Investigations into Chinese makers of solar panels suspected of benefiting from state subsidies have added uncertainty and further tariff risk, discouraging buyers from committing to new purchases. Shares of local solar groups have fallen this year as module prices drop.
Shares of local solar groups have fallen this year as module prices drop. Gross margins at JinkoSolar, for instance, fell to 3.1 per cent in the year to September, down from 16 per cent in 2024. The outlook remains bleak, too.
China’s solar sector, which dominates global production, is suffering one of the deepest and longest downturns in the industry’s history. In the first half of this year China installed 256 gigawatts of solar capacity — more than twice the rest of the world combined, according to energy think-tank Ember.
Chinese factories, however, produced more than double that capacity. Small wonder the four largest local solar groups posted a combined loss of $1.5bn in the first half of this year. In part, that reflects the fact that, amid a production glut, exporting Chinese-made panels has become more difficult.
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