China's PV companies still have a difficult road ahead

Since 2011, in the photovoltaic industry, Chinese PV companies have experienced many unfair treatments. For example: The United States "double reverse case." Recently news came again: The British government has cut its PV subsidies and appealed to local PV companies. The British government still insists that it is necessary to cut subsidies in order to protect the on-grid tariff subsidy program budget and allow solar subsidies to achieve sustainable development. At the same time, the German government is also planning to take action against the German Solar Energy Federation and is expected to file a complaint with the European Union at the end of March to sue the European Union to sue China for cheap dumping of PV products. France, Spain, and Italy have also reduced subsidies for photovoltaic power generation.

From the above reports, many countries around the world have expressed their dissatisfaction with the export sales of photovoltaic companies in China and even they have taken action to boycott China's photovoltaic products into their countries. They are doing this to protect the interests of their domestic photovoltaic companies. Personally, if PV companies really have a competitive advantage, their companies can compete fairly with Chinese PV companies.

In mid-December 2011, the spot price of polysilicon dropped to US$25/kg, which is even lower than the production cost of most polysilicon companies. At the same time, more than 90% of polysilicon enterprises in China have entered the shutdown state, and only three or four companies are maintaining production.

Compared with last year's photovoltaic product prices, the prices of polysilicon and photovoltaic modules and solar cells have gradually bottomed out. As of the end of last week, the spot price of polysilicon has gradually increased, rebounding from the lowest price, and the prices of photovoltaic modules and solar cells also rebounded slightly.

Here are some data to show that the development of the photovoltaic industry is actually getting better:

In early February, data from the European Photovoltaic Industry Association (EPIA) showed that the installed capacity of photovoltaic power generation in the world exceeded 27.7 GW in 2011, a year-on-year increase of 67%.

Although speaking from the statistics of polysilicon price and installation amount of photovoltaic power generation, for the photovoltaic companies, the overall situation has indeed improved. However, if the governments of Germany, the United States, and the United Kingdom continue to insist on the dumping of China's PV companies, they have to appeal or take anti-dumping measures, so the development path of China's PV companies is still very difficult.

It is advisable for China's PV companies to strictly control product quality and timely adjust product mix so that they can actively respond to the anti-dumping strategies of European countries.

Of course, the entire market situation is not dark. At present, there are also some Eastern European markets. We can still explore and develop photovoltaic companies in China, such as Ukraine. According to a recent photovoltaic website report, Ukraine built the largest photovoltaic power station in Europe in December last year, and its solar subsidies are also one-third higher than other countries in the region. Driven by these factors, Ukrainian solar photovoltaic power generation is expected to double this year.

If China's PV companies still want to continue development, they may consider replacing the target sales market and try to move in the direction of their own development.

All in all, the current advancement of China's PV companies needs further exploration and exploration. Their road ahead is still very difficult.