Against the backdrop of an unprecedented supply-demand crunch in the global electrolytic aluminum market, composite material frames for photovoltaic (PV) panels are emerging as a pivotal alternative and a new growth engine for the PV industry. Driven by multiple factors such as historical low aluminum inventories, rigid supply constraints and the implementation of carbon tariff policies, composite frames are rapidly evolving from a technical option to a commercial necessity for PV panels, boasting broad application prospects in the global market.

The global electrolytic aluminum market is currently grappling with an acute supply-demand imbalance. According to research data from CSC Financial Co., Ltd., the global apparent inventory of electrolytic aluminum has plummeted to a historic low of 1.175 million tons, equivalent to a mere 5.6 days of global consumable supply. Such a low inventory level means that any supply disruption exceeding 300,000 tons could trigger violent market fluctuations and push aluminum prices upward.

On the domestic front in China, the upper limit of operating electrolytic aluminum capacity has been set at 45 million tons since 2017. By September 2025, the actual operating capacity had reached 44.45 million tons, already inching close to the ceiling. The projected output growth rates for 2026-2028 are a meager 2.0%, 0.5% and 0.7% respectively, indicating a near-total lack of elasticity in the domestic supply side.

Overseas supply is equally fraught with uncertainties. Although Indonesia and other regions have planned over 10 million tons of new electrolytic aluminum capacity, the actual commissioning progress has fallen far short of expectations due to environmental policies, inadequate infrastructure and geopolitical factors. Moreover, the European Union's Carbon Border Adjustment Mechanism (CBAM) will enter the full taxation phase starting January 1, 2026, with electrolytic aluminum included in the first batch of taxed products. Aluminum production capacity relying on coal-fired power in Indonesia and other countries will face hefty carbon taxes, drastically eroding its cost-performance ratio.

On the demand side, emerging sectors such as new energy, AI data centers and energy storage are driving a surge in aluminum demand. Morgan Stanley forecasts that the global energy storage sector will generate an additional 1.44 million tons of aluminum demand in 2026. Additionally, the copper-aluminum ratio has remained at a historic high above 4, accelerating the trend of "aluminum replacing copper" and further boosting aluminum demand.

Combined with the triple factors of rigid domestic supply constraints, historical low global inventories and the full implementation of carbon tariff policies, aluminum prices are set to enter a long-term high-operation channel, creating an urgent need for high-performance and cost-effective alternative materials in the PV industry.

Fiber-reinforced composite materials are emerging as the ideal alternative to aluminum frames for PV panels, thanks to their outstanding comprehensive advantages, which perfectly address the pain points of the PV industry amid high aluminum prices and carbon emission requirements.

The CO2 emission of composite frames is only about 15% of that of aluminum frames. With the full implementation of the EU CBAM and the increasing global emphasis on carbon neutrality, the low-carbon feature of composite frames has become a core competitive edge for entering the international market, helping PV enterprises avoid carbon tariff costs and meet the environmental protection requirements of global trading partners.

Composite frames for PV panels boast a host of advantages including light weight, high strength, insulation, aging resistance, corrosion resistance and cost efficiency. Their excellent corrosion resistance and electrical insulation can effectively mitigate the issue of potential-induced degradation (PID) of PV panels, eliminating the need for additional grounding hardware and reducing the overall installation and maintenance costs of PV power stations. For harsh application scenarios such as offshore and desert PV projects, composite frames demonstrate far better adaptability than traditional aluminum frames.

Composite frame manufacturers have developed customized products for different PV application scenarios based on market demand. For example, specialized offshore PV frames with ultra-high salt spray resistance have been launched for marine PV projects; high-adaptability composite frames have also been applied in large-scale desert PV power stations, effectively improving the operational efficiency and service life of power stations. In addition, composite frames support full-color customization, perfectly solving the aesthetic pain points of commercial and industrial rooftop PV projects and realizing the integration of PV power generation and building aesthetics.

As aluminum prices remain at a high level for a long time, the cost advantage of composite frames for PV panels is becoming increasingly prominent. The stable raw material supply and mature production processes of composite materials ensure the cost stability of the frames, helping PV enterprises control production costs and improve profit margins in the context of rising aluminum prices.

Driven by multiple advantages, composite frames for PV panels have achieved a leap in market penetration in recent years. Research data shows that the total order volume of the global composite PV frame industry exceeded 12GW in 2025, with shipments reaching 9.2GW, marking a significant increase in market acceptance. What’s more, composite frames are no longer just a "technical alternative" for the PV industry, but have gradually become a "commercial necessity" recognized by downstream enterprises such as PV panel manufacturers and power station investors.

The application of composite frames is not limited to the onshore PV market; it has also broken new ground in offshore PV, a high-growth track of the PV industry. For instance, composite frames have successfully supported the 1.8GW offshore PV project in Qinhuangdao, China, verifying their reliability and adaptability in harsh marine environments. In desert PV projects, composite frames have also played a key role in improving the quality and efficiency of power stations, becoming the preferred material for large-scale desert photovoltaic bases.

Beyond the PV sector, composite profiles based on pultrusion technology— the core process for manufacturing composite PV frames— are expanding into diverse application scenarios such as energy storage system structural parts, marine engineering facilities and logistics pallets. This multi-scenario expansion not only disperses the market risk of a single PV application, but also cultivates new growth points for the composite material industry, laying a solid foundation for the long-term development of composite frame enterprises.

The advantages of composite materials are not only reflected in the PV frame sector, but also shine in the door and window profile market, which is also highly dependent on aluminum profiles. Amid the price pressure of aluminum profiles caused by supply constraints, composite door and window profiles have become a new choice for building energy-saving renovation and green building construction due to their light weight, high strength, corrosion resistance and thermal insulation properties. Relying on the mature technical foundation of pultrusion technology, composite door and window profiles are expected to achieve rapid penetration in the stock building renovation market, opening up a new blue ocean market for composite material enterprises.

In the global context of pursuing carbon neutrality and the long-term high operation of aluminum prices, the composite material pultrusion profile industry is facing a rare substitution window. For enterprises engaged in the R&D, production and sales of composite frames for PV panels, seizing the development opportunity, deepening the PV application scenario, expanding to multiple downstream segments and giving full play to the dual advantages of low carbon and performance will be the key to achieving leaping development in the wave of global material substitution.

As a professional manufacturer of composite frames for PV panels, we are committed to providing high-quality, customized and low-carbon composite frame solutions for global PV customers. With mature pultrusion technology and rich project application experience, we can meet the diverse needs of different PV application scenarios such as onshore, offshore and desert PV projects. We look forward to cooperating with global PV enterprises to jointly seize the development opportunities of the composite material substitution era and promote the green and low-carbon development of the global PV industry.