China PV industry in early 2011 started to enter the downstream channel, polysilicon, wafer, cell and module prices compared to the previous declines of more than 50% of the business for the huge loss. Financial and pressure, the PV companies either discontinued or have turned on a journey of transformation, extend the industrial chain to offset the traditional business financial vulnerabilities. However, a lot of the transformation of the Chinese PV companies because the details of the policy is not baked impasse can be described as everything is ready, only a strong policy Dongfeng. PV policies, in the end how much distress can save PV companies?
In 2012, China gradually introduced a number of photovoltaic favorable policies, including the work of the views of "good distributed photovoltaic pure sine wave inverter power generation and network services" and "declaration of distributed photovoltaic power generation, large-scale demonstration area, but these views and does not solve the core problem of the photovoltaic industry, subsidies for companies worried about life issues, the problems are not clearly explained when the subsidies in place. This gesture of support is not a country slow to respond to or unaware of the core of the problem, but an upset.
Terms of photovoltaic power generation, China has identified clear years of subsidies and the amount of subsidies, a huge market will be able to quickly start to re-activate the photovoltaic PV inverter industry, if not total control, and even an annual installed capacity of 10GW is a high probability event. As a result, the industry rejoiced that the Government does not buy it, because the amount of subsidy is too large, the Government unbearable. Moreover, at this stage, the National Development and Reform Commission focus not just on new energy industry to transform and upgrade the old energy of the oil, gas and other energy efficiency practices also give strong support to the Government the amount of subsidies must be limited in order to save the photovoltaic industry a clear-cut policy, which is quite upset.
The embarrassment of such a policy hesitantly finally boils down to the cost of photovoltaic power generation, since you need state support, do not be greedy, the cost is not competitive, it can only pilot operation, a large area of the promotion and popularity just wishful thinking approach. By Chinese PV companies are surviving have a mentality that is waiting for the opportunity, many companies project reserves are more than 1GW annual photovoltaic power plants and is a 200-MW, the remaining items are mostly intent, or to seize the initiative.
After all, when national policy after landing, a lot of land, roof asking price will rise, and the PV companies naturally do not want to see this result. The photovoltaic business practice of this kind of waiting will not let myself get out of the crisis, only ushered in a short period of time up to the outbreak of small amplitude, because the commercial market is the basis of the long-term viability of the whole enterprise.
PV companies seek transformation is necessary for survival, but the direction of the business transformation similar margins indeed in power plant construction industry's most high-end, but that does not mean that the profit margins after the maturity of the Chinese PV market be able to maintain a stable and constant. To the European market, for example, any country in Europe does not unrestricted laissez-faire PV market in the country increased, because of the size of the market and the government's financial ability to pay relative, etc., as long as the photovoltaic industry can not be separated from the subsidies, financial problems has been the largest constraints.
Therefore, when gradually expand the scale, the Government reduced accordingly FIT subsidies, the future direction of the Chinese PV market must be consistent and Europe, companies need to make money from the market, rather than profit from the government. Considered from this perspective, the industry must recognize that China's PV after subsidies "era will soon, as long as a substantial increase in installed capacity, policy downlink is inevitable.
From the laws of the market, the differentiation of photovoltaic enterprises is still not formed, Next PV power plant will be fierce competition, competition has led to declining profit margins is inevitable. Restructuring of the industry do not differentiate, that no one I have, I have no man, but the influx of downstream markets continue to be stereotyped. This approach possible to achieve higher profitability in the short term, for example, in 2012 the first "Golden Sun" demonstration project subsidies, many companies one-time gain amounting to billions of government subsidies.
However undeniable that this approach is not scientific, but do not have sustainability after the completion of the power station still take a long time to recover follow-on funding, the government tariff differences subsidies buck-passing, Grid Corporation unreasonable to make things difficult for the enterprise funds flow normal operation planted a major hidden. A healthy market does not need the number of firms, more competition triggered by technological innovation and profit model continues to expand, the Chinese PV market do not have on these two points.