Shang Hai Zheng Quan Bao·2026-02-11 17:57Core Viewpoint - The photovoltaic industry is transitioning from oversupply to a phase of accelerated capacity clearance, with expectations of a more intense market correction in 2026 compared to 2025 due to weakening demand forecasts [1][4]. Group 1: Company Actions - Several photovoltaic companies, including Mingguan New Materials and Trina Solar, have announced project terminations or fund reallocations to more promising areas due to declining profitability in the industry [2]. - Mingguan New Materials terminated its investment in a solar backplane production project, initially planned with a total investment of 5 billion yuan, citing industry competition and rising operational costs as reasons [2]. - Trina Solar plans to reduce funding for its original project and redirect remaining funds to a new distributed smart photovoltaic power station project, which is expected to contribute a net profit of 94.91 million yuan annually [2]. Group 2: Production Adjustments - Some companies, such as Oujing Technology and Tianyi New Materials, have suspended production due to decreased demand from downstream customers, with utilization rates as low as 14.66% for certain subsidiaries [3]. - Cross-industry companies like *ST Lvkang have completely exited the photovoltaic sector to alleviate financial pressures by selling all assets related to photovoltaic film business [3]. Group 3: Supply and Demand Dynamics - The photovoltaic industry is facing significant excess capacity, with analysts noting that the slowdown in short-term demand exacerbates supply chain pressures [4]. - The China Photovoltaic Industry Association projects a decrease in new photovoltaic installations in 2026, estimating a range of 180 GW to 240 GW, down from 315.07 GW in 2025, indicating a decline of 24% to 43% [4]. Group 4: Future Market Outlook - Global photovoltaic installation growth is also expected to slow, with projections for 2026 ranging from 500 GW to 667 GW, compared to 580 GW in 2025 [5]. - Analysts predict that the era of high growth in the photovoltaic sector may be over, with annual growth rates potentially stabilizing at around 3% after 2027 [5]. Group 5: Industry Resilience and New Opportunities - The competitive environment has fostered resilience and adaptability among Chinese companies, prompting them to seek new growth avenues beyond traditional photovoltaic operations [7]. - Companies are focusing on cost control and efficiency improvements to maintain competitiveness, while also exploring diversification into areas like energy storage and new photovoltaic applications [8][9]. - Trina Solar has set ambitious profit targets for 2026, reflecting confidence in recovering profitability and expanding into energy solutions [8].