A surge in market enthusiasm, driven by Elon Musk's recent endorsements, has propelled the photovoltaic sector's market value upward by over 200 billion yuan. At a time when AI and semiconductor technologies have dominated market trends, the focus has unexpectedly shifted to solar power, with the concept of space-based solar energy capturing significant investor interest. Musk has been a key catalyst for this capital market frenzy.
Following Musk's public support for space solar power and his team's investigations into China's photovoltaic supply chain, A-share solar stocks have already experienced substantial gains. Recent developments indicate that companies under Musk's umbrella are increasing their investments in solar manufacturing. Influenced by these reports, the photovoltaic sector surged again on February 9, with companies like GCL System Integration Technology hitting a four-day limit-up streak, and other industry leaders such as TCL Zhonghuan and Aiko Solar also reaching their daily upper limits.
Calculations show that since the space solar concept gained traction on January 23, the collective market capitalization of A-share photovoltaic companies has rebounded by more than 200 billion yuan by February 9.
In recent years, the photovoltaic industry has entered a phase of overcapacity, with anti-internal competition becoming a recurring theme. After intense competition in terrestrial solar projects, future growth potential has been largely exhausted. According to forecasts from the China Photovoltaic Industry Association, new solar installations in China for the current year are projected to be between 180 and 240 GW, representing a year-on-year decline of 23.81% to 42.86%. This indicates a slowdown in the industry's growth rate from an end-user perspective.
Industry insiders suggest that with terrestrial solar capacity exceeding demand, finding new growth avenues has become imperative. The emergence of space-based solar power presents a timely opportunity. Additionally, expanding market needs in areas like commercial spaceflight are providing core driving forces for the development of space solar energy.
However, the prospects for space solar power must be approached with caution, as it presents both opportunities and challenges. Currently, the technology is in its early exploratory stages, and its industrialization is influenced by multiple factors including technological advancements, industry policies, and market conditions. Overall, Musk's endorsement has opened up imaginative possibilities for the space solar industry.
On February 9, the photovoltaic sector continued its upward trajectory, with active rotations in BC battery, perovskite battery, and TOPCon battery segments, creating noticeable profit opportunities for investors. By the market close, several leading photovoltaic equipment stocks had hit their daily limit-up prices.
Reports citing informed sources indicate that Tesla Motors is evaluating sites across the United States to expand its solar cell manufacturing operations. This has led to market expectations that leading Chinese equipment manufacturers, known for their efficient iteration and rapid response capabilities, could potentially enter the supply chains of Tesla and SpaceX, thereby opening new growth avenues for the sector.
The concept of space-based solar power involves deploying large-scale solar power stations in space to convert solar energy into electricity, which can then be transmitted back to Earth via microwaves or lasers, or used directly to power satellites, space stations, or future lunar/Mars bases. Compared to terrestrial solar power, space-based systems offer inherent advantages such as continuous operation without day-night cycles, immunity to weather disruptions, and higher light intensity.
After Musk advocated for space solar power at the World Economic Forum in Davos on January 22, A-share photovoltaic stocks collectively surged on January 23. Following a period of significant gains, the sector experienced a minor correction. However, rumors regarding Musk's team assessing Chinese photovoltaic companies rekindled market excitement in early February, leading to another rally on February 4.
Amid the soaring stock prices, companies are exercising caution. Some firms have issued risk warnings, clarifying that they have not yet received any orders related to space solar power and that the concept has not materially impacted their financial performance. For instance, Trina Solar disclosed that while it has technological layouts in areas like gallium arsenide, crystalline silicon, and perovskite tandem cells for space applications, it currently has no related order income.
Behind corporate concerns lies the industry's ongoing challenges. The photovoltaic sector is undergoing a profound adjustment phase, with unresolved supply-demand imbalances posing significant operational difficulties for many companies. This is reflected in the 2025 performance forecasts of A-share photovoltaic firms, where a majority anticipate net losses.
Against the backdrop of terrestrial solar overcapacity, the search for new growth drivers has become critical, making the emergence of space solar power particularly timely. While industry players are keen to capitalize on this new trend, many leading companies have noted that space solar technology remains in its nascent stages, and its commercial application and industrialization will require considerable time.
Analysts from CITIC Securities argue that the viability of a technology depends on genuine demand, engineering feasibility, and commercial sustainability—criteria that space solar power is beginning to meet. However, widespread adoption will depend on overcoming technical, cost, and industrial chain challenges. Experts suggest that with advancements in commercial spaceflight and photovoltaic technologies, space-based solar energy could become a new growth area for Chinese solar companies.
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