Technicians install solar photovoltaic panels at a power station in Zigui county, Hubei province, in November. ZHENG JIAYU/FOR CHINA DAILY

China is set to break another record for solar power installations this year, despite challenges in the equipment manufacturing sector, which is going through declining prices and shrinking profit margins, said industry experts.

China's photovoltaic industry may see robust growth in installed capacity this year with new installations ranging between 230 gigawatts and 260 gigawatts, driven by rapid development of the nation's desert power bases and accelerated measures to support rooftop panels, according to the China Photovoltaic Industry Association.

Accelerated grid construction across the nation, which allows solar energy to be transmitted to demand centers further afield, also helped push installations higher than previously thought, it said.

Compared to previous years, 2024 witnessed an obvious decline in production growth rates across various stages of manufacturing, said Wang Bohua, honorary chairman of the China Photovoltaic Industry Association, during the 2024 annual conference of the photovoltaic industry held in Sichuan province on Thursday.

The losses for solar companies might impact the firms' research and development investments and technological progress, thereby reducing the long-term competitiveness of the industry, he warned.

Despite numerous difficulties and challenges, Wang suggested prioritizing marketing innovation and deepening industry-academia collaboration to enhance the industry's competitiveness and technological level with core technologies.

He called for strengthened industry collaboration, including optimizing industrial layouts and capacity planning, achieving resource sharing, complementing each others' advantages, and collectively addressing market challenges.

According to the association, compared to previous years, the biggest change this year has been the decline in production growth rates across the four key stages of manufacturing — polysilicon, silicon wafers, solar cells, and photovoltaic modules.

In the first 10 months, the growth rates for these four stages were 42 percent, 33 percent, 25 percent and 21 percent, respectively, compared with the lowest growth rate among these stages being 72 percent during the same period last year, it said.

On the capacity side, the number of commissioned, under-construction and planned projects in the first 10 months dropped by over 75 percent year-on-year, and the growth rate of domestic capacity has also slowed.

Gu Yu, deputy director of the trade remedy and investigation bureau at the Ministry of Commerce, said photovoltaic companies should strengthen capacity adjustment by quickly focusing on optimizing existing capacity, controlling expansion, and improving quality.

The photovoltaic industry has continued to make steady progress in 2024, contributing to the acceleration of China's green and low-carbon transformation and the development of a green, low-carbon, and circular economy, he said.

Data released by the association show that China's new photovoltaic installations reached 181 GW during the first 10 months this year, a 27 percent year-on-year increase. China's exports of solar cells and modules, meanwhile, grew by more than 40 percent and 15 percent, respectively.

China's total export value of photovoltaic products, including silicon wafers, solar cells, and modules, fell 34.5 percent year-on-year to $28.14 billion, despite its increasing export volume, it said.

India, Turkiye and Cambodia are the top three export markets for batteries, with exports to India remaining at a high level. Europe remains the largest export market for modules, though its market share has significantly declined, said Wang.

Outside of Europe, South Asia, Latin America, and the Middle East have relatively large market shares, indicating a notable trend toward diversification in module export markets, with other markets outside of the top 10 showing substantial growth, he said.

Despite the growing trend of de-globalization, Cao Renxian, chairman of new energy power equipment maker Sungrow Power Supply and president of CPIA, said it is essential to focus on a diversified overseas layout, avoid concentrating efforts in the same overseas markets, and carefully navigate the direction of expansion abroad.

"With clear advantages in Chinese solar products and technologies, we must proactively address international trade challenges and work together to navigate trade frictions," he said.

Strengthening international communication and cooperation is essential to promote the open, fair, and orderly development of the global photovoltaic market, he added.