Imagine a gold rush where 200 prospectors arrive but there's only enough gold for 50. That's essentially what's happening in today's photovoltaic panel industry. Since Q3 2023, we've witnessed a historic market correction where even established players like *ST嘉寓 and NorSun are collapsing like dominoes. The numbers tell a grim story: China's photovoltaic sector saw 13 bankruptcies by November 2024, with 78% of listed manufacturers reporting profit decline
Contact online >>
Imagine a gold rush where 200 prospectors arrive but there's only enough gold for 50. That's essentially what's happening in today's photovoltaic panel industry. Since Q3 2023, we've witnessed a historic market correction where even established players like *ST嘉寓 and NorSun are collapsing like dominoes. The numbers tell a grim story: China's photovoltaic sector saw 13 bankruptcies by November 2024, with 78% of listed manufacturers reporting profit declines.
Global PV manufacturing capacity now stands at 800GW - enough to power 160 million homes annually. But here's the rub: actual demand sits at 400GW. This oversupply has turned solar panels into a "race to the bottom" commodity, with module prices plunging 60% since 2022.
Remember when Europe promised to be the green energy champion? Norwegian Crystals didn't get the memo before collapsing in 2023. The EU's delayed REPowerEU implementation created a 4-month policy vacuum that Chinese manufacturers exploited through aggressive dumping.
Take Meyer Burger's German plant closure as exhibit A: $2.1 billion in assets became stranded overnight when subsidies dried up. The industry's average debt maturity profile (2.3 years) clashes violently with project payback periods (7-10 years).
Amidst the carnage, clever operators are finding oxygen masks:
Distressed asset specialists are having a field day. When Jiangsu Tengfei collapsed, its 2GW PERC capacity sold for 18¢ on the dollar - cheaper than some used car dealerships. But buyer beware: 43% of these fire-sale acquisitions require $7M+ in retrofits to meet new BIS standards.
The human cost often gets lost in financial reports. Reliance Industries' 42,000 layoffs made headlines, but smaller tragedies abound. One Chinese manufacturer's "marathon layoff" scheme required workers to complete 5km runs in 40°C heat - finish or get fired.
This isn't just a Chinese or European story. India's Tata Power shelved its $780 million cell factory, while U.S. thin-film startups like Siva Power entered Chapter 11. Even equipment makers aren't safe - German inverter giant Fronius axed 550 jobs despite 14% YoY revenue growth.
Amidst the turmoil, new opportunities emerge like mushrooms after rain. Second-life solar panel recycling could become a $12 billion market by 2027. Emerging technologies like perovskite tandem cells are attracting venture capital at valuations that make 2021's SPAC frenzy look tame.
As the dust settles, survivors will dominate a $423 billion global market by 2030. But for every Longi that emerges stronger, there are ten Jiangsu Tengfeis left in the bankrupty junkyard. The industry's final lesson? In solar manufacturing, it's not about riding the wave - it's about not drowning when the tide goes out.
Visit our Blog to read more articles
We are deeply committed to excellence in all our endeavors.
Since we maintain control over our products, our customers can be assured of nothing but the best quality at all times.