HD Hyundai Energy Solutions’ Global Leap in Solar Power: A New Turning Point for South Korea’s Renewable Energy Industry
Editor
According to a recent article from Pinpoint News, HD Hyundai Energy Solutions has achieved significant results in the solar sector. Although it was relatively less known among HD Hyundai Group’s affiliates, this report shows its impressive growth. It is particularly interesting that it started from the Eumseong plant and is expanding into the global market.
The article states that HD Hyundai Energy Solutions has significantly expanded its solar module production capacity in recent years. As of 2025, its annual production capacity reaches 1.2GW, which accounts for a substantial market share in the domestic solar module market. Personally, this figure seems larger than expected, and considering South Korea’s total solar installation capacity is around 4-5GW annually, it can be seen as a significant scale.
What is truly impressive is the success in overseas expansion. According to the article, the company is increasing orders in the U.S. and European markets and is considering establishing local production bases to benefit from the U.S. Inflation Reduction Act (IRA). This appears to be a strategic move, as the U.S. is strengthening tariffs on Chinese solar modules, which could present opportunities for Korean companies.
Looking at the entire domestic solar industry, the rise of HD Hyundai Energy Solutions signifies a meaningful change. Hanwha Solutions (formerly Hanwha Q CELLS) has led the domestic solar module market, but now the competitive landscape seems to be diversifying. Hanwha Solutions is expected to ship approximately 8.4GW of solar modules globally by 2024, operating large production bases in Malaysia and China. In contrast, HD Hyundai Energy Solutions, though relatively smaller, appears to be targeting niche markets by focusing on high-quality products.
Intensifying Competition in the Global Solar Market and Positioning of Korean Companies
Currently, Chinese companies dominate the global solar market with overwhelming market shares. The top three Chinese companies, LONGi Solar, JinkoSolar, and Trina Solar, account for over 40% of the global solar module shipments. In this situation, Korean companies need to differentiate themselves in technology and quality to secure competitiveness, and HD Hyundai Energy Solutions seems to be approaching this direction.
Notably, the company is focusing on producing high-efficiency modules using N-type TOPCon (Tunnel Oxide Passivated Contact) technology. This technology offers 1-2 percentage points higher efficiency than the existing P-type PERC and has superior temperature coefficients, resulting in greater differences in actual power generation. The efficiency of TOPCon modules currently reaches 22-23%, which is quite high among commercialized silicon solar cells.
According to the article, HD Hyundai Energy Solutions recorded approximately 280 billion KRW in sales as of the third quarter of 2024, a 35% increase compared to the same period last year, driven by the growth of the solar module business. The operating profit margin is maintained at 8.5%, indicating that the company is securing profitability to some extent in price competition with Chinese companies.
However, price competition with Chinese companies remains challenging. In the second half of 2024, global solar module prices fell to 0.12-0.15 USD per watt, almost half of what they were two years ago. The Chinese government’s support for manufacturing and economies of scale from large-scale production are driving this price decline. For Korean companies, differentiation in technology, service, and supply chain stability is essential rather than simple price competition.
In this context, HD Hyundai Energy Solutions’ strategy to enter the U.S. market seems timely. The U.S. government provides a manufacturing tax credit of 7 cents per watt for solar modules produced locally through the IRA, in addition to imposing tariffs on Chinese products. In fact, the U.S. solar installation volume reached 35GW in 2024, a 25% increase from the previous year, and is expected to exceed 40GW by 2025.
Changes in Domestic Renewable Energy Policy and Industry Ecosystem
The South Korean government’s renewable energy policy also significantly impacts the growth of the solar industry. As of 2025, the share of renewable energy generation in South Korea is about 9.8%, and the government aims to expand this to 30% by 2030. This requires an additional 4-5GW of solar installations annually, which can be a significant growth driver for the domestic solar industry.
A notable change is the increase in large-scale solar power projects. While small-scale rooftop solar was predominant in the past, there is now a rise in large-scale utility projects over 100MW. These projects emphasize module quality and long-term reliability, creating a favorable environment for domestic companies like HD Hyundai Energy Solutions.
Additionally, the rapid growth of the corporate solar market is driven by the expansion of RE100 (Renewable Energy 100%) participation. Major corporations such as Samsung Electronics, SK Hynix, and LG Energy Solution have joined RE100, leading to a surge in renewable energy procurement demand. These companies evaluate not only price but also supplier reliability and ESG management levels, presenting opportunities for domestic companies.
However, the domestic solar industry faces several challenges. The biggest issue is the high dependency on raw materials. Over 90% of the key materials for solar modules, such as polysilicon and wafers, are imported from China, posing significant supply chain risks. During the 2021 Xinjiang polysilicon supply disruption, domestic solar companies faced considerable difficulties.
To address this, the government is supporting the localization of key solar materials through the ‘Materials, Parts, and Equipment 2.0’ policy. OCI is expanding its polysilicon plant in Gunsan with an annual capacity of 40,000 tons, and Shinsung E&G is also expanding its wafer production capacity. However, the price competitiveness compared to China remains insufficient, making it difficult to significantly reduce import dependency in the short term.
Nevertheless, the growth story of HD Hyundai Energy Solutions is a good example of the potential of the Korean solar industry. It demonstrates that competitiveness can be secured by differentiating in technology and quality and responding quickly to changes in the global market. Especially with the increasing scrutiny on Chinese products in the U.S. and European markets, there may be new opportunities for Korean companies.
It will be worth watching what achievements HD Hyundai Energy Solutions will make in the future. The company plans to expand its production capacity to 2GW by 2026, which, if realized, will further solidify its position in the domestic solar module market. At the same time, if overseas expansion is fully realized, it could become a new growth driver for the Korean solar industry.
This article was written after reading the Pinpoint News article: From Eumseong Plant to Global… HD Hyundai Energy Solutions Emerges as a National Representative in Solar Power < Securities & IB < Finance & Securities < Article – Pinpoint News, with personal opinions and analysis added.
Disclaimer: This blog is not a news outlet, and the content is the author’s personal opinion. The responsibility for investment decisions lies with the investor, and no responsibility is taken for investment losses based on the content of this article.
