Photovoltaic Industry Seeks Market Breakthrough

Affected by adverse effects such as the “double reverse” of China’s photovoltaic products in China and the United States, and serious overcapacity in the domestic industry, the domestic photovoltaic industry has been severely hit and has fallen into a depression. How to change the business development model and find new markets has become a photovoltaic production enterprise. The problem.

The disadvantages of the global market Solar photovoltaic, since its inception has been the country's strong support of the sunrise industry, is gradually overcast a cloud.

In March this year, the European Commission stated externally that since March 6th, compulsory import registration of PV products from China will be registered, which means that the European Union’s dual retrospective period for PV products in China is established, ie on June 6th. After the EU rules the double taxation rate, it will also impose an additional tax rate on the EU's PV products for the three months. Analysts said that this policy may trigger European PV importers to panicly reject Chinese PV products.

It is not the first case that the photovoltaic industry in China and abroad are facing sales barriers. Last year, China-Europe PV just experienced a nine-month life-and-death game. In January 2012, several countries in Europe announced plans for the reduction of photovoltaic subsidies. In September of the same year, the European Commission issued an announcement to initiate anti-dumping investigations on photovoltaic panels, photovoltaic cells, and other photovoltaic modules imported from China. In this regard, a person from the Photovoltaic Industry Association believes that this dual-anti-economy policy in Europe and the United States will have a huge impact on China's solar photovoltaic companies. After the EU’s dual anti-primary review in June, the Chinese PV industry will face the moment of survival, “at least half of the photovoltaic The company will go bankrupt and bankrupt."

It is reported that from the upstream polysilicon to the downstream component factories, the current decline in the performance of the entire photovoltaic industry chain has become the main tone. According to statistics, there are 32 listed companies with PV as their core business or PV as the core business in the two cities of Shanghai and Shenzhen. There are 13 companies with pre-losses, accounting for 42%; 12 companies with pre-reductions, accounting for 36%; only 4 companies have pre-increase. .

Large-capacity countries in the production of gold Sun demonstration project, according to the degree of subsidies ... ... For the development of solar photovoltaic industry, China has given strong support over the years. As early as 2001, the country launched the “Bright Project Plan” to solve the problem of electricity consumption in remote mountainous areas through photovoltaic power generation. As of 2010, there are 16 photovoltaic companies listed overseas in China, and China has accounted for 4 of the top 10 photovoltaic cell modules and polysilicon production respectively. During its heyday, the solar photovoltaic companies, LDK and Suntech, each had a market value of up to 10 billion U.S. dollars.

However, what is embarrassing is that China's solar photovoltaic industry has the world's largest production capacity and output, but more than 90% of its products rely on exports. Product production in the country, but it is applied abroad, such a market upside down led to the photovoltaic industry is severely controlled by others. “When the photovoltaic industry first emerged, not only was there preferential policy subsidies, but also there was a huge market gap in foreign countries, and many enterprises were intractable and tactile. As a result, the results became barbaric growth that was difficult to accept, making the photovoltaic industry positive. Overcapacity. Also caught up with the EU's implementation of 'double reverse' for China PV, domestic photovoltaic companies will face the most difficult period." Liu Linli, marketing director of Shandong Linuo Solar Power Group said.

Liu Jianli calculated an account for the reporter. The global solar photovoltaic industry output is 40GW per year and the installed capacity is 22GW. At present, China's annual output is 23GW, but the domestic installed capacity is only 3.5GW, that is, after satisfying domestic demand, Each year, China will have 18.5 GW of surplus production, which must be exported to foreign countries. If the export channels are blocked, this surplus will be hard to consume. From the perspective of production capacity, of the more than 40 polysilicon enterprises that have been put into operation in China, only 78 are still under construction. The utilization rate of the entire industry is less than 50%.

According to Li Junfeng, director of the Academic Committee of the Energy Research Institute of the National Development and Reform Commission, the PV industry has experienced a "growth trap" since 2007, and excessive investment has disrupted the supply balance of the market. Data show that in 2007, the photovoltaic industry's return rate of up to 200% -300%, and in 2011 there was only 10%. Li Junfeng said that the development of China's solar PV industry is a process of "creating myths - copying myths - breaking through myths". "Later investors can completely copy the former model. Because component manufacturing is easy to replicate, there is no innovation."

The new way out for private power companies is the difficult photovoltaic industry. It is not a new turning point. Industry insiders pointed out that the introduction of the new distributed power grid policy will help the development of private solar power companies and inject more fresh energy into the solar PV market.

Install a solar generator on top of their own building, use their own power for their own use, and surplus electricity can also be sold to the national grid. This dream is a step by step into reality. From October of last year to the present, the State Grid has continuously issued policies to encourage individual individuals to use new energy to generate electricity, and has given preferential offers in connection with the grid.

In addition to Qingdao’s Xu Pengfei’s self-built personal photovoltaic power generation system and its successful integration into the power grid, a person in Dongying also used his own house to build a set of 3000-watt photovoltaic power generation system and merged into Shandong in February of this year. Grid.

Liu Jianli said that residents are self-generating as a type of small-scale distributed power plant. For now, it takes 10 to 20 years to recover costs. It is difficult to see benefits in the short term, but with the reduction of equipment costs and related administrative approval systems. The simplification of the future is expected to develop into a part of the market for sales of photovoltaic products. However, it is really expected to help the solar PV industry to face difficulties and open up new markets is the country's newly introduced policy to support the development of distributed power plants.

In November last year, the State Grid Corporation of China issued the “Opinions on the Implementation of Distributed Power Generation Grid Connection Services (Interim)”. Since November 1st, the domestic distributed photovoltaic power generation project will enjoy full-time free grid-connected services. Can be used for personal use, spare net surfing. Prior to this, photovoltaic power generation "difficulties in grid integration" has been the bottleneck of new energy development. “In the past, state-owned enterprises had an absolute advantage in solar power generation. The introduction of this new policy allowed private enterprises to stand on the same starting line with state-owned enterprises. It is a good turning point for private PV companies to transform their business development model and open up new markets.” said Liu Jianli. Although the price of electricity for residents in China is low, it is not worthwhile to use distributed photovoltaic power generation. However, the prices of industrial and commercial electricity in various regions generally exceed RMB 1 and the use of distributed photovoltaic systems has a certain degree of economy. The domestic distributed photovoltaic market may come from industrial parks, Enterprise factory buildings, economic parks and other concentrated demonstration areas start.

Liu Jianli said that photovoltaic companies should return to rational management and must be “grounded” and cannot expand blindly. Moreover, companies represented by Suntech are mainly engaged in the production of crystalline silicon solar cells, modules, and other photovoltaic applications, and have not developed end products, leaving the product almost entirely dependent on exports. This "speculative" development is not a long-term path. He believes that traditional photovoltaic production and manufacturing companies should promptly change the business development model, build solar power stations, while doing product exports, but also to achieve self-digestion, is the solar photovoltaic companies to extend the industrial chain, the key to sustained development. “For Linuo, the annual solar PV production is 300MW, but the company can consume 200MW a year in its own power plant, and only 100MW will not be sold without going out,” Liu Jianli said.