Another new frontier in logistics competition is here!

In recent years, driven by both policy support and market forces, China’s photovoltaic industry has continued to grow and strengthen. In With the growing integration of “PV+,” the logistics sector—long a major energy consumer—has not only achieved energy savings and reduced consumption but has also gradually given rise to new logistics service models that span the entire photovoltaic industry chain. Along this path, challenges coexist with opportunities: the PV industry continues to draw logistics firms into its fold as end‑users, while these companies, in turn, are becoming an indispensable part of the supply chain.

Today, the value of photovoltaic‑powered logistics is becoming increasingly evident. More and more logistics companies are not only actively participating in the development of photovoltaic parks, leveraging solar‑generated green energy to cut emissions and conserve resources, but also tailoring end‑to‑end supply chain solutions that span from manufacturing facilities to final customers. Photovoltaics are rapidly transforming the logistics sector!

▍ Policy-driven boost “Photovoltaics + Transportation and Logistics” Has Become a New Trend

In recent years, the state has actively encouraged the development and utilization of renewable energy, ushering in a golden era of rapid growth for the distributed photovoltaic industry. According to data from Qichacha, currently in China there are… 683,000 photovoltaic‑related enterprises. In terms of new registrations, China’s photovoltaic‑related businesses have seen a year‑on‑year increase since 2020: in 2020, 2021, and 2022, new registrations rose by 22.0%, 63.7%, and 34.0% year over year, reaching 68,000, 111,000, and 149,000 respectively. In the first half of 2023, China registered 109,000 new photovoltaic‑related enterprises, a year‑on‑year increase of 60.0%.

In the area of investment and financing, according to data from Qichacha, Since 2020, capital market investment enthusiasm in China’s photovoltaic sector has risen steadily year after year. In 2020, PV‑related brands completed a total of 62 financing deals; in 2021 and 2022, the number increased by 66.1% and 58.3% year over year, reaching 103 and 163 deals, respectively. As of August 7, 2023, PV‑related brands in China had already closed 87 financing rounds in 2023. By round, since 2020, strategic financing and M&A have accounted for the bulk of PV‑related funding, with a combined 277 deals—66.7% of the total—followed by IPOs and Series A rounds, which totaled 41 and 37 deals, representing 9.9% and 8.9%, respectively. In terms of deal size, as a capital‑intensive industry, PV financing tends to be substantial, with most transactions concentrated at the hundred‑million‑yuan level—121 deals, or 66.9%—while ten‑million‑yuan‑level financings account for 54 deals, or 29.8%.

The booming momentum of the photovoltaic industry has extended into the transportation and logistics sectors, and with supportive policies, its penetration continues to rise. Photovoltaic‑powered port terminals, warehousing parks, highways, stations, and transshipment centers are now commonplace.  

On January 4, 2022, the Ministry of Industry and Information Technology and four other departments jointly issued the “Action Plan for Innovative Development of the Smart Photovoltaic Industry (2021–2025),” which explicitly encourages the application of photovoltaic power generation in areas such as highway service zones (parking lots), gas stations, roadside slopes, highway tunnels, bus and freight terminals, port terminals, navigational aids and other navigation‑assistance facilities, pier pontoons, and work sites on islands. On January 18, 2022, the State Council released the “14th Five-Year Plan for the Development of a Modern Comprehensive Transportation System,” which promotes the rational deployment of photovoltaic power generation along transportation hubs, highways, railways, and other infrastructure. On May 30, 2022, the Ministry of Transport issued the “Work Plan for Solidly Advancing the Implementation of Major Transportation Projects under the 14th Five-Year Plan,” calling for the construction of a number of distributed new‑energy storage microgrid projects at expressways, port terminals, and other locations. On April 6, 2023, the National Energy Administration issued the “Guiding Opinions on Energy Work for 2023,” which also emphasizes the vigorous promotion of decentralized onshore wind power and distributed photovoltaic power generation projects.

