PVTIME – On 18 July, the Chinese solar manufacturer Trina Solar announced that it had settled its $132 million legal dispute with SHARP. Following amicable negotiations, the two companies agreed on a binding settlement framework. Trina Solar will pay a defined settlement sum and provide module after-sales support in line with its product warranty terms. All arbitration is set to end shortly after the agreement is signed.
The dispute originated from a 2013 agreement: in August of that year, Trina Solar and SHARP entered into a contract for the supply of approximately 936 MW of modules, valued at around $600 million, with deliveries and payments to be completed between 2013 and 2016. In October 2023, SHARP initiated arbitration proceedings with the ICC, claiming that faulty insulation in the modules’ backsheets, supplied by a third party whose selection SHARP had approved, had caused losses. SHARP argued that Trina Solar should be liable for the actions of the supplier and sought $132.2 million in compensation.
Trina Solar has stated that the settlement is not expected to have a significant impact on its net profit attributable to its parent company’s owners in 2025, projecting that the effect will remain below 5% of the absolute value of its audited net profit from the previous year. The accounting treatment will follow relevant standards and the final impact is subject to auditor verification. The settlement will not have a material effect on Trina Solar’s financial position or operational performance.
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