China's PV industry faces major changes

According to EnergyTrend, the financial crisis in 2008 once caused the highly energetic Chinese PV to fall to the bottom: Nearly 30% of domestic companies are on the brink of bankruptcy, and 70% of companies stop business, suspend production, or limit production. Many companies that are expected to invest in domestic PV companies are starting to wait and see... ... In 2011, following the financial crisis in 2008, the photovoltaic industry storm once again swept across the country, and photovoltaic companies faced a new round of difficult times and were worried.

The main market "shrinks" photovoltaic companies into panic European government subsidy cut down the number of assembly companies that evoked the transformation of photovoltaic companies. The order volume of domestic photovoltaic companies fell, the phenomenon of backlog of production capacity was highlighted, and the photovoltaic companies were affected. These are common phenomena in the industry. In 2011, there will undoubtedly be an indelible stamp in the development of the photovoltaic industry.

Analysis of the status quo, in which blind investment, overcapacity of projects and different standards are the fundamental factors that affect the healthy development of China's photovoltaic industry. In addition, the long-term effects of photovoltaic companies are subject to the decline in immunity. The cold wind in Europe has caused severe PV damage in China. There are a series of illnesses such as price pressure, signs of inventories of polysilicon, and the overall profitability of the photovoltaic industry chain. The chain reaction of the photovoltaic industry caused by the subsidy of the European photovoltaic policy has caused all PV companies to rethink the PV situation they are facing.

National Quality Inspection: Photovoltaic industry faces major changes In early May, the 2011 3rd Guangzhou International Solar PV Exhibition Operations Expert Group stated that “2011 is a year in which the photovoltaic industry in China and even the world has been surging. The market is strictly controlled and the photovoltaic market is weak. Therefore, pressures at all levels of the upstream and downstream photovoltaic industry chains are increasing. With the surplus capacity of the photovoltaic market, only the product quality can sustain the long-term development of the company. Many small and medium-sized enterprises that seek short-term benefits will certainly not be able to flee.

According to recent sources, starting from June 1, AQSIQ will launch a nationwide inspection of the quality of solar electronic components, clean-up and eliminate the manufacturers of products that are not of high quality. The inspection will last for three to six months. Time shows that the solar photovoltaic industry in 2012 will face major changes. Now the photovoltaic market has been different from the past - "there is a market for products," and the gross margin of the past can be as high as 30% when it comes to components. Formerly, many investors left home to invest in the photovoltaic industry, and the price in the industry is now killing blood. Chenghe is not surprising. The components have also dropped to 10%-15%.

According to industry sources, the current overcapacity has caused a direct decline in the profit margin of photovoltaic components. Some companies blindly relying on short-term profits have mixed feelings, and they have even fallen into a difficult position. This is in contrast with photovoltaic companies who have sought short-term profits. The original intention of investing is very different. Before photovoltaic companies tried their sweet profits, they suddenly faced such a big storm. Some companies are bound to be at a loss. An unprecedented PV industry storm has already come.

The profits of photovoltaic companies continued to decline In 2011, there were too many changes in the photovoltaic industry, the market continued to decline, profits fell all the way, and the financial crisis was comparable. The photovoltaic industry was at the most critical moment since the financial crisis in 2008, and faced with changes in the industry. Many people in the industry have different opinions.

In an interview with a reporter, a board chairman of a photovoltaic company in Zhejiang Province said, “2011 is the first year for PV companies to go through the exams. It is quickly known to be the champion, second place or exploratory flower. I have waited for this moment for a long time. The photovoltaic market has not been strict in previous years. The quasi-entry rules have led to a large number of poor-quality, low-tech PV products that have disrupted the market with low-cost advantages. These changes will lead to a new pattern in the PV market. Some companies that do not follow the 'ruling' will be Eliminating out of the game will be conducive to orderly competition in the industry.” This represents the view of a large number of powerful companies seeking development through quality and service.

The 3rd Guangzhou International Solar PV Exhibition analyzed the current market situation from a broader perspective. “China is a big country in PV production and sales, but with the opening of the global PV market, they are faced with not only the current problems, but also the photovoltaics in Southeast Asia. The industry is also rapidly growing up, and the development trajectory is exactly the same as in China – the local market has not yet fully opened, and product exports are the main path for the development of local photovoltaic companies. In contrast, many Chinese PV companies may be able to guarantee sufficient orders, but Southeast Asia The latecomer advantage of PV companies will pose no small threat to the Chinese market. With the further release of global PV capacity in 2012, the Chinese PV industry will face a new round of price reduction crisis.”

Photovoltaic companies are being squeezed by profits, and the rapid expansion of photovoltaic companies and the temporary market shrinkage that they may face in the short term have caused many companies to enter into operational difficulties, and it is difficult to open up the situation. In this special period, photovoltaic companies are struggling to ensure a sustained and healthy development between the squeezing of wheeled profits.

“Under intense market competition, no one can deny that the photovoltaic market has great potential for universalization. The most pressing task for PV companies that want to develop in the long term is to sort out the development ideas of enterprises and do something wrong. Improve product quality and brand awareness, strengthen brand building, and quickly capture the commanding heights of the photovoltaic market.” Under the swift and windy photovoltaic economic situation, the recommendations made by market experts at the 3rd Guangzhou International Solar PV Exhibition 2011 made PV companies People’s confidence is doubled.

In the special development period of the photovoltaic industry, although the government and the exhibition are indispensable as the “behind the scenes,” the protagonist is always the enterprise. In order to win the PV market, we must follow the pulse of the preemption and follow the pulse of the market. Those who can win and fight in the cold spell of the early spring will be eligible to win the entire spring of the PV market.