April 15, 2021

The ushering of solar’s golden age by Biden, China, and EU

2 min read

A Chinese manufacturer Jinkosolar said that Joe Biden’s election as the United States’ next president, together with Beijing’s net-zero carbon commitment and EU missions, will lead to a precious solar age. Kangping Chen, Jinko chief executive, said that they believe that this is a new dawn for the PV industry due to government policies that support renewable energy adoption, green investments, and a boost for grid transformation. Many nations and PV module manufacturing companies are determined to shift from fossil fuel usage to green energy. This will be achieved through the cooperation of various stakeholders in the energy industry. Investing in PV modules is among the many ways that the companies are doing to ensure they acquire clean power. 

Under Biden’s administration, solar energy demand will increase gradually in the US over the next five years. EU officials have said that greenhouse gas (GHG) is expected to be increased from the previous target of 40% to 60% by 2030. China has a five-year power plan that totally focuses on renewables sources and moves from fossil fuels. This project aims to install power plants, grid transformation, large-scale energy storage, and renewable energy support policies. 

Many PV manufacturers like Jinko would greatly benefit from the worldwide solar rapid economic growth. So far, this growth has already been experienced this year, from 12% last up to 15%. In the last quarter of the year, it shipped 5117MW of modules and the company’s annual capacity of 30 GW. In a period between July-September this year, the modules were selling at very low prices, leading to the gross profit decreasing from RMB1.51 billion to RMB1.49 billion in the second quarter and the last quarter. The rapid increase in the company stock prices in the last quarter, together with a positive global solar sentiment, led to a rapid rise in the company’s net profits. 

In the last quarter, Jinko made remarks on the material shortages that the solar industry is experiencing all over China. The company said that in some instances, it had been forced to use substitute materials. However, the company did not reveal more details about those substitute materials. Jinko said that it hopes that the supply chain will improve with time. In the second quarter, revenues increased from RMB8.45 billion to RMB8.77 billion, with expected total revenue of $1.31-1.43 billion. This will be attained with a shipment of 5.5-6GW modules in the current quarter in addition to 18.5-19GW for the year. 


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