China solar industry to take $5.5bn hit
TCL Zhonghuan Renewable Energy, Trina Solar, Longi Green Energy Technology, JA Solar Technology and Tongwei are collectively expecting the loss, reported in stock exchange filings, which comes on top of the $4.8 billion loss they made in 2024.
Tongwei is reporting the biggest forecast loss at $1.3-1.4 billion, saying: “The industry’s temporary oversupply problem has not yet been alleviated.”
JA Solar blamed “a concentrated release of production capacity” and “intensified international trade protection policies.”
The US has put import duties on solar products from Cambodia, Malaysia, Thailand and Vietnam, where Chinese solar companies set up operations to avoid previous tariffs. The cost of silver, a key ingredient, rose sharply last year.
Earlier this month, China’s Ministry of Finance announced the end of export tax rebates for photovoltaic products, taking effect from 1 April, which could reduce the price declines.
China had 1.16TW of installed solar power capacity in November, which was up 41.9% from a year ago, according to the National Energy Administration.