Breakthrough Strategies of a Second-Tier Solar PV Manufacturer

In May, a banner reading “Fighting for 30 Days” was displayed at the entrance of the component workshop of Anhui Huasheng New Energy Technology Co., Ltd. (referred to as “Huasheng New Energy”). A representative from the marketing department explained that this was in response to a surge in demand following the implementation of the “531 policy,” and the company was gradually returning to full production capacity.

Once a rising star in the industry, Huasheng New Energy achieved operational profitability in 2023, primarily focusing on HJT (Heterojunction Technology). The company secured over 4 billion yuan in financing that year, bringing its total funding to over 5 billion yuan within three years. However, in 2024, the photovoltaic (PV) industry faced significant challenges due to drastic price declines across the entire supply chain. While leading PV enterprises struggled with production cuts and layoffs, second-tier companies like Huasheng New Energy encountered even greater existential threats.

In response, Huasheng New Energy implemented several strategic adjustments, including reducing production, joining industry alliances, modifying technology, and exploring new market opportunities. A marketing representative noted that at the end of last year, Huasheng New Energy collaborated with other HJT manufacturers to establish the “740W+ Club” (now renamed the “760W+ Club”), aiming to collaboratively address the competitive pressures within the industry.

According to data from Infolink, HJT manufacturers have successfully stabilized prices around 0.85 yuan/W, while prices for TOPCon (Tunnel Oxide Passivated Contact) and BC (Back Contact) technologies continue to decline. This stabilization reflects the effectiveness of the “760W+ Club.” Alongside price stabilization, Huasheng New Energy is also seeking new application scenarios that differ from TOPCon and BC technologies. The marketing representative indicated that since Huasheng New Energy focuses on HJT technology, some investors are still willing to support it, and the company has completed preparations for further financing.

In March 2024, ten domestic PV enterprises utilizing HJT technology (now totaling thirteen) convened in Shanghai to establish the “740W+ Club.” The club’s initial objectives included integrating the industry supply chain, enhancing brand identity, fostering technological collaboration, and expanding sales markets. This collaboration allows members to share resources in research, production, and sales, thus achieving cost reduction and efficiency improvement.

To coordinate actions among its members, the club holds monthly roundtable meetings, with one member acting as the rotating chair. Executives from each company attend these meetings to discuss industry insights. The marketing representative shared that the sales departments collaborate weekly to assess the current market situation for PV components and prepare subsequent action plans. Additionally, the technical research departments work together to align on the development trajectory of HJT technology based on shared research outcomes.

Members of the club also engage in unified procurement to lower costs. During past roundtable discussions, various topics have been addressed, including 0BB (no busbar) solutions, marketing strategies, supply chain cost reduction, intellectual property risks, electricity pricing policies, and overseas markets. Thanks to these collaborative efforts, starting last year, large state-owned enterprises have begun to segregate HJT segments in their bidding projects, allowing only HJT products to bid, thereby providing a dedicated space for HJT technology.

Reportedly, the bidding capacity for HJT components reached 13.56 GW in 2024, marking a 333% increase year-on-year, with HJT components priced slightly higher than TOPCon products. For every penny increase in price, HJT manufacturers can earn an additional 135.6 million yuan. An industry insider indicated that achieving an annual shipment of 25 GW to 30 GW of HJT products would ensure stable industry growth.

On May 23, Xu Xiaohua, at Huasheng’s hosted dialogue program, stated, “I believe that TOPCon, BC, and HJT technologies will coexist in the long term. While there are minor differences in conversion efficiency and cost, the real differentiator will depend on customer needs and unique competitive advantages.” HJT’s strengths lie in its high power and bifacial efficiency. Currently, Huasheng New Energy’s mainstream HJT components have a power output of around 730W, which is 10W to 20W higher than TOPCon products, and have a bifacial efficiency exceeding 10%.

As a result, HJT components are priced higher, with centralized power station projects pricing TOPCon at approximately 0.67 to 0.70 yuan/W and HJT at about 0.73 to 0.75 yuan/W. However, the production costs of HJT are also higher than those of TOPCon products. Currently, Huasheng New Energy is transitioning its component workshop from SMBB (Multi-Busbar) to 0BB technology in an effort to reduce costs. The 0BB technology represents a new direction for the PV industry, aimed at implementation by mid-2024.

Through the adoption of 0BB technology, PV manufacturers can save silver paste, lower costs, and improve product conversion efficiency. “By upgrading our equipment, we are now able to match the production costs of TOPCon,” stated Xing Zhou, Vice President of Huasheng New Energy. Beyond technical advancements, Huasheng New Energy is also exploring new market spaces.

Near Huasheng New Energy’s headquarters in Xuancheng, a unique PV component demonstration power station has been established. Unlike other enterprises, the photovoltaic panels in this station are installed vertically rather than at an angle. The marketing representative explained that this station occupies about 2000 square meters, with blueberry plants cultivated between every two rows of photovoltaic panels. “The bifacial efficiency of HJT components can exceed 90%, potentially approaching 100%. Vertical installation maximizes the benefits of high bifacial efficiency while significantly reducing land usage and not hindering crop growth. Vertical generation could be the most promising market following the ‘531 policy,’ as increasing PV installations elevate midday generation peaks, stressing the grid; vertical installations can effectively optimize generation curves and mitigate peaks,” the representative noted.

Huasheng New Energy has established a dedicated solutions department to promote vertical generation, and awareness of this innovative model is rapidly increasing in the market. Additionally, Huasheng New Energy has developed corresponding channel strategies both domestically and internationally. Leveraging the low-carbon attributes of HJT and its proprietary patents, the company plans to intensify efforts to expand in both domestic and overseas markets in the latter half of the year.

According to the technology manager at Huasheng New Energy, the current carbon footprint of HJT is approximately 366 gCO2eq/W, with the goal of reducing it to below 300 gCO2eq/W. Since last year, the patent disputes in the PV industry have intensified, especially in international markets. The marketing representative emphasized that Huasheng New Energy holds 100% of its HJT patents, mitigating the risks of patent infringement and enabling the company to attract certain clients. With many businesses opting to expand HJT capacity instead of TOPCon or BC due to concerns over infringement risks, the market share of HJT is expected to gradually rise.

Xu Xiaohua remarked that the true turning point for the industry will be who first achieves the stacking of silicon and perovskite. “We anticipate reaching this milestone between 2028 and 2030, and we aim to establish this technology as a large-scale experimental platform for the entire industry to collectively advance technological progress,” he added.