Recently, the reporter visited a number of photovoltaic companies found that the recent photovoltaic market warmer, many companies re-start, and gradually turn losses. According to the monitoring data of the China Investment Consulting Industry Research Center, 10% of SMEs nationwide began to resume production in October. The company welcomes recovery hopes, but the problem of overcapacity in the photovoltaic industry is still serious. Experts believe that companies can accelerate the construction of photovoltaic power plants to digest production capacity, but the power plants cannot be built without them. Only by expanding the application market can the issue of overcapacity be truly resolved.

Policy Support Enterprise Resumption

Supported by the New Deal, such as electricity price subsidies, the warm winds of the photovoltaic industry rebounded. The reporter visited a number of photovoltaic companies and found that companies that had been hungry for quite a while had begun to receive new orders. Many of the companies that had stopped work had also regrouped and returned to full operation. According to data from the China Investment Advisors Industry Research Center, there were 10 in the country in October this year. % of SMEs reopened.

Chen Gang, chairman of Guangdong Ai Kang Solar Energy Technology Co., Ltd., told reporters that the market has obviously recovered recently. In recent months, the company’s orders have been saturated, and many small companies have also resumed production. The installed capacity of this year is expected to be 7-8 GW, or even It may rush to 10GW.

The three quarterly report of photovoltaic companies also continuously released signals of recovery. In the third quarter, the battery module supplier Hairun PV realized a net profit of 34.04 million yuan, turning losses in a single quarter; the company’s aerospace electromechanical company realized a net profit of 200 million yuan in the first three quarters, turning a year-on-year profit into losses; in addition, Zhonghuan shares, Longji shares and sunflowers were net in the first three quarters of the year. Profits also increased significantly, by 1962%, 188.07%, and 123.83% year-on-year respectively.

The recent excellent performance of photovoltaic companies has given the market an expected increase in the photovoltaic industry, but some companies are cautiously optimistic about the current prosperity. Photovoltaic price subsidy policy has regained confidence in the market. Chen Gang said that the current trend of resumption of work is mainly affected by the downward adjustment of the price of coal-fired electricity on January 1st next year, and companies have rushed to launch it before the on-grid tariff reduction.

According to the National Development and Reform Commission's policy, photovoltaic power plant projects put into operation on or after January 1, 2014, the distributed photovoltaic power generation system will have more than one amount of electricity for its own use, which will be acquired by power grid companies according to the on-grid tariffs of local coal-fired units. The on-grid electricity price of coal-fired units across the country has been reduced from September 25 this year, with an average reduction of 0.14 yuan/kWh.

Overcapacity situation is severe

The Chinese photovoltaic industry in healing has gradually recovered, but industry insiders reminded that SMEs reopened the market, which is more harm than good for the market. It is not a good thing for the industry to be integrated and may cause the industry order to be destroyed again.

In fact, behind the eager return of enterprises, there is still huge capacity with high inventory. Overcapacity is still a dark cloud on the top of the photovoltaic industry. It is difficult to dissipate in the short term, and it is even harder to loosen the hard-to-find PV industry.

According to data from the China Investment Advisor, in the first three quarters of this year, the overcapacity rate of the photovoltaic industry in China was 40% to 45%. To digest the inventory, the establishment of photovoltaic power plants accelerated, and there are still signs of excess PV power plants.

In addition, the capacity utilization rate of photovoltaic cells and polysilicon is only 57% and 35%, far below the standard line of 75%, and the contradiction of overcapacity is intensifying day by day.

Enveloping the shadow of overcapacity, it is difficult for companies to take a step, but it also adds a lot of mishaps. The person in charge of Guangdong Baowei New Energy Co., Ltd. said that there is a serious and vicious competition in domestic product prices. In order to obtain the market, regardless of profits, companies repeatedly lower prices, some companies offer about 15% lower than the normal price, which disrupts the normal order of competition, it is difficult to guarantee the quality of the project, and even unprofessional migrant workers.

It is worth noting that, in the vicious circle of the cycle, companies are difficult to sustain, and enterprises facing bankruptcy are ultimately trapped by funds, and the capital chain is also a major problem for enterprises.

On the one hand, companies lack of money are subject to the collection and loan of financial institutions such as banks. Chen Gang said that in the absence of a complete improvement in the market, the banks will receive a comprehensive loan collection. Privately-owned small and medium-sized enterprises will not be able to obtain bank loans at all and companies will find themselves in financing difficulties.

On the other hand, due to the lack of orders and the decline in profits, the company’s asset-liability ratio has continued to climb. Ren Haoning, a researcher in the energy industry of China Investment Advisors Co., Ltd., said that the SMEs in key monitoring regions such as Jiangsu and Zhejiang have a debt ratio of 85%. This means that the company has almost no funds available. If there are no more orders, the company will not be able to operate.

Photovoltaic power plants cannot be built only

There will be no qualitative changes in the photovoltaic industry in the next two years, and the overall production capacity will still be surplus. Wu Chenggui, director of the Economic Development Bureau of Sanshui Industrial Park in Foshan, Guangdong, told reporters that in order to digest inventory and resolve excess capacity, companies are struggling to improve their competitiveness.

The excess capacity of the photovoltaic industry is mainly concentrated in the upstream and middle reaches. For this reason, many companies have undergone business transformation. Many domestic companies are moving toward the end of the industrial chain. While maintaining their original business, they will build photovoltaic power plants and use their own components and batteries to find new outlets for their products. The person in charge of Guangdong Baowei New Energy Co., Ltd. stated that the company is also continuing to carry out large-scale power plant projects in emerging markets such as Japan, South Africa, Myanmar and Pakistan.

It should be noted that with the accelerated construction of photovoltaic power plants, production capacity is also shifting. The issue of overcapacity in the photovoltaic industry is gradually shifting from the middle to the upper reaches to the downstream. Enterprises are flocking to the downstream industrial chain and the surplus of photovoltaic power plants will become more and more prominent. Ren Haoning analyzed that.

Industry experts believe that the solution to the problem of overcapacity lies in the expansion of demand. The recent skyrocketing of photovoltaic power plants has benefited from the state's encouragement policy for distributed power plants. As soon as the policy has just arrived, there is a crisis of overcapacity. The root cause is that the current power plant is only No need to build. The centralized photovoltaic power plant cannot be installed. Wu Chenggui stated that there are still practical problems in the development and use of distributed power stations in China. When individual households access, their qualifications, industrial and commercial licensing, guarantee loans and other issues are not resolved. It is recommended that the country as soon as possible Introduce policy rules or operating standards to avoid possible overcapacity risks in advance and ensure that the photovoltaic industry's capacity is digested rather than transferred.

Magnetic Light

We diviided the led light according to the using eviiroment. Most of our product is the commercial LED Lighting

Commercial lighting is a term used to describe lighting that is used in commercial spaces, including auto dealerships, distribution centers, churches, factories, offices, and warehouses. Unlike residential lighting, commercial lighting is made to withstand more abuse and has a longer lifespan.

While the focus of residential lighting is often on aesthetics, commercial lighting is task orientated. Commercial lighting systems are designed based on what the application is. For example, in an office-type setting, you may see task lighting, which illuminates specific areas where employees need concentrated light to be able to perform their jobs.

Magnetic Light,Magnetic Flood Light,Magnetic Led Light,18W Mangnetic Flood Light

Jiangmen Dilin Lighting High-Tech Co., Ltd. , https://www.jmdilinlighting.com

Posted on