As important policy milestones such as “430” and “531” approach, the photovoltaic (PV) industry is expected to experience a surge in installations. According to the latest survey by TrendForce, government incentives are stimulating overall demand in the PV sector, leading to a tightening supply of components. A small peak in demand is anticipated in March and April 2025, which could consequently drive an increase in industry chain prices during the second quarter.
In recent years, the PV industry has faced challenges due to mismatched demand, triggering a price war across the supply chain. Prices of PV products and components have been fluctuating downward. To restore order and promote a disciplined market environment, the industry has strengthened self-regulation since the end of 2024, implementing several policies aimed at self-rescue, balancing supply and demand, fostering technological innovation, and adjusting prices. Zhongyuan Securities has noted that these policies are likely to boost installation rates among companies.
From January to February 2025, the domestic newly added PV installation capacity reached 39.47 GW, representing a year-on-year increase of 7.49%. The slowdown in year-on-year growth is attributed to various factors, including a high installation base, a significant amount of installations at the end of 2024, and the onset of the off-peak season. However, as the “430” and “531” policy deadlines draw nearer, a temporary surge in installations is expected to lead to a noticeable rebound in growth rates for PV installations in April and May.
According to data from the financial news service, relevant listed companies include:
- KuaiKe Electronics, which primarily serves mainstream PV component manufacturers both domestically and internationally. The company’s main products are compatible with N-type TOPCon and BC components, and their prices are positively correlated with fluctuations in downstream component prices.
- Yingjie Electric, whose power products are applied in various fields, including renewable energy sectors such as PV (polysilicon, monocrystalline, and solar cells), electric vehicle charging stations, hydrogen production, and nuclear power.
As the PV industry gears up for this anticipated installation rush, stakeholders are advised to stay informed and prepared for the upcoming changes in the market.
