JinkoSolar: PV demand hits bottom in 2026, 20-30% of capacity will be withdrawn from the market next year

2026-08-28 09:21:28

The company judged that the photovoltaic market demand hit the bottom in 2026. Looking forward to 2027, with the reconstruction of investment model and the gradual stabilization of new power system cognition, as well as the planning and gradual landing of large-scale transmission and distribution projects, the demand for large-scale ground power stations will recover.

On August 27, Jingke Energy disclosed the research information at the performance statement meeting. The company judged that the photovoltaic market demand hit the bottom in 2026, and judged that 20-30% of the production capacity would be withdrawn from the market next year.

Recently, Jingke Energy disclosed its performance report for the first half of the year. In the first half of this year, Jingke Energy realized an operating income of about 24.727 billion yuan, a decrease of 22.32% over the same period last year. The corresponding attributable net profit was about -3.076 billion yuan, compared with -2.909 billion yuan in the same period last year, a slight increase in losses over the same period last year. In view of the performance loss, Jingke Energy said that the main reason was the periodic mismatch between supply and demand brought about by the fierce competition in the industry, which led to the decline in product prices in all aspects of photovoltaic module integration.

At the performance presentation meeting, Jingke said that in the first half of the year, the company's net profit loss was 3.076 billion yuan, but the gross interest rate increased by 5.41 percentage points compared with the same period last year. At the same time, the company continued to optimize its capital structure and cash flow management. In the first half of the year, the company's operating cash flow was positive, and the asset-liability ratio decreased by 1.03 percentage points compared with the beginning of the year. The financial situation is steadily improving. In terms of energy storage, the company delivered 3.1G Wh of energy storage system products in the first half of the year.

In the second half of the year, the company will further strengthen the balance between profit and scale, and accordingly adjust the annual component shipment guidance for 2026 to 60-70 GW, of which 15-17 GW is expected to be shipped in the third quarter.

When asked how to view the impact of electricity marketization on domestic demand, Jingke Energy judged that the photovoltaic market demand hit the bottom in 2026 because of the promotion of electricity marketization reform. The investment model of power investors and the recognition of the new power system need to go through a process of reconstruction. In 2026, large-scale power station projects were under pressure in stages, but the household market demand was strong and the industrial and commercial market demand was healthy.

Looking forward to 2027, Jingke Energy believes that with the reconstruction of investment model and the gradual stabilization of new power system cognition, as well as the planning and gradual landing of large-scale transmission and distribution projects, the demand for large-scale ground power plants will recover .

At the same time, next year, the mandatory national standard for photovoltaic will be implemented. Affected by this, Jingke Energy judges that the industry is expected to withdraw 20-30% of its production capacity from the market from January 1 next year, while the demand for photovoltaic market may increase slightly next year. The supply and demand pattern will improve quarter by quarter.

JinkoSolar estimates that next year, the industry's capacity to meet Level 1 energy efficiency is estimated to be 150-200 GW . At present, TOPCon high-power products have an average premium of about 1 cent/W over ordinary products in overseas markets; The domestic market maintains a premium range of 5 cents/W-1 gross/W. With the implementation of energy efficiency grade standards, it is expected that high-efficiency products will be more popular in the market and will gradually be reflected in the premium.

In addition, for the company's energy storage business, Jingke Energy said that the company's energy storage system shipment area this year is mainly overseas, mainly in Europe and the Asia-Pacific region. The recent fall in the price of lithium carbonate is beneficial to the overall profitability of the contracts signed by the company in the past six months. It is expected that in the second half of the year, with the increase of energy storage shipments, production costs will be improved, and the gross profit margin of energy storage is expected to maintain or increase slightly.

Jingke Energy said that the company currently mainly lays out large storage and industrial and commercial energy storage. In terms of product structure, the company will make greater efforts in industrial and commercial energy storage next year to increase its proportion in the company's business; in terms of market structure, Europe, Asia-Pacific and Latin America are expected to be the core target markets for growth next year.

The following is the full text:

1. How does the company view the impact of energy efficiency standards on the industry and the company's leadership in energy efficiency?

The company estimates that the industry will have 20-30% of its capacity withdrawn from the market from January 1 next year due to the impact of energy efficiency standards. Next year, the photovoltaic market demand may increase slightly, and the supply and demand pattern will improve quarter by quarter. Since the end of last year, the company has planned to upgrade the production capacity of Feihu 3 with more than 40 GW, which is now in the process of gradual release, and is expected to reach nearly full production in the third quarter.

2. What is the scale of the industry's current production capacity that meets Level 1 energy efficiency? And the competitiveness and premium ability of high-power products?

The industry's production capacity that meets Level 1 energy efficiency next year is estimated to be 150-200GW for TOPCon and BC. At present, TOPCon high-power products have an average premium of about 1 cent/W over ordinary products in the overseas market; the domestic market maintains a premium range of 5 cents/W-1 gross/W. With the implementation of energy efficiency grade standards, it is expected that high-efficiency products will be more popular in the market and will gradually be reflected in the premium.

3. How does the company view the impact

of electricity market on domestic demand? The company judges that the photovoltaic market demand will hit the bottom in 2026. Because of the advancement of electricity market reform, the investment model of power investors and the recognition of the new power system need to undergo a process of reconstruction. In 2026, large-scale power station projects were under pressure in stages, but the household market demand was strong and the industrial and commercial market demand was healthy. Looking forward to 2027, with the reconstruction of investment model and the gradual stabilization of new power system cognition, as well as the planning and gradual landing of large-scale transmission and distribution projects, the demand for large-scale ground power stations will recover.

4. What is the current cost advantage of the silver-clad copper technology and the further planning for the cost reduction of the silver-clad copper technology?

At present, the company's silver-clad copper technology is applied to Feihu 3 products. The comprehensive silver paste cost can be reduced by about 10% compared with the conventional product. In the future, the company will further explore the application of silver-clad copper in the main grid and even the front of the battery.

5. What is the current distribution of the Company's energy storage market structure, and the impact of the fall in the price of lithium carbonate in the second quarter on the Company's energy storage profitability?

The Company's energy storage systems are mainly shipped overseas this year, mainly in Europe and the Asia-Pacific region. The recent fall in the price of lithium carbonate is beneficial to the overall profitability of the contracts signed by the company in the past six months. It is expected that in the second half of the year, with the increase of energy storage shipments, production costs will be improved, and the gross profit margin of energy storage is expected to maintain or increase slightly.

6. Outlook for the product structure and market structure of the company's energy storage business in 2027?

The company mainly lays out large storage and industrial and commercial energy storage. In terms of product structure, the company will make greater efforts in industrial and commercial energy storage next year to increase its share in the company's business. In terms of market structure, Europe, Asia Pacific and Latin America are expected to be the core target markets for growth next year.

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