As the policy deadlines of “430” and “531” approach, the photovoltaic (PV) industry is anticipated to experience a phase of increased installations. According to a recent survey by TrendForce, the Chinese government’s incentives are stimulating overall demand within the PV sector, leading to a tightening in component supply. This is expected to result in a slight surge in demand during March and April 2025, potentially driving an increase in prices across the industry chain in the second quarter.
In recent years, the PV industry has faced challenges due to mismatched demand, which has led to a price war throughout the supply chain. Prices for PV products and components have been on a downward trend. To promote orderly management and maintain market stability, the sector has been enhancing self-regulation since the end of 2024. This effort has resulted in several policies aimed at self-rescue, achieving supply-demand balance, fostering technological innovation, and price adjustments.
According to Zhongyuan Securities, government incentives are likely to boost installation rates among companies. In January and February 2025, the domestic installed PV capacity reached 39.47 GW, marking a year-on-year increase of 7.49%. The slowdown in year-on-year growth for domestic installations is attributed to factors such as the high base from previous installations in late 2024 and the arrival of the off-peak season. However, with the upcoming “430” and “531” policy milestones, a notable rebound in installation rates is expected in April and May.
As highlighted by financial news source Cai Lian She, several listed companies are related to this trend:
- KuaiKe Electronics primarily serves mainstream PV component manufacturers both domestically and internationally. The company’s main products are compatible with N-type TOPCon, BC, and other components, and their prices are closely correlated with fluctuations in downstream component prices.
- Yingjie Electric provides power products used in various sectors, including PV production equipment (multi-crystalline and mono-crystalline silicon, and solar cells), electric vehicle charging stations, hydrogen production, and nuclear power, representing the new energy sector.
