Sinovoltaics, a technical compliance and quality assurance service firm from Hong Kong, recently published an insightful report on PV module manufacturers across the globe. The ranking encompasses a comprehensive list of 52 suppliers and is based on data ranging from June 2020 to December 2023, offering a unique perspective on the temporal stability of the manufacturers’ scores.
Developed using the Altmann Z-score methodology, the report introduces a quantitative measure of a company’s financial health, combining various factors such as profitability, leverage, liquidity, solvency, and activity ratios—all derived from public financial records.
“A surprising find from the report is that some of the leading names in the industry did not fare as well in the rankings, while lesser-known brands have showcased stronger financial health,” commented Niclas Weimar, CTO of Sinovoltaics, speaking to pv magazine.
A key highlight is the Altman Z-Score, a seasoned financial tool that predicts the likelihood of a company facing bankruptcy within two years, with scores below 1.1. Conversely, a score above 2.6 reflects a robust financial standing, positioning a company in good stead for sustainable operations.
At the top of the ranking sits Tainergy from China, followed by First Solar from the US, Eterbright Solar Corporation from Taiwan, and other celebrated names such as Mission Solar and ERA Solar Technology Co., Ltd. from China. Securing the next five spots are TSEC from Taiwan and four Chinese contenders—Longi, Tongwei, DMEGC, and Phono Solar.
The industry’s reception to Sinovoltaics’ rankings over time has been predominantly positive, acknowledged by manufacturers and industry stakeholders, including financial institutions which integrate these reports into their due diligence workflow.
“While our rankings don’t necessarily reflect the end-product quality, they offer invaluable insights into the fiscal robustness of PV manufacturers, which many financiers and buyers weigh heavily when selecting suppliers,” Weimar explained. Given the volatility and complexity of global financial landscapes, such transparency in assessing suppliers’ economic viability becomes crucial for informed decision making in the solar industry.
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