Faced with the relentless efforts at the national level to press… The “fast‑forward” trend has been met with widespread response from local governments. On October 13, 2022, the People’s Government of Shandong Province issued the “Technical Specification for Photovoltaic Power Generation on Highway Slopes,” becoming the nation’s first standard for highway‑based photovoltaic systems. In addition, numerous provinces—including Zhejiang, Jiangsu, Ningxia, Inner Mongolia, and Guangdong—have issued policies to support the development of “photovoltaics plus transportation and logistics.” Some municipalities and provinces have explicitly stipulated that they will encourage the installation of photovoltaic power systems in a variety of transportation‑related settings, such as highway service areas, port terminals, transport hubs, rest stops, gas stations, and along roadways.

With the backing of favorable policies, the market has also begun to… “Brimming with potential,” it further advances the integrated development of “photovoltaics plus transportation and logistics.” In this process, logistics enterprises not only serve as purchasers and end‑users in the photovoltaic sector but are also gradually embedding themselves in the industry, becoming key optimizers along the photovoltaic value chain.

▍ Photovoltaic logistics applications are flourishing across the board.

Driven by both policy and market forces, “Photovoltaics plus transportation and logistics” is experiencing a surge in development, steadily advancing in depth and practicality. This not only injects new momentum into the green transformation of the logistics sector but also opens up fresh avenues for optimizing the photovoltaic industry chain.

Since 2023, news about logistics applications in the photovoltaic sector has been emerging one after another.

On August 20, the grid-connection ceremony was held for Prologis’ Huai’an‑area distributed photovoltaic (PV) cluster project. This marks Prologis’ largest distributed PV cluster project to date, spanning the contiguous rooftops of the Pufu Technology Industrial Park, the Prologis Huai’an Economic Development Zone Logistics Park, and the Huai’an Pukai Smart Cold‑Chain Logistics Park, all located in Huai’an City, Jiangsu Province.

On August 14, Sunrise Oriental won the bid for the photovoltaic project of the Lianyungang Port Group’s International Green and Intelligent Automotive Logistics Center. The project will employ state-of-the-art AGV‑based intelligent parking technology to construct a five‑story, multi‑level parking garage with a total floor area of 74,000 square meters. It is a key national logistics hub initiative that prioritizes foundational infrastructure and addresses critical capacity gaps.

On August 10, the first port‑terminal distributed photovoltaic power generation project in Jiangxi Province—Yingtan Port’s Yujiang Zhongtong Comprehensive Terminal 0.5‑MW distributed PV project—was successfully connected to the grid and began generating electricity.

On May 19, the distributed photovoltaic project at Shentong Express’s Hangzhou transshipment center was successfully connected to the grid and began generating power, marking the successful completion and commissioning of Shentong Express’s first megawatt‑scale solar‑power generation project and representing another major step forward in advancing green logistics, intelligent equipment, and energy efficiency.

On May 12, Transfar ZhiLian announced that its contracted rooftop photovoltaic projects now cover 40 highway‑port urban logistics centers, with a total construction area of 1.45 million square meters and a distributed PV installed capacity of 145 megawatts. Upon full completion, the projects are expected to generate approximately 150 million kWh of electricity annually and include 340 charging stations.

On April 20, FedEx Express, a subsidiary of the FedEx Group, announced the official commissioning of a photovoltaic power‑generation system at its ground operations facility in Shunyi, Beijing.

