JinkoSolar expects transition phase for PV market to last until 2027-28
By Green Building Africa - Net Carbon Zero Buildings and Cities — June 30, 2025
- JinkoSolar expects the PV market transition to last until 2027-28 due to negative power prices and project delays in Europe.
- In an exclusive interview with pv magazine, Vice President Europe Frank Niendorf says growth will recover as storage and hybrid systems expand and consolidation progresses.
pv magazine: How is business going for JinkoSolar in Europe and Germany?
Niendorf: We are currently in a transition phase – not only for Jinko, but for the entire European solar market. The rapid expansion of PV capacity in recent years, particularly in Germany, Spain, and the Netherlands, has delivered impressive gains in clean electricity generation. However, this growth has exposed structural bottlenecks in the energy system: limited grid capacity, inflexible market rules, and a lack of storage infrastructure. Grid connection delays have become a top concern for developers and EPCs, especially in high-penetration regions. At the same time, we’re seeing negative electricity prices during peak solar hours become increasingly common – not as isolated incidents, but as a recurring pattern in markets like Germany and the Netherlands. This has had a direct impact on investor confidence and is slowing down procurement for PV projects relying on merchant models or [power purchase agreements]. That said, we do not see this as a market downturn – rather, it’s a realignment phase. The fundamentals remain solid: energy security, decarbonization goals, and industrial policy continue to depend on solar energy. What is needed now is the next phase of the energy transition — the large-scale integration of storage, modernization of grids, and deployment of intelligent demand response systems. We expect this adjustment period to continue until around 2026, as regulatory frameworks and hybrid incentives take hold across the EU. From 2027 onwards, we anticipate a strong acceleration in market activity, particularly in hybrid and storage-coupled projects – which will help stabilize electricity prices and restore investor confidence.
Are negative electricity prices now common in Germany at midday? How does this impact your business, and is it an advantage that you offer both photovoltaics and storage?
Yes, negative electricity prices around midday are occurring with increasing regularity – not only in Germany, but across several European countries. This is a clear signal that the energy transition is entering its second phase: we have successfully deployed a large volume of renewables, but the grid infrastructure and system flexibility have not yet caught up. In Germany, the grid is often overloaded during periods of high solar generation and low consumption, leading to negative wholesale prices. This trend is putting pressure on the revenue models of PV-only projects and increasing uncertainty for asset owners. At Jinko, we see this not as a setback, but as a pivotal moment. We are uniquely positioned because we offer both photovoltaic and storage systems from a single source. This allows us to deliver hybrid systems that optimize self-consumption, shift generation to more profitable time slots, and support the grid when it’s most needed. This integrated solution is especially attractive in the commercial and utility-scale sectors, where clients are increasingly seeking protection against price volatility and curtailment. Importantly, negative prices are not a sign that we have too much solar power, they are a sign that we lack sufficient flexibility. The European Commission and national governments recognize this, and we are now seeing encouraging developments: new capacity auctions, hybrid project incentives, and grid-supportive policies are being introduced across the continent. With our portfolio, we are well placed to meet these new demands and offer a path to market viability in this evolving landscape.
Has demand for energy storage grown recently?
Absolutely. We’ve seen a significant surge in demand for energy storage across Europe – and not just in Germany. Now, our storage systems are completely sold out, and we are rapidly expanding in capacity and partnerships to meet this rising demand. This trend is driven by a combination of price volatility, increased awareness of energy security, and clear policy signals in multiple EU markets. Storage is no longer seen merely to reduce peak loads or store surplus PV – it is now widely viewed as essential infrastructure for the future energy system.
Can you give some examples?
Italy is advancing hybrid solar-plus-storage through its FER2 incentive framework. Spain is reforming its auction and grid access system to reward flexibility. France and the Netherlands are seeing strong commercial interest, particularly to manage peak tariffs and ensure backup power. Poland, Hungary, and other CEE markets are introducing supportive mechanisms for co-located renewables and storage. From our perspective, storage has clearly moved into the mainstream. Utilities, IPPs, and commercial operators all see it as a core component of their energy strategy. At Jinko, we recognized this early, which is why we now offer integrated PV and storage solutions tailored to these new realities.
