The global solar photovoltaic (PV) market is experiencing a new shift in demand dynamics as fiscal changes in China trigger a wave of early module purchases from developers and distributors worldwide.
Starting in April, China is expected to eliminate a value-added tax (VAT) rebate on solar module exports, prompting many buyers to secure equipment earlier in order to take advantage of lower prices before the policy change.
“As the VAT rebate in China will be removed in April, there was a strong spike in demand in March because many buyers wanted to benefit from the discounted prices,” said Marcos Donzino, Head of Sales South America at JA Solar, during the Future Energy Summit (FES) Argentina, which gathered more than 600 executives and energy sector specialists.
The adjustment comes after several months of unexpected price increases in the global solar supply chain.
“Everyone has seen the increase in module prices since December. It was somewhat unexpected because the industry had become used to solar panels becoming more competitive every year,” Donzino explained.
According to the executive, the solar manufacturing market is highly sensitive to regulatory and economic shocks, which can quickly alter supply-demand balances.
“It’s a very volatile market and highly exposed to political or economic changes. What we are seeing now is a shift toward a tighter supply environment and a stronger focus on efficiency, not just price,” he added.
In response to these market dynamics, JA Solar is focusing its product strategy on TOPCon (Tunnel Oxide Passivated Contact) technology, a new generation of high-efficiency solar cells designed to improve energy output without requiring major changes in project design.
The technology allows developers to increase generation performance while maintaining module dimensions and operational characteristics compatible with existing solar plant layouts.
“Our goal is to reduce risk for developers and investors, because ultimately every energy project carries a certain level of risk,” Donzino noted.
The adoption of higher-efficiency technologies is becoming increasingly important as project developers seek to optimize levelized cost of electricity (LCOE) while managing volatility in equipment prices and supply chains.
Energy storage gains momentum in Argentina
Beyond global supply trends, Donzino highlighted that energy storage is becoming a key component of renewable energy development in Argentina, particularly as a complement to utility-scale solar projects.
One of the main drivers is the difference in development timelines between transmission infrastructure and battery energy storage systems (BESS).
Large transmission projects can take years to complete, while storage systems can be deployed more quickly to help balance intermittent renewable generation.
“All intermittent renewable sources tend to inject large volumes of electricity around midday, so storage can provide greater reliability and improve project profitability,” Donzino said.
The executive also pointed to growing interest in distributed energy solutions in the commercial and industrial (C&I) segment, where companies are increasingly seeking ways to optimize electricity consumption through on-site solar generation and battery storage.
As electricity markets evolve toward time-of-use pricing and more dynamic tariff structures, these technologies could enable new business models linked to energy management and trading.
“There will be significant opportunities for energy trading once markets evolve toward hourly pricing schemes similar to those already implemented in Chile,” he explained.
Latin America expansion strategy
JA Solar is seeking to strengthen its position in Latin America by leveraging its vertically integrated photovoltaic supply chain, which spans from silicon production and ingots to wafers, solar cells and finished modules.
The company currently holds approximately 14% share of the global solar module market and continues to expand its commercial footprint across the region.
In Latin America, JA Solar already operates with a team of around 40 professionals supporting project development and sales, reflecting growing demand for solar technologies across emerging markets.
According to Donzino, Argentina’s solar sector is also beginning to show stronger momentum after several years of slower deployment compared to neighboring countries.
“Argentina is no longer as far behind Chile as it once was in terms of large-scale solar PV installations,” he concluded.
