In 2023, against a backdrop of sustained strong global PV installation demand, the aluminum solar racking systems industry experienced rapid development. In terms of production data, domestic photovoltaic aluminum profile production in 2023 was estimated to reach approximately 4.01 million tons, a year-on-year increase of 63.67%. Among this, the annual output of aluminum solar racking reached 1.346 million tons, a significant year-on-year increase of 72.42%. This growth was mainly driven by the rapid development of the new energy sector, combined with continued strong downstream demand after silicon prices stabilized.

1. Strong Market Demand, Accelerated Capacity Expansion

In 2023, domestic PV installation demand was robust, and leading aluminum frame and racking profile companies maintained high operating rates in the third quarter. In terms of market structure, the photovoltaic aluminum profile industry is relatively concentrated, with major market share held by leading companies such as Xinbo Aluminum and Yongzhen Technology.

Antai New Energy achieved multiple breakthroughs in 2023. Its self-developed high-performance aluminum alloy received the grade designation 6A22, making the company the first PV racking manufacturer in the industry to own its own aluminum alloy grade. By the end of 2023, Antai New Energy's cumulative global shipments of PV racking reached 33.2 GW, and the company was named among the 2023 Global Top 500 New Energy Enterprises.

Xinbo Aluminum also performed strongly. In the first half of 2023, the company's operating revenue increased 37.61% year-on-year to RMB 2.82 billion; net profit attributable to shareholders increased 40.86% year-on-year to RMB 128 million. In November, Xinbo showcased its self-developed solar PV aluminum alloy racking at the 8th SNEC Shanghai International Energy Storage Exhibition. The product uses an innovative structural design suitable for various complex environmental conditions.

Yongzhen Technology saw its main board IPO application approved on September 26, with a planned fundraising amount of RMB 1.725 billion to be used for aluminum alloy PV frames and racking, as well as energy storage battery tray projects. The company's investment project in Fanchang has a total investment of RMB 8 billion, constructing a production line with an annual capacity of 380,000 tons of aluminum alloy PV frames, racking, and energy storage battery trays. After completion and operation, the project is expected to generate annual sales revenue of RMB 23 billion.

In terms of new capacity additions, several companies actively advanced project construction. Henan Conch Songji Company's second-phase 20,000-ton aluminum profile expansion project was fully put into trial operation on July 28, primarily for the production and processing of PV frames and racking. Fujian Weisheng New Energy's annual 10,000-ton aluminum alloy solar racking project, with a planned total investment of approximately RMB 200 million, was completed and put into operation in December, achieving an annual output value of over RMB 300 million upon reaching full capacity.

Regarding large-scale procurement, in October 2023, State Power Investment Corporation (SPIC) and China National Coal Group Corp. jointly procured PV racking with a total volume of 21.17251 GW, including various types such as fixed aluminum racking. A total of 25 companies were selected, demonstrating strong demand for aluminum racking from large energy enterprises.

2. Continuous Breakthroughs in Technological Innovation and Product Iteration

In 2023, the aluminum PV racking sector saw numerous highlights in product innovation and technology R&D.

Antai New Energy unveiled its "Taiyang Ding" full-aluminum BIPV full-scenario solution at the SNEC exhibition in May. The product uses self-developed high-performance aluminum alloy, featuring 100% waterproofing, light weight, high strength, super corrosion resistance, and long life, meeting various distributed application needs from new rooftops to old factories. Also launched was an intelligent cleaning and maintenance system equipped with AI semantic vision technology, achieving a cleanliness level of SCP4, effectively increasing power generation by 8-20%.

Qing Aluminum successfully trial-produced full-aluminum PV racking on August 16. Compared with steel PV racking, aluminum racking offers advantages such as light weight, high strength, corrosion resistance, ease of processing, aesthetics, and recyclability. It can withstand high wind pressure and snow loads while resisting corrosion from chemicals such as acids and alkalis.

At international exhibitions, several Chinese companies demonstrated their technological strength. In June, Mibet New Energy launched its fifth-generation floating PV system G5 at Intersolar Europe in Germany. The system uses high-density polyethylene full-plastic floats and aluminum alloy rails, with environmentally friendly materials that are easy to recycle, enhancing economic benefits. GS Solar also introduced multiple new products at the same exhibition, including its balcony solar racking, and signed major strategic cooperation letters of intent with several well-known European companies.

3. Favorable Policy Environment

In 2023, the Chinese government issued intensive policies at the national level to support the PV industry development. The National Energy Administration released the "2023 Energy Work Guidance Opinion," proposing to consolidate the advantages of wind power and photovoltaic development and continuously expand clean and low-carbon energy supply. Four ministries, including the Ministry of Industry and Information Technology, issued the "New Industry Standardization Leading Project Implementation Plan (2023-2035)", which requires the development of new energy generation standards including photovoltaic power generation and solar thermal power generation in the new energy sector.

Looking at policy evolution, the central government has moved from requiring active development of solar energy and other new energy sources during the "11th Five-Year Plan" period to explicitly advocating a development model combining centralized and distributed energy sources and vigorously increasing PV power generation scale during the "14th Five-Year Plan" period. These policies are conducive to the development of the PV power generation market, thereby driving increasing market demand for PV racking. Driven by favorable policies, the China Commercial Industry Research Institute predicts that China's PV racking market size will reach RMB 21 billion in 2023 and grow to RMB 25.3 billion in 2024.

Meanwhile, the advancement of environmental concepts has led to a gradual shift in PV racking from steel products to aluminum profiles, with aluminum alloys becoming increasingly prominent in this field.

4. International Trade Risks to Monitor

In December 2023, the U.S. Department of Commerce considered imposing anti-dumping and countervailing duties on aluminum profiles imported from China and 14 other countries. The American Solar Energy Industries Association expressed concern, stating that these investigations could impose tariffs on key products for the solar industry, potentially conflicting with the goals of the Inflation Reduction Act to encourage domestic clean energy investment in the United States.

The U.S. Department of Commerce was expected to announce preliminary countervailing duty determinations on December 28. This trade policy development has introduced some uncertainty for the export prospects of Chinese aluminum PV racking.