(Yicai) Oct. 31 -- Insiders from the photovoltaic industry have explained to Yicai that rumors about China’s top five solar module makers hiking product prices are misleading.

The situation appears to be a bit convoluted, Yicai learned from interviews with insiders across the PV industry. For example, a large distributor said it did not receive any notice about price hikes from suppliers, while a sales representative from a second-tier solar module manufacturer confirmed the price increases.

JA Solar Technology, Jinko Solar, Longi Green Energy Technology, Tongwei Group, and Trina Solar are raising their solar module prices, according to recent online rumors. The firms have not yet directly addressed the claims, opting for more vague answers about related internal verification.

Distributors are more inclined to increase prices than producers, an industry insider told Yicai. In fact, it seems like prices were raised by distributors, not by manufacturers, the person added.

For instance, the distribution price for Trina’s solar modules rose from 63 Chinese cents (9 US cents) per watt to 66 Chinese cents per watt, while prices for centralized power plants remained unchanged.

However, that is not always the case. Another distributor explained to Yicai that it actually launched promotions to clean up inventory. It cut the prices to just over 50 Chinese cents per watt, much lower than the 68 Chinese cents minimum recommended price by the China PV Industry Association.

Solar industry consultancy giant InfoLink Consulting said that leading Chinese manufacturers of PV modules may have considered hiking prices, but they remain unchanged at the moment, mainly because market demand and marketing strategies still have the last word.

According to data from the Silicon Branch of the China Nonferrous Metals Industry Association, prices of silicon materials, wafers, cells, and modules have all declined this year, down about 38 percent, 50 percent, 43 percent, and 29 percent, respectively, from last year.

Editor: Futura Costaglione