Solar Module Market Shakeup: QCells Exits Australia Amidst Price Declines

South Korean solar and home battery manufacturer QCells has announced the closure of its Australian branch, highlighting the difficulties faced by non-China owned PV brands in the country’s low-price market. The decision comes as the Australian solar market experiences record-breaking price drops and intense competition. While operations will continue for the next few months to fulfill customer service and supply obligations, the long-term impact on QCells customers remains uncertain. The company has assured customers that warranties will be honored under Australian Consumer Law, and after-sales support will be provided by Australian solar company Zeco. The closure reflects the oversupply of solar panels from China, resulting in plummeting module prices and a preference for cheaper alternatives among cost-sensitive consumers.

Unexpected Closure and Upbeat Outlook

The closure of QCells’ Australian branch came as a surprise to the local team, who had recently expressed optimism about the future. The company had celebrated 14 years in Australia on LinkedIn, anticipating an even brighter future in 2024. QCells had launched new rooftop solar panels and introduced its Q.Home Core residential battery system in Australia in 2022. Additionally, the company had entered the electricity retail space and frozen prices on energy plans in response to soaring wholesale electricity prices.

Impact on the Australian Market

The closure of QCells’ Australian branch raises questions about the demand for mid to upper-range solar panels in the country. Despite claims that customers are increasingly prioritizing quality over cost, the oversupply of Chinese modules has led to a significant drop in prices. Rystad Energy analyst David Dixon suggests that QCells may have struggled to compete in this price-sensitive market. However, the closure does not indicate a lack of demand for solar energy in Australia, as other companies continue to offer solar panels and after-sales support to customers.

QCells’ Success in the US

While facing challenges in Australia, QCells has recently achieved success in the US market. The company has opened a new solar panel factory in Georgia, capable of producing 5.1GW of PV annually. QCells was also ranked as the top solar panel brand on SolarReviews’ list of US solar panel manufacturers for the second consecutive year. These achievements demonstrate QCells’ ability to thrive in different markets and overcome industry challenges.

Sophie Vorrath, Editor of One Step Off The Grid and Deputy Editor of Renew Economy, has been reporting on clean energy for over a decade.