In mid-February, with the gradual closing of the grid‑connection switches for the 3.32‑megawatt distributed photovoltaic power generation project at the Tianjin Air Port’s Comprehensive Customs Clearance Base, “green” electricity began flowing steadily into the base, marking the official commissioning of the project. Implemented jointly by Tianbao Energy, a subsidiary of Tianbao Holdings, and Tianjin Aviation Logistics Development Company, the project is expected to generate an average of 3.234 million kilowatt-hours of electricity annually, reducing carbon dioxide emissions by nearly 2,000 tons per year…

As such, the integration of photovoltaic power generation with the transportation and logistics sectors not only aligns with national energy‑saving and consumption‑reduction goals but also significantly helps reduce operational costs and enhance economic returns. Consequently, in recent years, many warehousing parks, express delivery companies, ports, and corporate office buildings of logistics enterprises have actively invested in and developed distributed photovoltaic projects.

Among them, Prologis has drawn the most attention for the scale and intensity of its deployment in rooftop solar photovoltaic projects. From… In 2018, Prologis established Pufeng New Energy, a subsidiary dedicated to the investment, development, and operation of distributed photovoltaic projects. To date, Pufeng New Energy has steadily operated distributed solar‑power generation projects across 25 provinces and municipalities nationwide, serving more than 40 core cities with robust electricity demand—including Beijing, Shanghai, Guangzhou, Shenzhen, and Hangzhou—while maintaining a cumulative development capacity exceeding 1 gigawatt (1,000 MW). Both its development pipeline and grid‑connected capacity currently rank among the industry’s highest. Notably, Pufeng New Energy’s distributed PV projects have not only been deployed across more than 100 of Prologis’ industrial parks nationwide but have also forged partnerships with a wide array of warehousing and logistics companies, such as Sinotrans Logistics and Lingzhi China.

“Prologis established ProLogium New Energy and began deploying distributed photovoltaic systems for two main reasons,” said Luo Shu, Senior Vice President of Prologis China and President of ProLogium New Energy, in an interview with this publication. “First, Prologis places ESG at the heart of its business model, striving to extend sustainable‑development practices from the logistics and industrial parks it invests in—its infrastructure—to the upstream and downstream segments of the supply chain. Prologis boasts the largest rooftop‑PV resource base among logistics parks nationwide, all located in economically developed regions. Second, from an industry‑trend perspective, park‑level electricity demand has traditionally been relatively low; however, in recent years, driven by the growth of the cold‑chain sector and the increasing automation of warehousing and logistics, energy consumption has steadily risen. Coupled with the national ‘dual carbon’ goals and the growing acceptance of ESG principles, more and more logistics‑park owners and tenants are proactively seeking to adopt green energy.”

Luo Shu explained to the reporter, citing customer case studies. “One of our customers, when relying on manual picking, incurred monthly electricity costs of roughly RMB 50,000 to 60,000. However, after implementing automated sorting equipment, their electricity demand increased to two or even three times the original level. If they also operate cold-chain warehousing facilities covering a substantial area, their energy consumption could rise by another factor of two to three. Consequently, logistics parks themselves will require ever greater amounts of energy.”

Wanwei Logistics is also ramping up its rooftop solar‑photovoltaic (PV) initiatives. As it builds zero‑carbon logistics parks, the company regards rooftop distributed PV as a key pathway to decarbonizing its facilities, prioritizing its deployment on the roofs of cold‑chain logistics parks where electricity demand is high. Moving forward, Wanwei plans to further expand PV coverage across its portfolio, increasing the share of renewable energy in its power mix and ultimately achieving carbon‑neutral electricity consumption. Today, all new projects undertaken by Wanwei Logistics are pre‑equipped with infrastructure for rooftop PV installations, underscoring the technology’s strong alignment with decarbonization goals in logistics parks.

According to reports, the Wanwei Shanghai Fengxian Lingang Park has installed a distributed photovoltaic power system on the rooftops of three factory buildings, with a total installed capacity of… 3,534.795 kilowatts, utilizing high-voltage grid connection to achieve self-generation and self-consumption, with surplus power fed into the grid. In September 2022, the project was officially connected to the grid and began generating electricity; once completed, it will produce approximately 3.5 million kilowatt-hours of renewable energy annually.

