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CN EN
Market News
PV companies' 6 ambivalence
Time:2013-07-11

Core Tip: behind numerous small contradiction is actually determined by a large contradiction, namely that the high cost of photovoltaic power generation, want to spread a large area, can not appear the problem? Final settlement of the plight of the photovoltaic industry is definitely not the government, but the market is also another big government role in promoting secondary market in order to cure. 

1 can not be broken and can not live 

Many leading PV companies such as Suntech, LDK, such as debt ratio in excess of 100%, is almost always impossible to repay its debt, the reason for the death of these enterprises is very full, but can not seem to die. Large net assets have been depleted, the creditor is bound to lose if bankruptcy is a serious, society, government, employees, creditors are unable to bear weight bankruptcy. Therefore, these companies must also be alive, even if business or continuing losses, as long as he does not break the huge contradiction outbreak. Enterprise QiushengbudeQiusibuneng, industry will suffer along with the simple words, since companies if they had died, half dead become the best choice. 

2 can not save and can not save 

Government can create tremendous capacity Fudge companies can waive the cost of land, you can draw the bank, but the government can they save the photovoltaic industry do? The entire PV industry output value over 300 billion yuan, nearly 50 million people in employment, business losses across the board, the government preferred "blood transfusion" approach has been to play to the limit, disguised bailout rescue funding of the moment, I can not save, the key enterprises can No restore its profitability, namely hematopoietic function. 

Corporate recovery of hematopoietic function by two points, first, after the withdrawal of the photovoltaic industry production capacity to reach a balance between supply and demand, "price war" ended, profitable business, it is impossible to achieve this in the short term, because in the first conflict, the author has pointed out that many PV companies have too many reasons not to death. Second, the government raised installed capacity planning through the market to digest excess capacity, companies can also have a way out, but for now, this phenomenon is much less, subsidies are too high, the government unbearable. 

Government can not save the photovoltaic business, only to sustain a market so competitive enterprises to survive, let inferior enterprises gradually withdraw, and "shuffle" Time will continue for several years, so that social conflicts are decentralized, and will not focus on the outbreak. 

Government can not save while PV companies, huge production capacity is the primary responsibility of local government, the government is not going to save the industry must also be put on the domestic market to open a support and attitude, one to reflect their own responsibilities, and secondly, the transfer of business and the media sight. 

? 3. Do not want to, they can not do 

Power Grid Corporation of new energy generation can say no interest, new energy and high-net costs erode the market share of the power grid, power quality as good as thermal power, in fact, inside ten thousand grid companies reluctant to accept new energy generation. Moreover, China is very serious economic downturn, thermal affluence, the "shortage" appears temporarily impossible a few years ago continue to be staged, the grid company did not obtain what benefits the new energy power generation. 

But the company also can not accept the new grid energy generation, new energy industry and national executives have given their tremendous pressure, the grid but was forced to show a gesture of acceptance to a distributed system, this is a big contradiction. Imagine if China really has gotten distributed photovoltaic systems, energy-saving benefits grid companies www.gesep.com Division who is going to protect it? 

4 does not move up, they have to rise 

Almost all of the cells, modules, polycrystalline there is a huge loss for Chinese enterprises, has nothing to do with the market losses of sales, not sales is not clear, the price is too low. Therefore, the Chinese PV companies need to improve if you want to restore the profitability of the product price, or significantly reduce production costs, the latter is less likely, after all, the advantages of large-scale photovoltaic industry and play to the limit, the corresponding increase in space technology needs time. The short term, companies rely on price increases to move up the gross profit margin, of course, a small number of integrated enterprise, through the construction of power plants can be profitable, and thus make up for its shortcomings in the manufacturing sector, raising the price of most companies require very urgent. 

But PV companies to enhance product prices would be difficult because all countries in the world have fallen sharply photovoltaic subsidies, the industry itself has said that photovoltaic power generation has been close to grid parity, significantly enhance the competitiveness of photovoltaic power generation. Photovoltaic products a part of any price increase will be transferred to the terminal, thereby increasing the installed system prices will significantly slow down the PV demand. In short, the industry needs to make trade-offs between efficiency and size, installed both want more, want the high price of the product, which in itself is a contradiction. 

? 5. Want to support, had to drop subsidies 

June 2012, the Chinese government introduced a PV grid parity rules under which subsidies given to photovoltaic 1.15 yuan per kWh, the subsidy to the end of 2012 decreased to 1 yuan / kWh, then the middle of this year, wishing to reduce electricity subsidies to 0.75 ~ dollar, declining subsidies are great speed and strength, and the government support the development of photovoltaic industry mentality seems to be some contradiction. 

In fact, it reflects the energy saving www.gesep.com bricks without straw embarrassment. 2012 PV subsidies should be 5-6 billion funding gap, these funds have still not forthcoming, the government bear the weight of high subsidies, have lowered the amount of subsidies. 

In turn, the Chinese PV companies ask themselves, installed costs within a year industry in the end how much the decline in large-scale distributed generation ground-based power plant 0.75 and 0.4 above, companies dare not continue to build. Government subsidies are not taking into account the lower costs of PV installed capacity change is simply no money to fill. I believe that if there is no secondary push local governments, I am afraid in the existing national policy of the Chinese PV installed capacity will be stalled. 

Want to support one side, one side had to drop subsidies, Chinese PV industry how a "worry" Zile. 

6 can not be built, they can not build 

China large ground station and network by limiting, many provinces have actually unfit to continue construction. In Tibet, part of the power plant due to limited transmission power and had to take turns, with heavy losses. Qinghai Province from 2011 to 2013 after the explosive growth of close to grid limits, the subsequent development potential worrying. 

However, distributed generation alone can not stimulate significant demand for the next three to five years, the Chinese market will occupy the mainstream terrestrial plants, may also occur can not be reduced but can not build embarrassment. 

Anyway, let's photovoltaic industry is facing a lot of contradictions, many of the root causes of this conflict is still not competitive generation costs, companies rely on state subsidies to survive that point, lead to the formation of a reasonable distribution of benefits and civil consumer market. Behind numerous small contradiction is actually determined by a large contradiction, namely that the high cost of photovoltaic power generation, want to spread a large area, can not appear the problem? Final settlement of the plight of the photovoltaic industry is definitely not the government, but the market is also another big government role in promoting secondary market in order to cure.


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