Solar Market and Cost Analysis

Margins 50% 40% 30% 20% 10% 0% -10% -20% -30% -40% PV Manufacturers' Margins gross median operating median Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q102 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2016 2017 2018 2019 2020 2021 2022 • • • • PV manufacturers, mostly Chinese companies, have generally been profitable since 2019. Since 2021, the median gross margin of the publicly traded PV companies represented to the left has been 12%-16% and the median operating margin has been 1%-5%. There continues to be significant variation by individual companies as individual factors come into play, although variation has been substantially less since 2019. Companies continue to expand manufacturing, with Tongwei, LONGI, JinkoSolar, and Canadian Solar having reached, or reaching, 50 GW - 100 GW of wafer, cell, and module manufacturing, each in 2022 and 2023. Lines represent the median, with error bars representing 80th and 20th percentiles for the following companies in Q1 2022: Canadian Solar, First Solar, JA Solar, Jinko Solar, LONGI, Maxeon, Motech Industries, REC Silicon, Renesola, Risen, Shanghai Aiko, Shanghai Aerospace, Tongwei, Trina Solar, and United Renewable Energy. Margin data from Hanwha Q Cells, Sunpower, and Yingli are also included from Q1 2010 to Q1 2022 where available. Note: Gross margin = revenue - cost of goods sold (i.e., the money a company retains after incurring the direct costs associated with producing the goods or services it sells); operating margin = gross margin minus overhead and operating expenses (i.e., the money a company retains before taxes and financing expenses). Sources: Company figures based on public filings and finance.yahoo.com; PVTech (10/11/22). NREL 31

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