From SNEC 2026: Key Points of China's Solar Energy Industry Development

EquitiesEnergy Equipment &Services Takeaways from SNEC 2026 China ◆Space-based solar products still a niche segment, residentialESS drew the most attention; solar supply chain was quiet Daniel Yang*Analyst, Asia Energy TransitionThe Hongkong and Shanghai Banking Corporation Limiteddaniel.h.yang@hsbc.com.hk+852 299 66976 ◆Solar equipment exportsarestillrestrictedasmostcompanies wait rather thanseekanSEAsiaworkaround Evan Li*Head, Asia Energy Transition ResearchThe Hongkong and Shanghai Banking Corporation Limitedevan.m.h.li@hsbc.com.hk ◆SST products for AIDCareemergingasthenextkey Corey Chan* (Reg. No. S1700518100001)Head, A-share Industrials & Renewables ResearchHSBC Qianhai Securities Limitedcorey.chan@hsbcqh.com.cn Key takeaways:We attended SNEC in Shanghai on 3–4 June, meeting withinvestors and engaging with leading solar companies across space solar, residentialenergy storage systems (ESS),inverters and related segments. Below are our key Lucille Tang*AssociateGuangzhou Space solar:Still niche at SNEC,but positioned as‘flagship’by exhibitors.Solar-cell technology is shifting beyond GaAs towards silicon and tandem.Lightweight covers, such asspacecolourlesspolymide film (SCPI),are a key * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and isnot registered/ qualified pursuant to FINRA regulations ◆Solar equipment:Near-term outlook is driven more bypolicyclarityorenforcementthan end-demand. Mostcompaniesdownplayed US exportexposure and rejectedexporting viaSoutheast Asiaas a workaround. They ◆Residential solar + ESS:One of thehighest-trafficsegments. Hardware iscommoditising, shifting differentiation tochannelsand software/service.AI-enabled energy managementis becoming baseline, andall-in-oneintegrated AIDC & compute/power integration:‘Green power for AIDC’was a majortheme, with ecosystem focus onDC couplingand system-level integration.Solid-state transformers (SST)are emerging as a key battleground, but deployment is Solar supply chain:Noticeably quieter versus storage/AIDC. Pricing remainsunderpressure and segmented.Cost pass-through is uneven (tax rebatechanges partly passed,silver inflation harder), reinforcing‘optimise/retrofit’over Energy storage:Remains the highest-attention growth narrativeofsomecompanies.C&I storageis gaining share with improving pipeline stability,whileutility-scaleis more crowded and price-competitive, pushing some to Issuer of report:The Hongkong and ShanghaiBanking Corporation Limited Disclosures & Disclaimer This report must be read with the disclosures and theanalyst certifications inthe Disclosure appendix, and with the Disclaimer, which forms part of it. View HSBC Global Investment Research at:https://www.research.hsbc.com Takeaways from SNEC 2026 WeparticipatedinSNEC in Shanghai on 3-4 June to visit some of the leading solar companies.Belowis asummary ofthediscussions with companymanagement, expertsand investors we Space solar ◆Space-based solar product demonstration:The number of exhibitors explicitly focused onspace solar was relatively limited, but thosethatdid showspace-related products tended to ◆Technology direction:Industry discussion is moving beyond GaAs-only dependencetowardssilicon-based flexible solutions and tandem concepts(e.g., silicon + perovskite), ◆Lightweight materials as a differentiator:A recurring theme was replacing traditionalglass cover layers (often cited aroundc110 μm) with ultra-thin polymer/film-based covers(