Pufeng New Energy has used the rooftops of logistics parks as a foothold to launch its distributed photovoltaic business; today, its projects span a variety of building types, including industrial parks, manufacturing facilities, data centers, and office buildings. “Although all these projects involve rooftop solar PV, the differences across various settings can be quite significant,” explained Luo Shu. “When rooftop space is relatively limited—and often already occupied by ventilation ducts, or even parking areas—the available area for installing solar panels becomes quite restricted. Moreover, in urban districts or city centers, one must also account for shading from surrounding high-rise buildings, which can negatively impact power generation.”

By contrast, certain conditions at warehousing and logistics parks are particularly well-suited for deploying distributed photovoltaic power systems. For instance, these parks often feature large, flat, underutilized rooftop areas, making the installation of PV systems relatively straightforward and easy to implement. Moreover, the surrounding environments are typically open and unobstructed, with abundant solar irradiance, which enhances the efficiency of the photovoltaic system. Installing a PV system for on-site self‑consumption can significantly reduce substantial industrial electricity costs, and projects that meet national policy requirements may also qualify for photovoltaic subsidies, thereby lowering operating expenses for tenant businesses.

Lin Weijian, head of FedEx’s China Industrial Division, likewise believes that different application scenarios impose entirely distinct requirements on photovoltaic deployment, which must be tailored to the specific circumstances. “Recently, FedEx officially commissioned a photovoltaic power‑generation system at its ground operations facility in Shunyi, Beijing. This project was installed primarily at our Beijing‑based ground operations site, rather than at the Beijing Capital International Airport’s port‑of‑entry operations center, despite the two being located close to one another. However, because the port‑of‑entry operations center is situated very near the airport, installing rooftop solar panels could generate light reflections that might interfere with the safe navigation of aircraft, posing potential safety risks. Therefore, the implementation of a photovoltaic project requires site selection based on actual conditions and prior approval from the relevant authorities.”

Lin Weijian stated: “In August 2022, we obtained project approval from the Development and Reform Commission of Shunyi District, Beijing. In January of this year, FedEx officially commenced on-site roofing waterproofing work. After more than three months of intensive effort, by April we had completed the installation and commissioning of all photovoltaic modules, inverters, grid‑connection switchgear, and related equipment. At the same time, we formally submitted a grid‑connection application to the local power grid and underwent on-site acceptance by State Grid.”

In addition, the development and deployment of distributed photovoltaic systems inevitably raise concerns about investment returns, which are of great interest to all stakeholders. As a specialized investor and operator in the distributed PV sector, Pufeng New Energy conducts detailed financial analyses for every project it undertakes, establishing a streamlined process that covers fundraising, investment, management, and exit. “At present, for the projects that Pufeng has already commissioned and put into operation, actual investment returns have largely met or even exceeded the original expectations,” said Luo Shu, who went on to explain that achieving this goal hinges on several key factors: first, the type of rooftop‑mounted projects involved; second, whether the primary power‑consumers’ demand is long‑term, consistent, and stable; and third, the local conditions at the project site, such as solar irradiance and prevailing electricity prices. Only after a comprehensive assessment can it be determined whether the project will deliver the anticipated returns.

Meanwhile, Luo Shu also noted that, from the perspective of the upstream and downstream industrial chain, driven by national policies, photovoltaic equipment production has been steadily increasing, while photovoltaic module prices have continued to decline, enabling some PV projects to operate sustainably even without government subsidies.

▍ Optimizing the photovoltaic industry chain from a supply-chain perspective

Today, as more photovoltaic companies enter the market, it is experiencing large-scale growth, and the tremendous industrial momentum it generates is driving the upgrading of logistics. At the same time, The “dual carbon” goals have also fueled explosive growth in the photovoltaic industry. In 2022, the development of domestic PV power‑generation bases and the deployment of distributed PV systems both advanced steadily, with new domestic PV capacity exceeding 87 GW. Throughout the year, PV product exports surpassed US$51.2 billion, and PV module shipments exceeded 153 GW, effectively underpinning growth in both domestic and international PV markets and meeting global demand for renewable energy.

