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China's photovoltaic "puberty" troubles

Release time:
2017/06/07 21:11
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For a long time, China's photovoltaic industry has had a very high return on profits. "Emerging" industries are easily fooled by the concept in the country and eventually lead to the old ones. Seeing is true and hearing is false. It is normal for people to make money when they are rich. Few people do business at a loss, as is the case in the photovoltaic industry.

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

Today, China's photovoltaic industry, which once occupied a certain market initiative, is facing a serious crisis of survival from "the seller's market to the buyer's market."

This big cake of the photovoltaic market was only attended by a few companies, but the situation of supply shortage is long gone. After all, there are no places and industries in the world where you can sneak away from legitimate business and make a lot of money. Emerging 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 real society, it is extremely simple to compare technology, capital, and talent.

Once upon a time, the subsidy projects for domestic photovoltaic power generation tendering were rarely talked about. It really has nothing to do with the patriotic enthusiasm of domestic photovoltaic manufacturers. It is that the return rate of overseas markets is much higher than that of domestic markets. At present, the international environment is changing, subsidies are falling, there are too many monks, and domestic companies are having a hard time. It has become "innocent" to win profits by adopting various methods including "price wars".

As an emerging 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 suddenly in the "adolescence" stage: rapid growth, gradually mature, and extremely plastic. At this stage of puberty, there may be signs such as "early love", "autism", "rebellion", "anger", "simple", "blind obedience", "hypermania", "willfulness" and so on. The same is true of the current Chinese photovoltaic industry Would have. The price war is precisely the performance of China's photovoltaic "agitation".

Chinese photovoltaic companies, which are relatively fragile during their "adolescence", need to face market changes in a more rational way if they want to "grow thriving", so they must accept some "psychological counseling" and "grooming".

The first and foremost is to establish a long-term strategic vision for photovoltaic companies, and do not play with "angry youth." In 2009, the Dunhuang 10MW project bidding reported a price of 0.69 yuan, and later domestic enterprises appeared in other bidding projects at a price of 0.72 yuan. Such a low price does not represent the development level of the entire industry. It made the industry feel as if it were raining, sighing the gap! It cannot be denied that some photovoltaic companies have great advantages from technology to cost, but such relatively unreasonable competition will lead to damage to the interests of the entire industry. It is okay to squeeze prices in the domestic market. After all, domestic photovoltaic prices have not formed, but if the "price war" is hit on the world stage, it will go online, which will not only destroy the domestic market environment but also affect the international market. Market balance. Besides, when the "price war" started, why did Europeans find it extremely low to make people feel bad, and they could not let others beat the WTO one after another, telling you to dump, can't you eat it?

"It's a question of survival or destruction." It is a mentoring project for companies newly entering the photovoltaic field to urgently need market risk assessment. According to news from the industry, due to the influx of large amounts of funds into the photovoltaic industry some time ago, the good and bad of the enterprises in the industry have been uneven, and excessive concentration has been concentrated in the middle and lower reaches of the photovoltaic industry chain. In the current global photovoltaic adjustment, China is bound to have a large number of photovoltaic companies in the next two or three years facing the risk of eliminating the market.

It is true that photovoltaics are risky and you must be cautious when entering the industry. However, China's photovoltaic industry will receive a qualitative improvement and growth in this pain, and a large number of companies will be cleared out of this industry, which will be a "maturity gift" for the Chinese photovoltaic industry.

The government's policy support for photovoltaic development should be another very important guide. Major countries in the world have formulated photovoltaic industry policies one after another. China is really a bit slow in this step. In the face of Europe ’s long-established photovoltaic industry policies and pricing of solar photovoltaic power generation on the grid, despite the “plenty of calls”, the national-level photovoltaic policy and unified benchmark electricity prices have never come out. Subjectively, the differences in cost and technology of photovoltaic companies around China have led to different price standards in various places. Objectively, "cannot get out" has a great relationship with China's national conditions. Our country has a large territory and regional differences. It is big, the west and the east, the south and the north, and the conditions of the sun are far apart. In this case, government pricing is not convenient across the board. The good thing is that although the state does not have a clear plan, many local governments have in fact adopted a large number of support policies, especially investment in scientific research and technology. Investment in scientific research should be an important way to solve the embarrassing situation of China's photovoltaic industry.

For some photovoltaic companies, the "critical autumn" is in this period of great change, great development, and great adjustment. Whoever can survive the two or three years of "cold winter" can greet a bright tomorrow. No matter in the short-term or long-term, the overseas market is definitely the main position of the photovoltaic industry. Chinese photovoltaic companies need diversified development, but they also need unified demands, organized participation in international competition, and the protection of their own interests in the process, in order to have their own position in the new wave of development, thereby avoiding China's photovoltaic industry has become the second rare earth industry. "