Sanctions on the photovoltaic industry and the anti-sanctions, the Sino-US this is not just a fragment of the Sino-US trade war, China PV industry really has come to life and death of the impasse. Faced the situation of abnormal development of the PV industry since the date of birth, heavily dependent on government subsidies, to rely on more than 90% of exports, overcapacity enterprises have encountered difficulties. These “original sin” has led to today’s industry dilemma.
problem 1st: Heavily dependent on government subsidies
Difficult to say whether because of government over-indulgent, which leads to the PV industry is born with deformities.
The current photovoltaic power generation costs are higher than traditional energy generation, so the countries of photovoltaic power generation are carried out various forms of supplement to compensate for business losses. This year’s national Golden Sun project only an on-going subsidies 9.4 billion yuan; In addition, countries need to of 4GW photovoltaic power generation subsidies of nearly 2 billion yuan.
2011 revenue of 10 trillion yuan, only more than two subsidies equivalent to 0.114% of the country’s financial, and has not been “building integrated photovoltaic subsidies, transportation subsidies and previous years of photovoltaic power generation has been built photovoltaic power plants power subsidies into account.
Subsidies is “double-edged sword”, while promoting the development of PV industry, but also an important factor restricting the development in accordance with the laws of the market “independent”.
problem 2nd: heavy dependence on exports overseas
Rely on exports of one leg, it is no wonder the U.S. sanctions, prompting the industry-wide cry day shout to.
China’s solar photovoltaic industry production capacity, production rank the first in the world, there are more than 90 percent rely on exports. Products in the domestic PV applications in foreign countries, such a market upside down cause serious PV industry controlled by others.
Domestic line PV industry is most worried about is the world’s largest solar market – the EU will not be followed by the United States introduced sanctions. Chinese PV products exports to the EU’s share of 70%, then the losses will not be able to afford.
problem 3rd: PV industry overcapacity serious
PV companies in China “rush” type of development also contributed to an important cause of the winter season arrives.
Example, in Zhejiang, Zhejiang Province, a total of 205 PV companies, of which there are 110 established in September 2010, the scale of 100MW following. The increasing influx will inevitably lead to increased competition. Up to now, the domestic industry profit margin fell from 139% to 20%. Many small businesses close down or stop production, the some of the earlier planning of the project were forced to slow down. GCL, a top executive said: “The current oversupply of at least more than doubled the global market demand of about 20GW production capacity has reached 40GW to 50GW, the excess of 20GW can only be eliminated.”
2012 China PV industry development problem
Posted by admin in News
Sanctions on the photovoltaic industry and the anti-sanctions, the Sino-US this is not just a fragment of the Sino-US trade war, China PV industry really has come to life and death of the impasse. Faced the situation of abnormal development of the PV industry since the date of birth, heavily dependent on government subsidies, to rely on more than 90% of exports, overcapacity enterprises have encountered difficulties. These “original sin” has led to today’s industry dilemma.
problem 1st: Heavily dependent on government subsidies
Difficult to say whether because of government over-indulgent, which leads to the PV industry is born with deformities.
The current photovoltaic power generation costs are higher than traditional energy generation, so the countries of photovoltaic power generation are carried out various forms of supplement to compensate for business losses. This year’s national Golden Sun project only an on-going subsidies 9.4 billion yuan; In addition, countries need to of 4GW photovoltaic power generation subsidies of nearly 2 billion yuan.
2011 revenue of 10 trillion yuan, only more than two subsidies equivalent to 0.114% of the country’s financial, and has not been “building integrated photovoltaic subsidies, transportation subsidies and previous years of photovoltaic power generation has been built photovoltaic power plants power subsidies into account.
Subsidies is “double-edged sword”, while promoting the development of PV industry, but also an important factor restricting the development in accordance with the laws of the market “independent”.
problem 2nd: heavy dependence on exports overseas
Rely on exports of one leg, it is no wonder the U.S. sanctions, prompting the industry-wide cry day shout to.
China’s solar photovoltaic industry production capacity, production rank the first in the world, there are more than 90 percent rely on exports. Products in the domestic PV applications in foreign countries, such a market upside down cause serious PV industry controlled by others.
Domestic line PV industry is most worried about is the world’s largest solar market – the EU will not be followed by the United States introduced sanctions. Chinese PV products exports to the EU’s share of 70%, then the losses will not be able to afford.
problem 3rd: PV industry overcapacity serious
PV companies in China “rush” type of development also contributed to an important cause of the winter season arrives.
Example, in Zhejiang, Zhejiang Province, a total of 205 PV companies, of which there are 110 established in September 2010, the scale of 100MW following. The increasing influx will inevitably lead to increased competition. Up to now, the domestic industry profit margin fell from 139% to 20%. Many small businesses close down or stop production, the some of the earlier planning of the project were forced to slow down. GCL, a top executive said: “The current oversupply of at least more than doubled the global market demand of about 20GW production capacity has reached 40GW to 50GW, the excess of 20GW can only be eliminated.”