China's photovoltaic "puberty" troubles

China's photovoltaic "puberty" troubles For a long time, China's photovoltaic industry has a high rate of return on profits. The "emerging" industry in the country is very easy to be fooled by the concept and eventually results in being old and not old. Seeing the truth is true, the rich people make very normal, and few people go for a loss-making business. The photovoltaic industry is just that.

According to Moody's statistics, by the end of 2010, photovoltaic manufacturers from China accounted for about two-thirds of the global production capacity of the industry. However, from the demand point of view, China's domestic demand for photovoltaics accounts for only 3% of the world, so most of the equipment is exported to major markets such as Europe. At present, governments in various countries have significantly reduced their support for the solar photovoltaic industry. China, the largest producer in the photovoltaic industry, is still expanding its production capacity on a large scale. These factors will lead to a decline in the profitability of solar photovoltaic companies.

Today, the Chinese PV industry, which once took a certain market initiative, is facing a serious crisis of survival that is changing from the seller's market to the buyer's market.

For the big cake of the photovoltaic market, only a few companies participated in the process, and the situation of supply and demand is long gone. After all, no place or industry in the world is a legitimate business that can steal and do a lot of money. New industries such as the photovoltaic industry are certainly not. As long as someone can think of it, Others can think of it and do it first. In a real society, technology, capital, and talent are all extremely simple.

Once upon a time, there were few people interested in the subsidy projects for photovoltaic power generation in the domestic market. It is really not about the patriotic enthusiasm of domestic PV manufacturers. It is really that the return rate of overseas markets is much higher than that of the domestic market. At present, changes in the international environment, subsidy and general decline, more gluttony and less domestic business, the days of domestic companies are not good, and adopting a variety of ways including "price wars" to win profits also appears to be "pure."

As a new industry, emerging markets have not yet been fully developed, and companies in the industry are prone to unfair competition. At present, domestic photovoltaic companies are in the stage of “puberty”: they are rapidly growing, mature, and highly malleable. At this stage of puberty, there may be such features as "puppy love", "autism", "rebellion", "angry youth", "simpleness", "blindness", "incitedness", "craving", "willfulness", etc. Will have. The price war is precisely the performance of China's photovoltaic “turbulence”.

For PV companies in China that are relatively vulnerable to “adolescence”, if they want to “grow and thrive,” they need to face the changes in the market in a more rational way. In this case, they must accept some “mental counseling” and “drainage”.

First and foremost is to establish a long-term strategic vision for photovoltaic companies. Do not use "angry youth". In the 2009 Dunhuang 10MW Project Bidding, a price of RMB 0.69 was quoted. Later, domestic enterprises also displayed a price of RMB 0.72 in other bidding projects. Such a low price does not represent the level of development of the entire industry. What makes the industry feel like rain, really blaming the gap! It cannot be denied that some PV companies have great advantages from technology to cost, but such relatively unreasonable competition will result in the loss of the interests of the entire industry. There is nothing in the domestic market to suppress prices. After all, domestic PV prices have not been formed. However, if the “price war” is launched on the world stage, it must go online. This will not only damage the domestic market environment, but will also affect the international market. Market balance. What's more, the “price war” has started to make some ultra-low prices so that Europeans feel at ease, and they can't make people knock on the drums of the WTO one after another, tell you to dump, and you can't eat it.

"Survival or destruction, this is a problem." Companies that are new to photovoltaics need to be assessed for market risk. This is also a coaching project. According to information from the industry, due to a large amount of money flowing into the photovoltaic industry some time ago, the enterprises in the industry have been mixed, and are concentrated in the middle and lower reaches of the photovoltaic industry chain. In the current global PV major adjustment, China is bound to have a large number of PV companies in the next two or three years will face the risk of eliminating the market.

It is true that PV has risks and caution must be exercised. However, China's photovoltaic industry will gain qualitative improvement in this pain, and it will grow and grow. By then, a large number of companies will be cleared out of this industry, which will be the “gifting ceremony” of China's photovoltaic industry.

The government's policy support on photovoltaic development is another important guidance. The major countries in the world have formulated the photovoltaic industry policies. China is actually a little bit slower in this step. Faced with Europe's already mature photovoltaic industry policy and solar PV power grid pricing, despite the "long-awaited response," the country's photovoltaic policy and unified benchmarking price have not come out. Subjectively, the difference in cost and technology between PV companies in China has led to different price standards in different parts of the country. Objectively, there is a big relationship between “out of market” and China’s national conditions. We have large country sites and geographical differences. It is also large, the west and the east, the south and the north, and the sunshine conditions are far from each other. In this case, the government's pricing is inconvenient. The good news is that although the country does not have a clear plan, many local governments have actually adopted a large number of supportive policies, especially investment in scientific research and technology. The investment in scientific research is an important means to solve the embarrassing situation of China's photovoltaic “two ends out”, and we also see this situation is being reversed step by step.

For some photovoltaic companies, the “danger of survival”, in this period of major changes, major developments, and major adjustments, who can survive the “winter” of two or three years, who will usher in a bright tomorrow. Regardless of the short-term or long-term perspective, overseas markets are absolutely the main position of the photovoltaic industry. China's PV companies need diversified development, but they also need unified appeals, organized participation in international competition, and maintaining their own interests in this process, so that they can have their own position in the new wave of development, thereby avoiding China's photovoltaic industry has become the second rare earth industry."

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