Which sector in Germany do you think has the greatest growth potential?
The commercial and industrial (C&I) sector in Germany offers the strongest growth potential. Across the economy, companies – from SMEs to major corporations – are prioritizing energy autonomy, long-term cost control, and climate neutrality. Solar, especially when combined with storage, supports all three goals. The volatility in energy prices over the past few years has led many businesses to reassess their energy procurement strategies. Increasingly, energy is being treated not as a commodity, but as a strategic asset. With the falling cost of n-type TOPCon technology and growing availability of commercial storage, the business case for C&I solar has never been stronger. We also see large untapped potential in retrofitting existing commercial rooftops, many of which remain underutilized. Upcoming reforms – including Germany’s Solar Package 1 and EU-wide simplifications for permitting – will unlock even more momentum in this segment.
And how does the broader EU market compare?
Across Europe, the C&I segment is now the fastest-growing part of the solar market – in many countries even outpacing residential. In Spain and Portugal, high daytime tariffs are encouraging businesses to install PV for self-consumption. France is expanding programs for tertiary buildings, and countries like Austria and Belgium are ramping up incentives for solar in logistics and commercial zones. At the same time, there’s mounting pressure from investors, regulators, and supply chain partners for companies to decarbonize their operations. On-site solar and storage are among the most visible and cost-effective tools available for this purpose. From our point of view, it’s clear that customers are no longer just looking for hardware. They want bankable, end-to-end solutions: high-efficiency modules like Tiger Neo, integrated BESS, smart monitoring, and dependable service. That’s precisely what JinkoSolar delivers.
How important is a strong position in the German and European markets for JinkoSolar compared to China? How are demand and prices evolving there?
Germany and Europe more broadly are core strategic markets for Jinko. These regions value quality, reliability, and long-term partnerships – values that are fully aligned with our brand. Europe also serves as an innovation and policy hub, allowing us to stay at the forefront of new trends in decarbonization and digitalization. The Chinese market keeps on being the big growth engine for the global PV market with stable and growing installation volumes. Despite the strong demand from China the industry keeps on facing a very challenging overcapacity phase, which eventually must lead to a long-awaited industry consolidation. Module prices are at historical lows. The current module market price level is well below the actual production costs for many manufacturers, which is not sustainable. With over 1 TW of production capacity chasing roundabout 600 GW of annual global demand, the imbalance is putting immense pressure on the industry. Consolidation is urgently needed, and I expect some M&A activity along the entire value chain in the near to midterm, which will reduce the number of active players and help stabilize pricing over time.
We hear significant changes are underway in China affecting both PV system promotion and the industry. Can you comment?
Yes, China is undergoing a strategic transformation in both the deployment and manufacturing sides of the solar industry. On the policy side, the government is reassessing how national incentives are structured to avoid overcapacity and improve system efficiency. On the industrial side, efforts are being made to curb excess supply, encourage consolidation, and promote next-generation technology and sustainability standards. This is a healthy and necessary development. A more balanced and technology-driven solar industry will benefit everyone – from manufacturers to end users. At Jinko, we support reforms that contribute to a more stable, high-quality, and globally competitive solar sector.
Are you already preparing for the next phase with your products?
On the product side, we remain very confident in our n-type TOPCon technology, especially with the introduction of our new flagship product, Tiger Neo 3.0, launched at SNEC. This third-generation TOPCon module delivers 26.7% to 27% cell efficiency, 650 W to 670 W output per panel, and a bifacial factor of approximately 85%. Production began in June, and we are ramping up for mass availability through Q3 and Q4 2025. At the same time, we are also investing in next-generation technologies. We are currently testing perovskite/TOPCon tandem architecture, which has already surpassed 34% efficiency in certified laboratory environments. While still in R&D, these technologies show great promise and could represent the next leap in module performance. Meanwhile, we are also scaling up our energy storage portfolio, enhancing hybrid system design capabilities, and supporting clients across Europe with integrated, bankable solutions. The market is evolving – and so are we.
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