Several reasons for overcapacity in the domestic PV market
From the initial development and the best investment, the photovoltaic industry has gone through a lot of madness to the current crisis. The domestic market demand is slow, and a large amount of photovoltaic capacity is not consumed. For a time, overcapacity has become the biggest original sin. So, what is the cause of overcapacity in the photovoltaic industry? View 1: The profit is too high A senior Hong Kong-owned enterprise in Hunan said that the reason why PV production capacity is so large is because the profits in the past are too high. In the crazy year of the industry, some links are as high as 50% of profits, which is a pathological phenomenon. Foxconn, the world's largest electronics foundry, has only 5 points of gross profit. A research and development staff of Hebei Hansheng Optoelectronics Technology Co., Ltd. pointed out that the PV profit in the past few years was too high, and it was enthusiastically sought after by the company. Coupled with too much hot money and no investment channels, it was seen that when the photovoltaic industry had high profits. It’s like seeing a straw, and rushing. As the industry enters the integration period, the domestic PV module and raw material industry has bid farewell to the past era of profiteering. After this round of adjustment period, it is believed that the photovoltaic market will gradually return to rationality, and enterprises will face the test of hard power such as R&D, management and cost control. Viewpoint 2: The threshold is too low Some insiders pointed out that the technology of all aspects of the photovoltaic industry can be launched in three to five years. “A production line of silicon wafers, batteries, and components can only be put into production in a few months if it is fast.†The above-mentioned person from Hebei Hansheng Optoelectronics told the reporter that the traditional technology of crystalline silicon is mature, and many equipment manufacturers directly turn the key (turnkey project), and they can do it with money. “In addition, in the entire solar photovoltaic industry chain, component manufacturing has attracted many manufacturers due to its low threshold, low investment and quick effect, which has resulted in a large number of small packaged enterprises.†This has also caused excessive domestic packaging capacity and poor product quality. The situation is not uniform, and the added value of the products is low, and the profit of the component companies is weak and the competitiveness is weak. The industry's entry threshold is too low, resulting in low-level, low-tech construction. Experts in the industry pointed out that there are high technical requirements in the PV industry chain. Few enterprises in China can get involved, and even some links are still blank. China's PV industry, like other manufacturing industries, has the pain of a lack of core technology. A PV researcher from Shanxi showed that domestic research institutions such as the Chinese Academy of Sciences, Shanghai Jiaotong University Solar Energy Institute, Zhejiang University Silicon Materials Laboratory, and Sun Yat-sen University have a large gap in the combination of production and research than foreign institutions. However, their development speed and achievements are worthy of recognition. In the future, relying on China as the world's largest photovoltaic manufacturing base will be able to develop faster. He pointed out that more and more PV companies and domestic scientific research institutions will cooperate to promote the transformation of the achievements of industry-university-research related technologies. These cooperation platforms have also become the cradle of senior R&D talents. Viewpoint 3: Lack of reasonable guidance When the photovoltaic industry was busy in the past few years, local governments did not want to vigorously develop this emerging industry, giving many preferential policies on land, taxation, and bank loans. Photovoltaic development zones and industrial parks across the country were blooming everywhere. The investment promotion policy of “big on the fast†led to the rush of photovoltaic enterprises, blind construction and extensive expansion caused a serious excess capacity. As an emerging industry, PV is far from being fully market-oriented, and government policy support, orderly guidance and timely intervention are indispensable. Many industry insiders pointed out that if the policy is properly guided and the project approval threshold is set, the overcapacity situation will be alleviated. As early as April 2008, Suntech’s CEO Shi Zhengrong expressed concern about the follow-up of PV companies. He said that the momentum of domestic PV companies is worrying, and it is time to set a threshold for PV companies. It is. Nowadays, many provinces, cities and even counties have developed the photovoltaic industry as a pillar industry, but if they are not well cared for, the photovoltaic industry may go downhill. “More importantly, it is necessary to strengthen industrial science planning, rational layout, control scale, and implement strict environmental protection access.†Although there was no lack of rational voice in the industry, it was still unable to resist the succumb to the temptation. The solar photovoltaic industry is still too young, and the process of growth cannot be smooth sailing. Although the road in swaying is not smooth, the experience of harvesting is precious. Recognize the situation and practice internal strength Of course, nothing will exist in isolation, just as there are many reasons for PV overcapacity. At the moment, it is most important for companies to survive the storm. Some PV people pointed out sharply, "Even now, there are still companies that are making money, not all sectors of the industry are losing money, companies should find reasons for themselves." The above-mentioned senior officials of Hunan Hong Kong-funded enterprises said that in the past few months, they have exchanged with their peers. I hope that enterprises can clearly understand the situation, practice their internal strength, and do not rely on the policy of "saving the city." If you wait for the "saving the city", I am afraid that it will be the same as the vain and the advantages of the enterprise. Led Dimmer Module,led light dimmer ,Scr Round Ac Cob Module,Scr Dimming Ceiling Module Shenzhen Isource lighting Co., Ltd , https://www.isourceled.com