Summary of Key Highlights from the SNEC 2026 Exhibition in Shanghai
The SNEC 2026 exhibition in Shanghai revealed two significant changes within the photovoltaic (PV) industry: Firstly, energy storage has shifted from a supporting role to a central one, with the number of energy storage exhibition halls surpassing that of PV halls for the first time. PV companies are turning to energy storage due to industry losses, although there are technical barriers to integrating the two technologies. Secondly, the reshuffle of the PV industry is nearing its conclusion, with the elimination process moving from simple elimination to strategic adjustments and mergers and acquisitions. Companies that wish to survive must possess three key advantages: a technological edge, access to overseas markets, and strong cash flow.
1. A Transformation in the Exhibition Format: Energy Storage Takes the Lead
In previous years, the SNEC exhibition was primarily a showcase for PV components, but this year there was a dramatic shift. There were six energy storage theme halls compared to only four PV halls, marking the first time that the number of energy storage halls exceeded those for PV. A more noticeable change was the absence of traditional component display boards; instead, large screens showcasing “full-scenario solutions” and simulations of “zero-carbon parks” were featured. This is not incidental but indicates a transition in the PV industry from scale expansion to high-quality development.
Zhu Gongshan, Chairman of GCL Group, pointed out the essence of this change: “The old model of growth is no longer effective.” The PV industry has relied on increasing production volumes for growth over the past two decades, but simply expanding scale is no longer profitable. It is necessary to move towards new directions that create value, with energy storage being at the core of this transformation.
2. PV Companies Embracing Energy Storage
Why are PV companies actively pursuing energy storage? The answer is straightforward: PV industries are experiencing losses, while energy storage is profitable. For example, in 2025, 15 leading domestic PV companies incurred a net loss of over 56 billion yuan, and all five major component manufacturers lost money in the first quarter of this year. On the other hand, the revenue from energy storage at Sungrow Power increased by 49% last year, and JA Solar achieved profitability with an operating margin of 28.6%—much higher than that of PV components. A representative from a PV booth stated, “The PV industry is a loss-making one; energy storage, on the other hand, offers substantial profits.”
In addition to financial benefits, there is also a technological imperative: The electricity generated by PV systems is unstable (more during the day and less at night, and more on sunny days than cloudy ones). Without energy storage for peak shaving, the power grid cannot handle the excess capacity, and cheap electricity cannot be effectively distributed. Li Zhengguo, founder of Longi Green Energy, made an analogy: “If cheap electricity cannot be used reliably, its value is limited.” Energy storage is crucial for overcoming this issue.
3. The Integration of PV and Energy Storage Is More Complex Than It Sounds
Many people assume that integrating PV and energy storage simply involves placing PV panels and batteries together, but it is far more complicated than that. Only “natively integrated” systems (such as Longi’s “LONGi ONE”) are efficient; such systems can increase project profitability by 2-4 percentage points and improve the Internal Rate of Return (IRR) by the same amount. The two technologies come from very different fields—energy storage uses electrochemistry (batteries), while PV relies on semiconductor physics (PV panels)—and there is little overlap between them. Shi Zhengrong, a pioneer in the PV industry, warned outsiders, “Those not in this field should be cautious; it’s easy to make mistakes, and it’s still uncertain whether energy storage can truly become a saving grace for the PV industry.”
4. The PV Industry’s Reshuffle is Nearly Over: Survival Depends on Three Key Factors
The main question on display was “who will survive.” The industry consensus is that the reshuffle is nearly complete, but the methods of elimination have changed. Large and medium-sized companies are not going out of business outright; instead, they are reorienting their strategies (such as ceasing new component production). Smaller companies face a more dire fate; those unable to keep up with technological advancements will be eliminated. The three key criteria for survival are:
- Technological Advantages: For instance, companies like Aixu’s ABC battery technology, which is in full production and demand.
- Access to High-Value Overseas Markets: The ability to establish a foothold in profitable markets such as Europe and the United States.
- Cash Flow: Having sufficient funds to sustain operations for 12-18 months (many companies are losing hundreds of millions each month and cannot last long).
In Conclusion
The PV industry is shifting from focusing on production volume to quality and value. Energy storage represents a new opportunity, but not everyone can participate in this transition. The reshuffle is fast-paced, and companies without core competitiveness will be quickly eliminated. Understanding this trend will help people identify the future opportunities within the PV industry.