The chairman and CEO of leading Chinese PV manufacturer JinkoSolar has said he remains “bullish” in the face of a looming industry downturn driven by fierce competition among module manufacturers.
In an interview published in full on PV Tech Premium today, David Lee said that despite all the signs pointing to a downturn this year, the strong underlying economics of the solar sector means that recovery would follow swiftly.
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There is a growing expectation within the industry that a lengthy upturn period for manufacturers will come to an end this year as production overcapacity prompts a sharp fall in prices. PV Tech analyst Finlay Colville first raised the prospects of a downturn in a blog post towards the end of last year.
But Lee said of the prospects for the industry: “I’m quite bullish about market demand in 2024. I foresee a 20% growth compared to 2023, primarily driven by the falling prices which boost the return on investment for solar projects.
“I’ve always said we shouldn’t overemphasise short-term disturbances while underestimating long-term trends. This is particularly true for our industry at this moment. It’s crucial to stay confident during downturns because, with costs coming down, solar energy is undoubtedly the future.”
Lee said the likely overcapacity situation in the industry would lead to a rapid phasing out of unprofitable or technologically unviable production lines.
“There are three specific types of capacity which will quickly become obsolete. Firstly, I foresee that capacities that were unprofitable in 2023 will not be sustainable; secondly, capacities lacking market presence and the ability to sustain continuous operation will also be quickly eliminated. Lastly, those capacities without the potential for ongoing investment will also be phased out, as continuous efficiency improvements are essential in the photovoltaic field,” he said.
Lee also said he anticipated JinkoSolar’s shipments to continue to grow in 2024, driven by advances in its module offering.
“Whether it’s product innovation, market reach, or the efficiency of our production capacity, Jinko has excelled in all areas,” Lee said. “By the end of the year, we aim for our TOPCon technology to achieve an efficiency of 26.5%, with all our modules reaching a power output of over 600 watts. We’re confident in our ability to thrive through this new cycle, bolstering our standing in the industry and expanding our market share.”
To read the full interview on PV Tech Premium, click here.