Chinese manufacturers eye solar tracker market gains amid US policy shakeups

Chinese manufacturers said recent policy changes in the US have created a valuable window to expand their shares in the global solar tracker market, a sector where the US and China have fiercely competed in recent years.

Despite easing trade tension between the world's two largest economies, their intense competition in the cleantech sectors remains unabated. While China dominates global markets for various solar products, solar trackers -- one of the most advanced solar technologies -- remain an exception.

In 2023, the top four tracker suppliers by shipment volumes were US companies: Nextracker, Array Technologies, GameChange Solar and PV Hardware, according to Platts data. Chinese manufacturers Arctech Solar and TrinaTracker ranked fifth and sixth, respectively, Platts data showed.

However, Wood Mackenzie's latest report, published June 10, revealed that Arctech Solar has become the world's second-largest supplier by 2024 shipment volumes, trailing only Nextracker and surpassing other US companies. TrinaTracker maintained its sixth position, ranking behind Arctech and the four leading US firms.

"The US companies used to import raw materials and components from the rest of the world, especially China, to make their solar trackers, but the tariffs, no matter what the final rates are, will significantly push up their manufacturing costs. Notably, the Trump administration has not only increased tariffs on solar products but also aluminum and steel," a source from the leading Chinese companies told Platts, part of S&P Global Commodity Insights.

"Based on our statistics in March (2025), the unit cost, namely dollars-per-watt cost, for made-in-China trackers was already about 10% lower than that of our US competitors. That was even before the US-China tariff war broke out," the source added, without disclosing the unit cost.

"We will become even more cost-competitive given all the disruptions in our competitors' home market. Obviously, China's solar industry has also experienced challenges. We must increase our shares in global markets, so as to utilize our capacities and maintain our profitability. Tracker products are definitely one of the better ones in terms of prices," another source from the leading Chinese companies said.

The source explained that, compared with conventional solar modules, trackers can automatically detect and adapt to extreme weather conditions, such as strong winds, heavy rains and snow.

"Tracker products have become increasingly popular for projects in desert and tidal flat areas because of their greater performance amid extreme weather conditions. Trackers have been adopted by mega-base projects in the west of China as well as some projects in Middle East countries, like Saudi Arabia and Qatar," the source added.

Arctech recently secured a deal to supply trackers with a total capacity of 1 GW to two projects in Azerbaijan, local media reported June 6. Earlier, in February 2025, TrinaTracker signed an agreement with Saudi Arabia's government to build a tracker factory in Jeddah with an annual production capacity of 3 GW, according to local media.

US companies' challenges

752 GW of solar trackers are expected to be installed between 2024 and 2030, with North America accounting for 39%, EMEA accounting for 31%, and Asia-Pacific accounting for 22%, Platts forecasts showed.

Liam Coman, a solar market analyst with Commodity Insights, said US-owned tracker companies are becoming less cost-competitive. "US-owned companies use a mix of US and non-US steel and components for [trackers] shipped to international markets. Non-US components shipped to the US for tracker assembly, before being exported, will now be more expensive," he said.

Coman noted that electronics used in trackers, primarily sourced from China, are the most exposed to cost increases.

However, he emphasized that US-owned products are viewed by market participants as premium solutions, which helps them retain competitiveness despite rising costs.

Coman added that, in non-US markets, cost differences may give Chinese and European companies an edge.

For US companies, the biggest challenge is shrinking demand in their home market, Coman said. He explained that the rollback of the Inflation Reduction Act (IRA) and cleantech incentives in the US would impact all US tracker companies, as local project developers would face pressure from phased-out incentives and increased equipment costs.

Chinese sources told Platts that US manufacturers, who previously imported components and raw materials from China, are now attempting to establish local supply chains for trackers. However, this effort may require significant time and incur substantial capital costs.