According to the latest data from the General Administration of Customs, China’s solar product exports have exceeded 200 billion RMB for the fourth consecutive year in 2024.
Source: Qianlong.com
According to the latest data from the General Administration of Customs, China’s solar product exports have exceeded 200 billion RMB for the fourth consecutive year in 2024. Over the past decade, China has evolved from primarily relying on raw materials, equipment, and foreign markets to becoming a dominant player with a strong competitive edge in the global solar industry. In just a few years, photovoltaic (PV) products have become a cornerstone of China’s self-sustaining industry, leading the world in manufacturing scale, technological advancements, and the development of a comprehensive industry system.
As of December 2024, China’s total installed solar power capacity is expected to reach approximately 890 gigawatts (GW), reflecting a 45.2% year-on-year increase. This surge underscores the rapid pace of solar capacity growth in the country. Photovoltaic products, one of China’s major export categories, have become key drivers of its global green trade leadership. According to Lv Daliang, Director of the Statistical and Analysis Department at the General Administration of Customs, solar exports have remained above 200 billion RMB for four years running.
However, despite robust export figures, the price of solar cells—key components of photovoltaic modules—has been on a downward trend amid fierce market competition. Customs data indicates that in 2024, China exported 7.79 billion solar cells, up 38.2% from the previous year. However, the total export value dropped by 30%, amounting to 30.598 billion USD.
The decline in export prices for solar cells, despite the increase in volume, signals deeper adjustments within the industry. The photovoltaic sector is currently undergoing its fourth major cycle of market adjustments. Several publicly listed solar companies have recently announced their 2024 earnings forecasts. Among them, Longi Green Energy is projecting a net loss of 8.2 to 8.8 billion RMB, while Tongwei Co. expects a loss of approximately 7 to 7.5 billion RMB. Both are major players in the photovoltaic module supply chain, having reported profits of over 10 billion RMB in 2023, but they are now facing a downturn.
A report by Ping An Securities notes that the fierce competition in the photovoltaic industry reflects ongoing issues with homogeneity across key segments of the photovoltaic module supply chain. A recent analysis by CICC highlights that while high prices in previous years incentivized significant capacity investments in 2023, shifting supply and demand dynamics have led to a price correction, with prices beginning to stabilize in the second half of 2024 after peaking in late 2022.