Key takeaways from SNEC 2026 in Shanghai

The 2026 edition of the SNEC PV Power Expo, which took place in Shanghai, China, last week, underscored the ongoing resilience of the Chinese PV supply chain despite continued industry-wide overcapacity.

Even in a prolonged low-price, low- to zero-margin environment, China’s largest solar trade fair has maintained strong attendance from both domestic and international participants. This reflects sustained global interest in emerging products and technologies, although the volume of new announcements, particularly for PV modules, appears lower than in past editions. At the same time, manufacturers across the sector have increasingly begun to diversify their product portfolios, expanding beyond traditional offerings in response to shifting market pressures.

According to the event’s organizers, around 115,000 visitors had attended the show after one and a half days, with more than 3,000 exhibitors present. The most notable development, however, was the large share of exhibitors active in the energy storage sector.

“This year’s SNEC marked a notable milestone, with the number of energy storage booths exceeding those of solar manufacturing companies for the first time,” OPIS analyst Summer Zhang told pv magazine. “Market participants jokingly remarked that the event felt more like an energy storage conference than a traditional PV trade show.”

According to Zhang, SNEC remains one of the industry’s largest and most influential gatherings. “However, the atmosphere at the spot appeared noticeably less vibrant than in previous years, with lower levels of activity and optimism compared with the bustling scenes that once characterized the event,” she added. “Market sentiment was broadly cautious, with most participants maintaining a pessimistic outlook on the near-term market. Many believe that persistent oversupply continues to weigh on the industry and that prices across much of the solar value chain have yet to reach their bottom. As a result, those attending SNEC in search of signs of a market recovery may instead find confirmation that further price declines remain possible after the conference.”

Soft consolidation

Zhang also explained that, although market sources indicated that recent industry meetings suggest relevant authorities still intend to advance a polysilicon consolidation plan in some form, industry players’ confidence in such efforts has weakened considerably. “Many market participants stated that, in the absence of a concrete and actionable framework, they are no longer willing to devote significant attention or resources to the initiative. Instead, the prevailing view is that the solar market has largely returned to a supply-and-demand-driven environment, with market fundamentals once again playing the dominant role in price formation and production decisions.”

This shift has also altered industry dynamics, according to OPIS analyst. “Market participants generally believe that the coordinated efforts seen in previous downturns—where manufacturers collectively sought to stabilize or raise prices—are unlikely to re-emerge,” she further explained. “Instead, companies are expected to pursue strategies aligned with their own commercial interests, market positioning, and competitive advantages, rather than acting in a unified manner. This may result in increased price divergence among market participants and provide greater scope for further price declines.”

In the cell and module segments, this SNEC highlighted a growing number of manufacturers investing in back-contact (BC technology) as they seek to secure an early position in what many view as a potential long-term transition from TOPCon to BC products. At the same time, severe product homogenization and intense competition are driving module manufacturers to place greater emphasis on application-specific solutions. “Rather than competing solely on price and standard specifications, companies are increasingly developing customized products tailored to particular use cases and customer needs, including balcony modules, offshore modules, and other scenario-based offerings designed to create differentiation and capture niche market opportunities,” Zhang stated.

According to Jenny Chase, Solar Analyst at BloombergNEF, this year’s SNEC edition was still able to attract a lot of people. “The halls still feel pretty crowded, especially the ones doing inverters or energy storage. But it’s not as active as it was in previous years. There are fewer booths, there are fewer new companies, there are fewer sort of high-profile jazzy events happening at booths,” she told pv magazine. “And When you go into meetings with the Chinese manufacturers, they’re subdued. Then they’re saying it’s the worst down phase in the solar industry that they’ve ever seen. It’s been three years of losses. It’s not clear that there will be a rebound in demand, and in fact, we don’t expect there to be.”

Compared with previous years, the event felt somewhat slower, particularly when contrasted with the period when it was held in Pudong, where it was almost impossible to get a taxi. “The ease of transportation this year is, in itself, a clear indicator of the shift in momentum,” Edurne Zoco, executive director in the Clean Energy Technology group at S&P Commodity Insights, told pv magazine.

“What we are observing is a form of soft consolidation in the industry. Large players are increasingly expanding across different segments of the value chain,” she went on to say.” Companies that were traditionally focused on specific components—such as inverters, PCS, BESS, or trackers—are now also entering adjacent areas, including modules. Developers are also moving further upstream. This suggests a broader trend toward integrated cleantech providers, offering full-system solutions rather than isolated products.”

