Unreasonable structure of solar photovoltaic market leads to industrial disorder

In the past 12 months, the price of solar photovoltaic power generation dropped sharply, making solar energy more affordable than ever before. It is hoped that this will help maintain reliance on renewable technologies and offset the recent obstacles to cutting solar subsidies.

For solar-powered investment, the owners of solar energy systems to reduce their energy consumption bills, the average price per kilowatt-hour for solar power systems is 28% lower. According to data from the Solar Energy Guide, the average cost for consumers to pay for solar PV installations is 4,445.95 pounds per kilowatt-hour. In October 2011, this price dropped by 27.87% to 3,206.96 pounds.

Due to the unreasonable structure of the PV market, over-reliance on foreign markets has led to hundreds of Chinese PV companies.** Chengdu is relying on international sales, especially the European market. Over the past few years, both the industry leader and many small and medium-sized enterprises, they have not been very good at studying in depth how large-scale promotion and application of solar energy products in China's large cities and rural areas. Even the most familiar photovoltaic glass curtain wall has been talked for so many years. In major cities such as Shanghai and Beijing, it has hardly been used in new buildings and building remodeling. Imagine that everyone enthusiastically dreamed of gold rushes in Europe and the United States. They did not even consider the risk of fluctuations in foreign markets and did not concentrate on opening up the domestic market.

On the one hand, it is due to the developed market economy and the necessity of capital for profit; on the Other hand, it is also related to the overheating of local governments' development of new energy industries. This phenomenon has occurred in many industries. However, it is believed that the overcapacity phenomenon in the photovoltaic industry in recent years is particularly devastating, and it is also related to the continuous follow-up of domestic and foreign venture capital investment. This allows each PV company to hold the motive of making money in foreign capital markets. Interviewed with several private and small and medium-sized photovoltaic companies, they "have to say to the Nasdaq", all thinking "regardless of the company's effectiveness, to overseas listed money to say." It is precisely this way that the bubble of the Chinese PV industry is getting bigger and bigger, and when the bubble bursts, it will inevitably spread wider and hurt more. This point must be vigilant for any high-tech industry that is concerned by venture capitalists.

As the European debt crisis caused the shrinkage of the solar energy market in European countries, as well as the disorderly competition and capacity expansion in China's domestic market, the photovoltaic industry's revenue declined in recent months. The Chinese listed photovoltaic giants such as Trina Solar, Yingli Green Energy, and Wuxi Suntech have suffered serious losses this year. The stock price has fallen by more than 70%. Suntech's current stock price is only around US$2, and its stock price has reached a maximum of 85. Dollars. What is even more worrying is that in 2008 China's PV companies were less than 100, and so far it has expanded to more than 500 companies. The current domestic production capacity is estimated to have reached 30gw-40gw, and the global installed capacity of photovoltaics is expected to reach 21gw in 2011, that is, It said that even if China uses photovoltaic cells in the world, China still has 1/3-1/2 of its production capacity to be vented, and factories have to close their doors.