However, for a long time, photovoltaic companies have been focused on scaling up, accelerating growth, and driving down prices, while maintaining rather lax logistics management. As a result, costs have risen instead of falling. Data show that the share of logistics expenses in the photovoltaic production process has increased from… ten years ago. The share has risen from 1% to its current level of 3%–5%. As photovoltaic companies transition into a new phase focused on quality, technology, and profitability, there is an urgent need for specialized logistics providers that can keep pace with this development—companies capable of enhancing efficiency and optimizing operations.

Accordingly, a number of logistics companies have rolled out integrated solutions to support the growth of the photovoltaic industry.

In early June, Cainiao announced that several leading domestic photovoltaic companies, including Tongwei and JA Solar, have successively partnered with the company. According to reports, Cainiao has stepped up its efforts to provide logistics and supply-chain services to the PV industry, now covering the entire upstream–midstream–downstream value chain. It offers end-to-end solutions spanning from upstream raw materials and semi-finished products, through midstream wafers and finished modules, to downstream integrated warehousing, distribution, and installation for PV power plants, as well as digital operations and maintenance across the full value chain.

In mid-April, JD Logistics announced that it would iteratively upgrade its logistics solutions for the photovoltaic industry. According to reports, for distributed PV projects, JD Logistics offers an integrated supply-chain solution encompassing trunk-line transportation, warehousing, last-mile delivery, as well as development, site surveying, installation, and grid connection services.

At the end of March, RRS Supply Chain partnered with Sunshine New Energy to build an integrated warehouse‑logistics distributed photovoltaic smart warehouse, helping Sunshine New Energy achieve refined supply chain management.

“The photovoltaic industry is expanding at a rapid pace, and the doubling of commercial transactions requires robust logistical support. While ensuring the smooth execution of PV‑related trade, this also creates new revenue growth opportunities for logistics and supply‑chain firms,” said a responsible representative from Ririshun in an interview. “Drawing on their longstanding industry expertise and leveraging that accumulated knowledge as a foundation, logistics and supply‑chain companies can effectively meet the fast‑paced deployment needs of the PV sector. At the same time, they can continuously refine and iterate their solutions through ongoing service delivery, building supply‑chain capabilities that are better aligned with the specific demands of the photovoltaic value chain.”

Indeed, throughout the entire photovoltaic industry value chain—from upstream silicon‑material production to downstream power‑station assembly—every link relies on a robust supply chain. However, the current quality of supply‑chain service providers in the sector remains uneven, leaving persistent challenges such as heightened management complexity. Consequently, as we advance the development of a new type of power system centered on new energy sources, supply‑chain management and control have become critical priorities, following breakthroughs in key technologies.

“The photovoltaic industry has grown exceptionally rapidly, and its business models are highly customized. Compared with other sectors, it features distinct patterns in order and cash flows. Operating on a make-to-order basis, the PV industry schedules production and shipments based on customer deposits and final payments, which leads to significant volatility in logistics order volumes and places considerable pressure on supply‑chain reliability,” said a representative from RRS Supply Chain. The company believes that logistics providers can enter the market by offering integrated supply-chain services, co‑creating value with leading PV firms, and working closely with customers to enhance the accuracy of scheduling and planning. By implementing pre‑positioned warehouses and advancing inventory placement, they can mitigate supply‑chain risks and improve delivery timeliness. RRS Supply Chain has leveraged this approach to engage with the PV sector, collaborating with industry leaders to design multimodal transport solutions that further reduce costs, accelerate delivery, and optimize service performance. Additionally, the company has introduced a customer‑feedback framework to deliver an even higher‑quality customer experience.

