Views: 8 Author: Site Editor Publish Time: 2025-03-31 Origin: Site
When companies engage in a price battle they give up profits but staying out of the battle may lead to slipping market position. The photovoltaic industry slogan circulated extensively in the past yet it is finally transforming into fact. The year 2024 brought crushing €6.5 billion losses to photovoltaic giants who survived a brutal price competition that threatened their very existence.
The photovoltaic industry entered its most challenging situation ever during 2024. The industry faced unprecedented market competition that transformed losses into the standard operating norm while profitability almost disappeared from all major companies.
JinkoSolar which leads globally as a module supplier reported €12.04 billion in 2024 revenue with both a 21.96% year-on-year decline and a profit of €11.78 million attributable to shareholders. The net profit displayed a deficit of €131.56 million when non-recurring gains and losses were omitted from the calculation.
In 2024 Trina Solar achieved a €10.44 billion revenue figure yet the company accumulated a €449.15 million net loss with an additional €675.87 million adjusted net loss at a 190.35% year-on-year decrease.
The major photovoltaic companies Daqo New Energy, LONGi Green Energy, Tongwei Co. and JA Solar presented substantial financial losses alongside TCL Zhonghuan and LONGi Green Energy who projected losses amounting to €1.15 billion and €1.14 billion, respectively. Tongwei Co. predicts its first ever loss since becoming public which will surpass €971.36 million.
A total of 43 photovoltaic companies released earnings forecasts for 2024 up until February 10 and 31 of these companies predicted losses that added up to more than 70% of the total companies. The total losses exceed €6.5 billion.
| Company | Revenue (€ Billion) | Net Profit Attributable to Shareholders (€ Billion) | Loss Status | Main Causes of Losses |
| JinkoSolar | €120.41 | €0.12 | Mild Loss (Excluding non-recurring items: -€1.32) | Decline in module prices |
| Trina Solar | €104.43 | -€4.49 | Severe Loss | Price war, declining gross margin |
| LONGi Green Energy | Not disclosed | -€11.44 | Huge Loss | Price war, technological transition |
| Tongwei Co. | Not disclosed | -€9.75 | First-time Loss | Sharp drop in silicon prices |
| Canadian Solar | €60.01 | €2.98 | Only Profitable Company | Growth in energy storage business |
Photovoltaic companies must discover fresh transformation strategies because the price war drives their industry toward closure. Multiple enterprises now test different development plans to overcome the crisis while certain organizations achieve their first positive outcomes.
| Diversification Strategy | Representative Companies | Key Actions | Main Results |
| PV + Energy Storage | Canadian Solar | Expanded 6.5GWh energy storage shipments, globally deployed large-scale storage projects | Successfully turned a profit, with a net profit of €2.98 billion |
| PV + Hydrogen | LONGi Green Energy | Developed green hydrogen electrolyzers, signed a €7.6 billion hydrogen project | Aiming to build a closed-loop system of 'PV Hydrogen Production + Chemical Conversion' |
| Technology Upgrades | Jinko, LONGi | Iterated TOPCon, HJT, and BC cell technologies to improve conversion efficiency | Increasing competition, profitability remains limited in the short term |
| Scenario Innovation | Tongwei Co. | Developed the 'Fishery-Solar Integration' model, combining photovoltaics with modern aquaculture | Self-invested PV power stations account for 15% of new installations |
The photovoltaic price war has created obstacles throughout the industry chain during the previous year affecting silicon materials production at the upstream level and module manufacturing at the midstream phase in addition to power plant investments at the downstream stage.
Market oversupply created a major price decrease throughout the market. By the start of 2024 silicon prices had dropped to €6.50/kg showing a decline of more than 75% below the €26/kg level from the previous year. Leading firms Tongwei Co. and Daqo New Energy experienced substantial profit reduction because of this sudden market price drop. Tongwei predicts a €1.27 billion net loss during 2024 as Daqo New Energy's gross margin dropped from 60% to below 20% indicating the beginning of industry-wide capacity cuts.
The price reduction fight between companies weakened their overall earnings performance. The market price of 182mm modules reached the €0.13/W mark before early 2024 and certain bidding projects went even lower to €0.10/W. JinkoSolar along with LONGi Green Energy and JA Solar have maintained slight profits through N-type TOPCon technology by using premium pricing per watt. Small and mid-sized module manufacturers currently encounter severe difficulties that speed up the elimination of competitive markets. Industry consolidation within the Chinese solar sector will occur as more than 50% of the existing small and mid-sized module manufacturers predict to exist the market by 2025.
Falling photovoltaic module prices have transformed photovoltaic project investment costs into levels that should enable 350GW of global new PV installation growth during 2024 although financing obstacles have become the new major difficulty. Overall PV sector profitability decline has prompted banks to increase their scrutiny of PPA projects which leads them to raise their lending conditions. The declining trend of PPA contract rates in the European market during 2022 to 2024 demonstrates substantial price reductions from €70-80/MWh to €40-50/MWh which negatively impacts investor profitability expectations.
Companies across the industry are turning to "PV + Energy Storage" solutions which combine power scheduling systems with energy storage units to increase project earnings potential. A projections indicate that 30% of upcoming PV facilities will infuse energy storage elements by 2025.
The photovoltaic industry chain faces a major transformation process.
Silicon producers face demands to reduce capacity levels in their upstream operations.
The module manufacturing industry continues to consolidate rapidly through market consolidations in the midstream sector.
Power plant investors must implement expense cuts while handling investment limitations when implementing projects.
Memorial YEAR 2025 will push forward the pace at which the industries restructure themselves. The upcoming phase of market competition will only benefit businesses that possess superior technological competencies and worldwide operations alongside strong financial stability.
The photovoltaic industry could experience its defining change at the beginning of 2025. The market has changed due to the price war aftereffects as some businesses endure low-price competition yet others succeed by developing new technology and business strategies and expanding their global reach.
The industry transitioned to market share competition when module prices reached their production thresholds which created completely new survival standards for manufacturers. The competitive advantage of low prices no longer exists since companies now need to focus on technological advancements and market-transforming business strategies and supply chain optimization along with opportunities in energy storage and hydrogen markets.
The end of the price war will likely occur after 2025 although this coming year serves to define the industry's modern structure. Companies must detect emerging growth possibilities during market disturbances so they can conduct the industry reformation and begin their developmental cycle.
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