Jiangsu Linyang Energy Co Ltd

After the implementation of Document 136 on market-based pricing for new energy grid tariffs, the fixed-income model that distributed solar had long relied on has collapsed, pushing the industry into a painful adjustment period. A survey in Jiangsu found that investment enthusiasm has cooled due to electricity price fluctuations, adjustments to time-of-use tariffs, and curtailment. In the first quarter of 2026, the province added 2.281 gigawatts of new distributed solar capacity, a year-on-year decline of 51.33 percent. Shen Chao, head of strategic development at Trina Solar Home, said that the difficulty in accurately forecasting mechanism-based and spot electricity prices has directly hit market confidence. Some investment institutions have already suspended new projects, squeezing profits in the EPC segment, while existing commercial and industrial projects face contract default risks due to midday price troughs. The industry is accelerating a shift toward high-consumption scenarios and aggregated trading through virtual power plants, using specialized trading operations to hedge against revenue uncertainty, while also expanding into wind power, energy storage, and energy-saving retrofits to seek new growth opportunities.