China’s solar photovoltaic (PV) manufacturers find themselves at a critical juncture, grappling with the aftermath of years of price wars and losses in the face of excess capacity and dwindling demand. Against this backdrop, industry executives recently convened in Shanghai to deliberate on the challenges plaguing the sector. This gathering coincided with the prestigious SNEC PV+ Photovoltaic Power Conference and Exhibition, a significant event in the industry calendar that drew participants from over 100 countries.
During the conference, Zhu Gongshan, chairman of the Asian Photovoltaic Industry Association and a key figure in organizing the event, emphasized the collective nature of the industry, cautioning against unsustainable practices like extreme cost-cutting and cutthroat competition. As he aptly put it, “We are all in this together. Extreme cost-cutting and fierce competition are not different from drinking poison to quench thirst.”
Despite the oversupply issue, China managed to install a staggering 278 gigawatts (GW) of solar PV capacity in the previous year, representing nearly 60% of global additions. This surge in capacity, exacerbated by China’s environmental commitments and support schemes, has led to a substantial 60% drop in solar module prices from 2020 to 2024, as reported by S&P Global Ratings.
Zhu, the founder and chairman of GCL Technology, stressed the need for a strategic shift in the industry towards enhancing collaboration between government and businesses. He advocated for measures to regulate supply either through policies or industry consolidations. Furthermore, Zhu emphasized the importance of technological innovation as a means to drive higher profit margins and foster sustainable growth within the sector.
In his keynote address at the conference, Zhu painted an optimistic yet realistic picture of the future of solar photovoltaics. He acknowledged the challenges ahead but underscored the necessity for proactive and transformative actions within the industry. “The future of solar photovoltaics is certainly bright, but the darkest moments come before dawn,” Zhu remarked, urging stakeholders not to wait for a cyclical upturn but to proactively address the sector’s structural transformation.
As China’s solar panel manufacturers navigate through this period of upheaval and transformation, the industry stands at a crossroads. The path forward lies in strategic collaborations, technological advancements, and a collective commitment to sustainable growth. By embracing innovation and reimagining their business models, industry players can not only weather the current storm but emerge stronger and more resilient in the evolving landscape of solar energy.
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