- The PV ModuleTech Bankability Ratings Quarterly report provides the definitive guide to understanding, ranking and benchmarking the bankability status of leading global PV module suppliers to utility-scale sites.
- The latest report reveals a reality of widespread insolvencies in the Chinese solar panel manufacturing sector where massive production capacity expansion has outstripped market demand.
- The report reveal that the insolvencies will extend to the wafer and cell manufacturers.
- The news comes as China announced changes to its export tax rebate rate for photovoltaic products, batteries and certain non-metallic mineral products which will be reduced from 13 percent to 9 percent.
- The added squeeze on the market comes into effect on 1 December 2024.
The leading six Chinese suppliers (JinkoSolar, JA Solar Technology, Trina Solar, LONGi Green Energy Technology, Tongwei and Canadian Solar), which control 60% of the market, are expected to remain resilient by cutting capital expenditure commitments and implementing additional short-term cost cutting measures. Some have also diversified into the BESS sector. They also have sufficient accumulated cash reserves. Other solar panel manufacturers like Astronergy are also expected to weather the storm as part of a much larger and diversified CHINT Group.
Using the PV industry’s most rigorous bankability methodology, PV ModuleTech produce an analysis and rating for each company that can be used to benchmark suppliers against each other in terms of risk. The Chinese manufacturers that had liquidity problems before the downturn are most at risk of enforced insolvency proceedings next year according to the report.
Link to the full report HERE
A lower tax rebate means higher costs for Chinese manufacturers and exporters, which may result in price adjustments for international buyers. We can expect a massive surge in buying over the next two weeks as solar IPP’s and EPC’s outside of China load up on stock for projects planned in 2025.
Author: Bryan Groenendaal
