Cell and Module Technology Market OverviewPV InfoLink Senior Analyst, Derek Zhao, Dec.2021

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• The huge volume of existing PERC capacities can be upgraded to TOPCon to enhance cell efficiencies. SeveralTier-1 manufacturers have halted PERC capacity expansion; they will mostly expand TOPCon in the future. PVInfoLink projects that overall n-type capacity will make significant progress next year.

• TOPCon capacity is expected to grow at a faster pace, with its cumulative capacity exceeding 80 GW by the end of2023.

• The pace of n-type cell technology development depends on its costs and efficiency as compared with PERC.

6.3 10.4 37.4

80.7 14

20

62

124

0

50

100

150

2020 2021 F 2022 F 2023 F

Forecast for n-type capacity by technique, Unit: GW

PERT TOPCon HJT IBC HBC Total

3.0 3.3 11.5

24.4

0

10

20

30

40

2020 2021 F 2022 F 2023 F

Forecast for n-type production by technique, Unit: GW

PERT TOPCon HJT IBC HBC

Forecast for n-type high efficiency cell capacity

Source: PV InfoLink New Technology Market Report

If n-type technology can drive efficiency up and costs down and control yield rate well, Its long-term growth will be better than expected.

2,400 1,000 1,600 600 500 400 150 300 250 1,000 50 30 150

1,500

1,000 1,000 250 1,000

8,000

10,500

8,000

3,500 2,000

23.8%24.0% 24.0%

23.7%

24.0%

23.6%23.7% 23.7% 23.7%

22.0%

22.5%

23.0%

23.5%

24.0%

24.5%

0

5,000

10,000

15,000

MP MP MP MP MP MP MP Trial Run Move-in Move-in Move-in R&D R&D Planning Planning Planning Planning

Jolywood Jinko LGE QCELLS Trina SPIC REC Tongwei Dasolar Suntech BYD JA Motech Jietai Longi Chint Popsolar

2022F TOPCon Capacity and Eff., Unit: MW ; % Existing Capacity 2021 Planned 2022 Planned Current Eff. % (MP)

TOPCon production status

Source: PV InfoLink New Technology Market Report

25.4% by Jinko(163.75)-Jet

25.4% by Jolywood(182)-中国计量23.7%-24% ＞25GW

Champion Efficiency MP Efficiency 2022F installed Cap. Expanding speed

Faster than HJT

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TOPCon Process Overview

Thermal: SiOxLPCVD: i-Poly-Si

PECVD: SiOxPVD: n-Poly-Si

Ion injectionPh Diffusion

Texture

Diffusion(Boron)

BSG etch& Rear side polishing

Annealing Texture Wraparound

Annealing

PEALD: SiOxPECVD: n-Poly-Si

Texture Wraparound

Annealing

PECVD: SiOxPECVD: n-Poly-Si

Texture Wraparound

Annealing

Thermal: SiOxLPCVD: n-Poly-Si

Texture Wraparound

Annealing

Screen print

Firing

Front: AlOx

Front: SiNx

Back: SiNx

□√ BCl3BBr3□√

Laplace, SEMCO, S.C., Polar, Naura, etc.Good Passivation but with wraparound issue

Laplace, SEMCO, S.C., Polar, Naura, etc.Good passivation but with low yield

LeadmicroHigh yield and low wraparound issue but with thickness uniformity concern

S.C., JinchenHigh yield and low wraparound issue but with thickness uniformity concern

JtechNo wraparound issue but just as good passivation

Tunnel Oxide+ n-Poly-Si

4

(RMB) Mono PERC Mono PERC Mono PERC N TOPCon HJT

Wafer TypeM6

(165µm)M10

(165µm)G12 - 55pcs

(170µm)M6

(160µm)M6

(150µm)

Wafer Area ( cm² ) 274.15 330.15 440.96 274.15 274.15

Cell Efficiency ( % ) 23.0 22.9 22.8 23.7 24.0

Cell Power Output(W/pc) 6.31 7.56 10.05 6.50 6.58

CTM loss (%) 0.0 0.0 0.0 1.0 2.0

72/55-cell Module Power Output (W) 450 540 550 460 470

Wafer price (￥/pc) 0.795 0.950 1.258 0.845 0.831

Wafer price(￥/W) 0.126 0.126 0.125 0.130 0.126

Cell Cost(￥/W) 0.157 0.155 0.154 0.172 0.202

Cell Price(￥/W) 0.152 0.159 0.155 0.180 0.200

Gross margin of cell ( % ) (2.8) 2.8 0.4 4.8 (0.9)

Module Cost(￥/W) 0.257 0.251 0.251 0.272 0.303

Module Cost(￥/W)buy cell 0.253 0.256 0.252 0.281 0.301

Moule Price(￥/W) 0.278 0.282 0.282 0.292 0.306

Gross margin of module ( % ) 8.0 12.2 12.4 7.1 0.8

GM of module ( % ) buy cell 9.8 10.3 12.1 3.9 1.4

Updated: November 2021

Cost and profit analysis of cell technologies (USD)

PERC modules applying half-cut and high-density layout have reached maturity, incurred no CTM loss and even have power gain. N-type technology, on the other hand, still has CTM loss.

6

0

0.05

0.1

0.15

Estimated non-silicon costs of cells, Unit $/WMono PERC TOPCon HJT

Today Accelerating cost reductions from 2023

Cell cost trends

The current non-silicon cost of TOPCon is about $0.013/W higher than PERC. With continuous cost reduction of metallization process, improvement of yield and efficiency, as well as large-size equipment, TOPCon's non-silicon cost will gradually approach that of PERC.

Next year will be dominated by the construction and ramp up of new production capacity, Production line optimization and cost reduction will be accelerated from 2023.

.

Wafer

› Large wafer: More adopted M10 wafers.

› Thinner wafer: M10:165um@2021-> 160um@2022

› Bifacial: N-type’s nature of high bifacial rate and bifacial demand increases rapidly. › Half-cut, high-density assembling, and non-destructive cutting are essential

techniques.

› N-type manufacturers overseas mostly target residential and C&I rooftop sectors.› China’s n-type makers focus on utility-scale ground-mounted PV projects.› Various kinds of module layout designs will determine the variety of n-type market.

TOPCon trends and outlook

Cell

› Efficiency in mass production: 24%+› Various tech routes: LPCVD, PECVD, PVD, the key is to improve ratio of grade A

products and efficiency.› New metallization solutions such as laser printing and copper electroplating may be

widely discussed.

Module

Application

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