JinkoSolar Sees ‘Cautious’ Solar PV Expansion Amid Possible Glut

  • Company plans to raise panel production capacity by 28%
  • Panel shipments expected to rise as much as 44% in 2016

JinkoSolar Holding Co., the photovoltaic maker that has shipped the most panels this year, said demand for its top-branded products is prompting it to expand capacity even as a potential supply glut looms over the industry in the second half of the year.

"We are very cautious in expansion," said JinkoSolar Chief Executive Officer Chen Kangping in an interview, adding that the company expects to raise internal capacity by 28 percent, or as many as 5.5 gigawatts by year end. “It won’t be a challenge for JinkoSolar even if there’s a loose supply.”

A growing solar market has prompted manufactures to build up more capacity. The top three panel suppliers including Trina Solar Ltd., JinkoSolar and Canadian Solar Inc. are seeking to expand production capacity by almost 32 percent by the end of this year from a year earlier, according to data compiled by Bloomberg. Solar installations globally may increase at least 15 percent in 2016 from a year earlier, Bloomberg New Energy Finance estimates.

JinkoSolar said last month it expects to deliver as many as 6.5 gigawatts of solar panels in 2016, an increase of 44 percent from 2015. Orders exceeding its internal production capacity will be met by original equipment manufacturers chosen by JinkoSolar, said Chen.

JinkoSolar is seeing rising demand coming not only from China and the U.S. but also from emerging markets including Chile, Mexico, Brazil and Argentina, the CEO said.

— With assistance by Feifei Shen

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