In the face of higher polysilicon prices, 88 percent of China solar panel manufacturers plan to lower or keep prices intact to win market share. This is according to Global Sources' China Sourcing Report: Solar Panels. Only 12 percent plan to increase prices.

"With the polysilicon shortage expected to continue until 2009, most manufacturers are implementing measures to streamline production," said Spenser Au, publisher of China Sourcing Report. "These include expanding to gain economies of scale, backward integration and R&D to produce thinner solar cells that require less polysilicon."

Apart from lowering production costs, China solar panel suppliers are looking for ways to reduce waste (28 percent); increasing automation (27 percent) and; upgrading management systems (25 percent). Others (20 percent) will focus on vertical integration and decreasing defects to step up manufacturing efficiency.

As for concerns for the next 12 months, majority (60 percent) of China suppliers cited price competition. Others noted raw material costs (25 percent), stricter overseas standards (7 percent), design copying (5 percent) and labor shortages (3 percent).