Photovoltaic industry starts again

The domestic market has been opened, but PV companies that only focused on the international market have realized that there is bound to be a risk in a single market. They must learn to walk on two legs, and both domestic and international markets are equally important.

In 2013, there was a serious overcapacity in China's PV industry, and the domestic application market was underdeveloped. At that time, the industry believes that China's photovoltaic industry market is over-reliant on external demand, and more than 70% of its products are exported to European and American markets. As the global PV market demand weakens and the EU implements “double opposition” to China's PV products, the resistance of China's PV products is increasing, and PV companies are generally operating difficulties. After three or four years, has the environment for the development of the photovoltaic industry changed? How are PV companies?

High-speed growth has brought growing troubles

Looking back on the development of the photovoltaic industry for more than a decade, the roller coaster-style ups and downs can be described as thrilling.

At the beginning of the 21st century, the output of solar modules in mainland China accounted for only 11% of the world's total, which is about a quarter of Japan's output at that time. Among them, polysilicon production is 80 tons, more than 95% need to be imported.

Soon, the photovoltaic industry broke out miraculously and experienced a veritable barbaric growth. In a few years, China's production in the four major production sectors of polysilicon, silicon wafers, battery cells and battery components ranked first in the world. At present, the output has been the first in the world for many years, and the proportion of some varieties is even as high as 80%.

High-speed growth also brings growth troubles. The export-oriented and developed photovoltaic industry, due to the "double opposition" of European and American countries, the overseas market has been greatly affected. In addition, during the "Eleventh Five-Year Plan" period, domestic new energy is focused on wind power, and the huge capacity of photovoltaic manufacturing industry is rapidly oversupplied. Many enterprises have gone bankrupt, and leading enterprises have stepped into the bankruptcy.

However, by 2016, the days of Chinese PV manufacturers are generally good. According to statistics, among the 42 listed companies with photovoltaic panel business, 39 have achieved profit growth, and 11 have increased by over 100%. Wang Bohua, secretary general of the China Photovoltaic Industry Association, revealed that the average monthly export value of China's PV products in 2016 was 1.17 billion US dollars. The industry generally believes that the photovoltaic industry is still facing overcapacity, and some enterprises still face pressure, but overall, they have climbed from the bottom.

Professor Xu Qinhua, director of the International Energy Strategy Research Center of Renmin University of China, believes that this is due to the timely adjustment of China's industrial policies, the improvement of corporate innovation capabilities and the correct market strategy.

Promote industrial restructuring, survival of the fittest

For an industry to develop healthily, it must focus on both international and domestic markets. The dilemma of the previous round of photovoltaic industry is to rely too much on the international market. Therefore, to crack the photovoltaic dilemma, we must make huge capacity in the country also find a place to use. In response to the crux of the problem, governments at all levels have issued a series of support policies in a timely manner during the “Twelfth Five-Year Plan” period.

Wang Bohua introduced that among these policies, the “Several Opinions of the State Council on Promoting the Healthy Development of the Photovoltaic Industry” is the most important, with a clear emphasis on curbing the blind expansion of photovoltaic production capacity. The opinions require that the market mechanism be used to promote the structural adjustment of the photovoltaic industry, the survival of the fittest, the optimization of layout, and the development and utilization of the basic role. Different treatments will be implemented for different PV companies, with emphasis on supporting the development of key enterprises with high technical level and strong market competitiveness, and eliminating inferior enterprises.

After the release of the opinions, the National Development and Reform Commission, the Ministry of Finance, the Ministry of Industry and Information Technology and other departments have intensified the policy documents supporting the development of the photovoltaic industry, involving product manufacturing, market applications, fiscal and taxation, prices, subsidies, land management and other industrial development. Relevant policies and measures have also been introduced in various places. According to incomplete statistics, as of October 2015, there are 18 provincial, 38 prefecture-level and 21 county-level local governments.

With these policy support, photovoltaic power plants have emerged rapidly. According to the statistics of photovoltaic power generation released by the National Energy Administration, as of the end of 2016, the newly installed capacity of photovoltaic power generation in China was 34.54 million kilowatts, and the cumulative installed capacity was 77.42 million kilowatts. The newly added and cumulative installed capacity were the first in the world.

Such a huge photovoltaic power plant market naturally drives the development of the industry. China Photovoltaic Industry Association data show that in 2016, polysilicon production was about 194,000 tons, up 17.6% year-on-year; wafer production exceeded 63GW, up 31% year-on-year; cell output exceeded 49GW, up 19.5% year-on-year; module output was about 53GW, It increased by 15.7% year-on-year.

Say goodbye to simple copying and increase innovation

“Simple imitation and reproduction is the root cause of the dilemma of the photovoltaic industry. Therefore, we began to increase the intensity of independent innovation, investing nearly 100 million yuan in research and development each year, accumulating micro-innovation and enhancing product competitiveness.” Cao Renxian, Chairman of Sunshine Power Say. In 2011, China's PV companies were “most painful”, and Sunshine Power continued to develop steadily and completed financing in the same year.

Zhong Baoshen, chairman of Longji Co., Ltd. introduced that through technological innovation, the non-silicon cost of Longji shares decreased by 33.98% year-on-year, the cost of pulling crystals and slicing also dropped rapidly, and the market competitiveness of products was greatly improved. Longji shares also cooperated with the University of New South Wales in Australia to develop low-attenuation LIR technology, which is the first to solve the initial problem of photovoltaic cells that have plagued the industry for many years. At present, the technology has been industrialized, and the international competitiveness of enterprises has been greatly enhanced.

Differentiation and equal emphasis on both markets are also important factors for companies to get out of the bottom. For example, Le Ye PV, which was established at the end of 2014, focuses on high-efficiency single crystal products through differentiated positioning. In 2015, its monocrystalline components ranked first in global production and sales. In the case of a serious excess of silicon wafers, Le Ye single crystal silicon wafers are in short supply.

The domestic market has been opened, but PV companies that only focused on the international market have realized that there is bound to be a risk in a single market. They must learn to walk on two legs, and both domestic and international markets are equally important.

Although facing the "double opposition" in Europe and the United States, many companies such as Trina Solar, Jinko Energy, and GCL Group have increased the layout of other countries and regions, or used factories to change markets, and strive to expand overseas markets.

“Overseas markets are not only European and American markets, but other markets are also very broad.” Gao Jifan, Chairman and CEO of Trina Solar, introduced the products to more than 60 countries and regions in the world in 2016, including South America, the Middle East, Southeast Asia, etc. Emerging Markets.

The construction of “One Belt, One Road” also brings opportunities for PV companies to explore overseas markets. Qian Jing, vice president of Jinko Energy, said that during the construction boom, Jinko Energy took technology and capital to Southeast Asia. The Jingke Energy Malaysia production base has been completed and put into production. The annual production capacity of photovoltaic cells is 1.5GW, the components are 1.3GW, and the annual output value is 450 million US dollars. This is the largest investment and largest output value of China's PV companies in the countries and regions along the “Belt and Road”.

Knock Box

Stainless steel coffee knock box ,different style and different size for you to choose.