More than 90% of major Chinese solar PV manufacturers are reporting net losses, according to the latest report from the International Energy Agency (IEA).

In a chapter covering renewable manufacturing supply chains in its report Renewables 2026, IEA says higher solar module prices, which are now up 10-30% on 2025 levels, have not been enough to restore profitability in the Chinese solar manufacturing sector.

The cumulative net loss of major Chinese solar manufacturers and polysilicon producers increased from around $4.4 billion in 2024 to almost $5.5 billion last year, the report says, with over 70 companies filing for bankruptcy or liquidation since 2024.

It adds that while net margins have stayed negative through the first three quarters of 2026, there are signs that losses are stabilising.

“In recent quarters, the middle 50% of analysed companies reported net margins between -5% and -15%, a narrower range than the 0% to -30% recorded in 2024,” the report explains, while adding that improvements have been concentrated among companies diversifying into higher-margin business segments such as energy storage system integration.

Despite ongoing consolidation, IEA’s report predicts solar supply chains will remain highly concentrated in China through to 2031, particularly for polysilicon and wafer production.

The agency expects the consolidation phase to favour manufacturers with stronger balance sheets, higher-quality capacity and more competitive technology portfolios, in turn accelerating the exit or absorption of weaker producers. The report predicts the impact of consolidation will vary across the supply chain, with upstream segments having to adjust more as they currently account for the majority of excess manufacturing capacity in China.

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