Industry Background: Overcapacity Triggers a "Race to the Bottom"
The new energy industry is booming, with the global market reaching approximately $3.5 trillion in 2024. However, rapid capacity expansion has led to massive oversupply and intensifying price wars — solar module prices plummeted from $0.25/W in 2023 to $0.09/W in 2025, severely squeezing corporate profit margins.
This industry-wide price warfare is creating a dual squeeze on enterprises: surging biddable projects overwhelming traditional quoting processes, and crude cost accounting making profitability uncertain even when orders are won. "Win the project and protect the margin" has become the core challenge for new energy companies.
The Quoting Challenge in New Energy
Unique industry characteristics make quoting far more difficult than in traditional manufacturing:
- Complex solution customization — High product individualization with slow and inaccurate technical solution development
- Convoluted cost models — Spanning materials, labor, overhead, freight, and capital costs with frequently adjusted pricing models
- Lengthy collaboration chains — Coordination across product, finance, procurement, and production departments
- Inefficient change management — Frequent changes to requirements, solutions, and quotes lack unified traceability
FengChao CPQ Solution
FengChao CPQ targets new energy industry pain points with five core capabilities for precision margin control and efficient order acquisition:
- End-to-end linkage with version control — Multi-level associations and multi-version management from RFQ to final quote, with full history tracking
- Intelligent configuration with BOM parsing — Rules engine supporting CTO+ETO hybrid mode, reducing solution development cycles by over 70%
- Full-cost dynamic calculation — Comprehensive cost model with automatic gap inquiry and dynamic adjustment
- Multi-dimensional pricing engine — Gross margin calculation, target price reverse-engineering, and automated standardized quote generation
- Task-driven collaboration — Automatic task assignment and progress tracking, improving overall quoting efficiency by 30%
Case Study: A New Energy Company's Digital Quoting Transformation
A photovoltaic equipment manufacturer with products sold across numerous countries was handling hundreds of bid projects annually. As overseas business expanded rapidly, the traditional Excel+email quoting model could no longer keep pace — quote cycles were long, accuracy was low, and inconsistent regional pricing models led to high gross margin prediction deviations.
Using FengChao CPQ, the company built a "Tracker Intelligent Quoting System" covering global core markets. Key results:
- End-to-end digitization — RFQ → Technical Solution → Cost Estimation → Quote Approval — fully online collaboration eliminating information silos
- Standardized framework — Unified global quoting model with 100% cost accounting consistency and BOM accuracy
- 40% increase in quoting capacity — Same team handles more bid projects with significantly reduced margin prediction deviation
In an era of overcapacity, competition is fundamentally about efficiency and precision. FengChao CPQ helped this enterprise transform from "reactive order following" to "proactive margin control," from "regional fragmentation" to "global collaboration," and from "lowest-price bidding" to "precision profitability" — finding a path to sustainable growth amid fierce industry competition.
Start Your Digital Quoting Journey
If your new energy company faces challenges with quoting efficiency, crude cost accounting, or uncertain profitability, contact the FengChaoCloud team. We offer complimentary business diagnostics and solution consulting to help enterprises achieve precision margin control in an era of overcapacity.