This perspective was echoed by several participants, with many noting that the fair now feels like a platform where nearly every company is showcasing a broad range of solutions. This raises the question of whether this diversification strategy will ultimately succeed, or whether it may delay a more traditional consolidation process involving insolvencies or acquisitions. This is particularly relevant given that overcapacity remains a key issue across parts of the industry.

“However, based on available data—especially in the battery cell segment—the situation is less straightforward,” Zoco added. “It is difficult to argue that the market is currently in a state of oversupply. Forecasts have been revised upward across multiple regions, driven in part by strong demand expectations for data centres. These are increasingly co-located with battery systems, but demand is also growing in behind-the-meter applications, including both retrofit projects and new standalone installations.”

Divergence between segments

According to the S&P analyst, here is a noticeable divergence between segments. “While the module industry appears relatively subdued, with fewer visitors and a more cautious sentiment, the battery and PCS sectors present a more optimistic picture, albeit with some concerns,” she added.

Module manufacturers continue to face weak demand conditions, particularly in China, which remains the most important market globally. Many do not expect a significant recovery in the near term. As a result, consolidation has not accelerated as expected. While mergers and acquisitions are taking place, they are often vertical expansions into modules rather than true consolidation of capacity between module manufacturers.

“Instead of exiting the market, many companies are adjusting utilization rates to manage inventory levels,” Zoco further explained. “A more meaningful wave of consolidation or capacity rationalization may therefore only materialize in the coming year, depending on how market conditions evolve.”

Sentiment in the module segment remains relatively pessimistic, largely due to persistent oversupply concerns and the presence of so-called “zombie” players. In contrast, the battery and PCS segments show more optimism, although policy uncertainty is a growing concern. “Policy is currently viewed as the key risk factor—not so much demand itself, but the potential impact of regulatory changes on manufacturing strategies, procurement decisions, and long-term planning. The rapidly changing geopolitical environment adds further uncertainty, raising barriers to entry and complicating investment decisions,” Zoco concluded.

From volume to quality

Yana Hryshko, Managing Consultant, APAC, Head of Global Solar Supply Chain Research at Wood Mackenzie, stressed that almost all manufacturers are still operating at a loss. “According to our latest 2025 ranking, the top 10 manufacturers collectively recorded losses of around $5.5 billion,” she told pv magazine. “Of these, only about six are Chinese companies. This highlights the scale of financial pressure across the industry, leaving limited room for investment in areas such as marketing.”

Despite persistent overcapacity, earlier expectations of significant consolidation have not fully materialized. Efforts to structurally rebalance segments such as polysilicon have fallen short of expectations, and upstream pressure is now also affecting wafers and cells. “While some insolvencies have been reported in parts of the manufacturing base, a broader wave of consolidation has yet to emerge,” she stressed. “Half a year ago, expectations for consolidation were significantly higher. However, momentum has since stalled, with little sign of coordinated restructuring across major players. One view within the industry is that meaningful change may only occur if one of the largest manufacturers fails, triggering a redistribution of market share and potentially resetting the competitive landscape.”

For now, the market appears to be settling into a prolonged state of structural oversupply. While this is widely recognised, it is unclear whether it is sustainable in the long term. At the same time, manufacturers are increasingly shifting their focus from volume to quality. The emphasis is moving toward higher-efficiency products and more selective order intake, which could gradually drive a degree of natural selection within the industry.

“Whether this evolution leads to consolidation through market forces or requires stronger policy intervention remains an open question,” Hryshko explained. “While several regulatory measures have already been introduced, enforcement has so far been limited, and their impact on capacity rationalisation has been modest.”

In parallel, a structural shift is underway from standalone solar to integrated solar-plus-storage solutions. Nearly all solar manufacturers are now offering storage systems, while storage players are increasingly capable of supplying solar components. Recent examples include companies such as Sungrow introducing module products, reflecting a broader move toward integrated clean-tech platforms.

“This transition is being driven by clear system logic: customers increasingly prefer integrated solutions with a single supplier, unified warranty, and end-to-end service coverage,” Hryshko concluded. “As a result, the industry is rapidly converging toward combined solar and storage offerings rather than separate product categories.”