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The global photovoltaic market is entering a period of adjustment after several years of manufacturing overcapacity that heavily pressured solar module prices. The industry is now beginning a process of restructuring, largely driven by decisions taken within China.
“Until recently, production capacity was three times higher than international demand, so we were seeing somewhat artificial price declines that were not aligned with the sustainability of the industry,” said Luis Contreras, Managing Director of Yingli Solar, during an exclusive interview at Future Energy Summit (FES) Iberia 2026.
In response to this scenario, Asian manufacturers have started implementing measures to rebalance the market, including limiting new production expansions and shutting down certain manufacturing lines.

“The Chinese industry has stepped in to ensure a sustainable balance between supply and demand,” the executive explained.
One of the most significant changes in this process is the elimination of China’s 9% export tax rebate for solar modules, a benefit that for years contributed to lowering international prices.
“That export incentive is being removed, and that 9% will become an additional cost starting April 1,” Contreras noted.
The market restructuring is also being influenced by tensions in the supply chain and rising costs of several key raw materials used in panel manufacturing.
“The supply chain — mainly polysilicon, wafers and cells — has seen cost increases, and some materials such as silver have also become more expensive,” detailed the Managing Director of Yingli Solar.
This is compounded by new international requirements linked to traceability and carbon footprint standards, particularly in markets such as Europe and the United States.
“All those international standards come at a cost, so they have also contributed to bringing more order to the industry,” he explained.
While the global market rebalances, Spain continues to consolidate its position as one of Europe’s most mature solar markets, although it now faces new challenges related to technological integration.
“Spain has the operational experience, the solar resource, the EPC contractors and the available technology to enable the deployment of hybrid photovoltaic projects combined with battery storage,” Contreras said.
The executive added that although the sector expected faster growth, the integration of storage will gradually strengthen within the utility-scale segment.
“Growth will come through hybridisation in utility-scale projects, perhaps not with the expectations set by the PNIEC or parts of the sector, but in a somewhat more moderate way,” he stated.
At the same time, other market segments will continue to play a role in photovoltaic development, particularly residential and commercial and industrial installations linked to self-consumption.
In this new scenario, Yingli Solar continues to focus its strategy on technological efficiency as its main competitive tool, betting on modules based on N-Type TOPCon technology.
“We work with N-Type TOPCon technology modules, where we have greater manufacturing experience and where we can offer stronger technological value to the market,” he explained.
According to the executive, the relationship between technological performance and economic competitiveness will remain key to the viability of solar projects.
“Performance relative to price is what allows financial models to work, which ultimately is what enables projects to move forward,” he concluded.
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