SNEC Shanghai Signals New Terms Of Engagement Between India, China

The mood at SNEC Shanghai was distinctly different this year. While calling it downbeat would be an exaggeration, the year-on-year expansion and energy one has come to expect was clearly missing from the 2025 edition.

Foreign visitor numbers were certainly down. However, it was interesting to see the smaller Indian contingent arrive with a noticeably different shopping list. From storage to cell manufacturing and other production-related equipment, the new Indian focus on manufacturing over finished products was evident. Conversations with multiple Chinese firms, both new and established, revealed palpable frustration over India's visa restrictions. Still, most shrugged off the challenges of compliance delays and certification hurdles. After all, domestic demand in China appears to have risen too, driven by recent policy changes.

While we did spot the occasional Indian heavyweight such as Avaada’s Vineet Mittal or Gautam Solar’s leadership team, the strength of existing relationships now allows much of the serious business to happen beyond the expo floor. For the more committed buyers, SNEC served as one checkpoint in an extended China visit that included factory tours and quality audits.

Solar Modules in the Shade

The solar modules section, usually the flashiest section of the expo, was conspicuously subdued. Crowds, noise, and giveaways were all at a low ebb this year. With the segment struggling under the weight of overcapacity and falling prices, job losses have thinned teams, and those remaining expect further consolidation and cost cuts. In short: more pain before a revival.

TOPCon, now mainstream, dominated the conversation, with Mono-Perc practically phased out in China.  But IBC is gaining ground rapidly. Meanwhile, any lingering hope for a major HJT surge remains largely wishful with its efficiency advantages are outweighed by cost barriers. The recent buzz around perovskite-based tandem cells, spurred by early moves from players like Trina, is exciting, but a commercial rollout could still be two years away.

Most of the top manufacturers with capacities exceeding 25 GW are focused on recouping recent investments in TOPCon before committing to any major shift.

Storage in the Spotlight

In contrast, energy storage emerged as this year’s star. The sector has taken over the space and attention once reserved for module giants.

Reports of Adani Group's strong interest in CATL heightened anticipation around the latter’s roadmap and expansion ambitions beyond China. Each year brings greater compactness and efficiency: today's 20-foot containers can hold over 6 MWh, up from just 1 MWh four years ago. AC output has climbed to nearly 1000V- music to the ears of developers eyeing large-scale deployments.

Even in the C&I segment, improved designs, aesthetics, and functionality continue to make storage a compelling companion to renewables. With major tenders entering procurement in India this year, the sector looks poised for rapid takeoff. Better still, prices remain competitive, and falling interest rates enhance returns. Between the emerging alternatives to LFP, solid-state batteries appear closer to commercialization than sodium-ion options, which may not enter serious consideration until 2028.

The big challenge for Indian firms? The massive lead Chinese firms enjoy on technology, production and raw materials supply, especially Lithium batteries. Finding a workaround for these without seeing prices spike will be the biggest challenge for all.

Inverters Follow Storage’s Lead

Inverter makers have aligned themselves with the shift to hybrid and storage-driven solutions. Firms like Sungrow showcased their integrated offerings, while others such as Solis focused on ensuring compatibility with top-tier storage vendors.

BIS certification has unexpectedly become a major competitive differentiator. While many manufacturers face delays in approvals, those who’ve secured BIS clearance now enjoy limited competition in the hybrid and storage space. One surprise: the scale of OEM deals between Chinese suppliers and Indian brands. Still, uncertainty looms large over growth prospects here too.

The New Rules

Over the past decade, India’s solar market has seesawed from being a voracious consumer of Chinese modules (till 2022), to a reduced-volume buyer now shifting focus to storage and manufacturing.

Interestingly, some Indian firms are even competing in the U.S. market, where Chinese presence is dwindling rapidly. The new Indian buyers aren't placing mega orders - they're looking to acquire know-how.

For Chinese firms, setting up manufacturing in India seems like the logical next stepbut remains entangled in political complexities. Meanwhile, Indian consumers may have to pay a premium for energy security, which few can afford at scale. A political breakthrough has never been more crucial to accelerate India's green transition.