In order to meet the U.S. order demand surge, Talesun Solar Thailand production base successfully completed the 1.5 GW capacity upgrade in November 2019. At the same time, Zhongli Group, the parent company of Talesun Solar, reclaimed most of its domestic power station receivables. The accounts receivable of poverty alleviation power stations exceeded 1.752 billion yuan, offering sufficient support for the cash flow of company's regular operation.
With the development of global PV industry and the efforts for grid parity, Talesun Solar took an early move in the layout of global industrial development. At the beginning of 2019, Talesun Solar started the project 4.0 of upgrading Thailand factory. After the transformation, the capacity of high-efficiency PV modules reached 1.5 GW, which are mainly 158.75mm mono perc multi-busbar modules. The Thai production line is also compatible of manufacturing bifacial modules and 166mm large-sized wafer modules. This upgrade not only increased the production capacity of Talesun Solar high-efficiency products, improved the modern production level of the enterprise, greatly reduced the production cost, further improved the production efficiency and product quality, but also significantly improved the competitiveness of Talesun Solar in the overseas PV market. Due to the surging demand, Talesun Solar plans to once again expand its production capacity in Thailand, aiming to reach 2 GW capacity by the end of 2020.
Ever since Talesun Solar started its global layout, the company has paid more attention to developing business abroad, including modules and utilities. We have customers from 45 countries, for example, Baywa, EDF, Dominion, Sterling & Wilson, Macquarie, Lightsource, Power China and Engie and other world-famous power companies and utilities investors. Up till now, Talesun Solar power plant pipeline has reached 1.3 GW.
Judging from the current global PV market, high-efficiency PV modules are in an increasing demand at markets including the United States, Mexico, Brazil, traditional European markets and emerging markets such as the Middle East. According to International Technology Roadmap for Photovoltaic (ITRPV), bifacial modules will take over 60% of the global PV market in the next 10 years. Once again, the production line’s upgrade of Talesun Solar Thailand is in line with the market expectation.
Talesun Thailand has shipped 900 MW modules to the U.S. in the first three quarters, and high-efficiency modules entered the U.S. market
The U.S. market demand is top three in a global scale. With the change of federal investment tax credit (ITC) policy, according to the statistics of American Solar Energy Industries Association (SEIA), in 2019, the U.S. market demand increased significantly and planned PV projects reached a new record of 37.9 GW, exceeding the 15 GW of 2018.
However, the US domestic module production capacity is only around 5 GW, leaving a huge gap to the local market demand. Despite the insufficiency, it is almost impossible for Made-in-China modules to be imported to the U.S. market, due to the high price with the added cost of anti-dumping, anti-countervailing, 201 tariff and 301 tariff.
Confronted with the opportunity in the United States, Talesun Solar seized the chance to break through the U.S. market through Thai production capacity. It is reported that, from January to September 2019, Talesun Solar’s shipment volume to the United States has reached 0.9 GW.
Up till now, Talesun Solar has already reserved 800 MW orders from the U.S. market in 2020. In the future, with the advantages of domestic and overseas production capacity, Talesun Solar will accelerate the process of plant expansion and upgrade, continue to make efforts to overseas business, expand overseas market share and stabilize market position, and seize the opportunity of global PV industry development.