China’s solar photovoltaic industry saw a 33.9% year-on-year decline in export volume in 2024, leading to expanded losses for enterprises and the industry being caught in a situation of being squeezed from both domestic and international markets.
According to a report by the Huaxia Times on March 3, Wang Bohua, the Honorary Chairman of the China Photovoltaic Industry (solar power) Association, commented on the state of the solar photovoltaic industry in 2024 stating, “The development situation of the photovoltaic industry last year is not optimistic.”
The export volume of China’s solar photovoltaic industry in 2024 fell significantly, with data showing that the total export value of photovoltaic products was approximately $32.02 billion USD, a decrease of 33.9% compared to the previous year. The main reason for the significant decrease in export volume was the rapid decline in product prices: polysilicon prices fell by over 39%, silicon wafer prices fell by over 50%, and solar cell prices fell by over 30%.
At the same time as prices dropped, the export volume of silicon wafers decreased by 13.3% year-on-year.
Reports indicate that with the rapid decline in prices of optoelectronic products, the profit margins of companies within the industry have been severely squeezed, leading to some small and medium-sized enterprises declaring bankruptcy. Up to now, at least 33 listed photovoltaic companies are expected to incur losses in 2024 due to reasons such as reduced revenue, turning from profit to loss, projected performance decline, project suspensions, and changes in equity. The combined amount of these 33 companies’ projected declines and losses is approximately RMB 40 billion.
Wang Bohua stated, “The losses of enterprises are continuously expanding, and the industry is facing a crisis in cash flow.”
Li Ting, Director of the Electronic Information Department of the Ministry of Industry and Information Technology of the Chinese Communist Party, mentioned that domestically, enterprises in the main industrial chains of materials, wafers, cells, and modules have experienced significant losses, leading to deeper problems such as the relaxation of product quality control and a decline in effective research and development investment. Li Ting said, “The ‘inward-spiraling’ competition has not been fundamentally resolved, and the external trade situation is worsening, leading to overall losses for enterprises.”
On March 1, Huaxia Energy Network cited data released by the leading global renewable energy and technology consulting company Infolink, showing that the current average price of multicrystalline silicon dense blocks is 39 yuan/kg, lower than the sales costs announced by the leading company Daquan Energy in the fourth quarter of 2024. This indicates that apart from a few companies that have significantly reduced costs, most multicrystalline silicon manufacturers are still operating at a loss.
On the evening of February 27, several Chinese photovoltaic companies simultaneously released their 2024 performance updates. Among them, the leading enterprises in the industry chain, Tainergy, JA Solar, and Daquan Energy, collectively reported a non-recurring net loss of 8.8 billion RMB for the year.