The official also noted that the photovoltaic industry exhibits distinct seasonal peaks and troughs, leading to uneven demand for transportation capacity. The nationwide deployment of upstream and downstream supply-chain players drives robust demand for trunk‑line logistics resources. Coupled with the fact that most destinations are remote project sites in Northwest China, this poses significant challenges to both the resource allocation and solution frameworks of logistics and supply-chain providers. Balancing transport capacity, managing costs while maintaining a strong reputation during peak seasons, and devising road‑survey and short‑haul coordination strategies for remote areas are all pressing issues that logistics and supply-chain firms are grappling with—and will need to address in the period ahead.

The aforementioned executive at RRS Supply Chain used photovoltaic modules as an example to explain the situation to our reporter. He noted that the product characteristics and value of photovoltaic modules differ significantly from those in other industries. A more pronounced distinction lies in the delivery addresses: RRS Supply Chain currently handles a greater share of utility‑scale solar projects, with most customer sites located in remote areas where warehouse conditions are complex. As a result, prior to launching each project, the company dispatches dedicated personnel to conduct on‑site route surveys, develop detailed transportation plans, and execute them accordingly. “This calls for logistics and supply-chain companies to have agile processes and a skilled workforce capable of swiftly devising tailored solutions. Distributed photovoltaic projects, with their fragmented cargo volumes and numerous handling stages, present unique challenges—particularly given the fragility of PV modules, which require careful protection and thorough inspection at every stage of loading and unloading. Therefore, it is essential to develop practical, implementable solutions specifically designed for PV products,” said the official.

Pufeng New Energy has also encountered challenges in assisting logistics companies with the deployment of distributed photovoltaic systems. “From a technical standpoint, the biggest challenge in the early stages of a project is ensuring the structural safety of the roof during construction. To address this, many projects require in‑warehouse reinforcement—strengthening the existing steel‑framed roof through additional beams and columns to achieve adequate load‑bearing capacity,” said Luo Shu. He added that, prior to 2018, nearly all rooftop projects involved such reinforcement, a task that could only be accomplished through coordinated efforts among all stakeholders. This was because it was essential both to minimize disruptions to tenants’ day‑to‑day operations during roof‑deck construction and to keep the project schedule within reasonable bounds. Consequently, since 2018, Prologis has made pre‑loaded roof capacity a standard feature, and when undertaking external or third‑party rooftop projects, we have leveraged and replicated our proven expertise and capabilities in this area.

Since Since 2022, Prologis has mandated that all new projects in China be fully equipped with distributed photovoltaic (PV) systems, helping to achieve carbon neutrality in its park operations. As Prologis’ renewable energy generation capacity continues to expand, it not only supports the green operations of its logistics parks, industrial parks, and data centers and meets the clean‑energy needs of on‑site customers, but also enables the sale of surplus power to the State Grid or end‑users, delivering green electricity to local grids and driving the green transformation of the broader supply chain.

China Photovoltaic Association CPIA recently released a report on the development of logistics in China’s photovoltaic industry, identifying three key trends: first, locating production facilities closer to sales markets has become the dominant pattern for deploying module‑manufacturing capacity; second, leveraging online freight‑transport platforms to enhance the efficiency of capacity‑resource integration and ensure timely product delivery; and third, placing greater emphasis on the integrated service capabilities of logistics providers while seeking an optimal balance between cost and service quality. However, as PV companies transition from marketing‑driven globalization to operational‑level globalization, how their logistics management can keep pace with the evolution of global supply‑chain strategies—thereby achieving genuine cost reductions and efficiency gains and ensuring the stability, safety, and efficiency of international PV supply chains—remains a critical issue for the industry to address.

It is evident that, as China’s photovoltaic industry continues to grow and mature, the various links in the value chain are becoming increasingly interconnected, with logistics and transportation playing an ever‑more critical role throughout. Fortunately, driven by both policy support and market forces, the integration of the photovoltaic sector with logistics is steadily deepening and gaining concrete traction.