Hubei Photovoltaic Large-scale Households Are Forced to Upgrade

Hubei Photovoltaic Large-scale Households Are Forced to Upgrade On the 17th, the Ministry of Industry and Information Technology released the "Regulations for Photovoltaic Manufacturing Industry" (hereinafter referred to as the "Regulations"), which increased the access threshold for photovoltaic companies. The reporter learned from an interview yesterday that this indicates that before the end of this year, the Hubei photovoltaic industry may set off a wave of mergers and reorganizations.

Improve access to photovoltaic companies

The “Specifications” set a very specific standard for photovoltaic companies from the aspects of production layout and project establishment, production scale and technology, comprehensive utilization of resources and energy consumption, environmental protection, and quality management, and improved access thresholds.

For example, in the aspect of production layout and project establishment, photovoltaic manufacturers are required to strictly control the newly-increased projects that simply increase production capacity; at the same time, the minimum capital ratio is 20% for newly-built and expanded PV manufacturing projects. In terms of production scale and production technology, photovoltaic manufacturers are required to spend R&D and process improvements every year, which is no less than 3% of total sales and no less than 10 million yuan. In terms of quality management, it is stipulated that enterprises should pass ISO9001 quality management system certification, the service life of components should not be less than 25 years, and the warranty period should not be less than 10 years.

In addition, the "Code" also stipulates that enterprises and projects that do not meet the requirements will not be allowed to enjoy export rebates, domestic application support, and other policies, and they must achieve compliance through mergers and acquisitions, technological transformations, and other methods as soon as possible.

The reporter noted that in fact, as early as last year's "Solar photovoltaic industry" "Twelfth Five-Year Development Plan" (hereinafter referred to as the "plan"), has been involved in "access conditions".

Assistant Wang Guodong, chairman of Wuhan Xinglongyuan Solar Energy Technology Co., Ltd., told the reporter that the "Specification" issued this time was one of the supporting policies of the "Plan". "We must eliminate backward production capacity by raising the threshold, and stop the project blindly. , Support a large number of large-scale backbone enterprises."

Force business transformation or fail or be swallowed

The "Specification" released a clear signal: if it fails to meet the standard, it must pass the merger and reorganization, technological transformation and other means as soon as possible. This means that the survival of the fittest in the photovoltaic industry will intensify.

According to data from the Department of Commerce of Hubei Province, in the past five years, the photovoltaic industry in Hubei Province has been developing rapidly and its production capacity ranks third in the country. At present, there are 13 large-scale photovoltaic companies in Hubei Province, mainly located in Wuhan, Yichang, Huangshi, Enshi and other places.

Wuhan Xinglongyuan Solar Energy Technology Co., Ltd., Yichang Jiuzhou Fangyuan New Energy Co., Ltd., and other officials said that with the implementation of the "Code", the integration tide of the photovoltaic manufacturing industry will start gradually before the end of this year, in the process, the technology is not good and Enterprises with heavy debt burdens may be subject to bankruptcy restructuring.

In fact, as early as last year after the EU launched the "double reverse" investigation, including our province, a large number of domestic small photovoltaic companies have closed down. The issuance of the "Code" will further eliminate backward production capacity and integrate and support a group of large-scale leading companies. At present, the province's Xinglongyuan, Nisshin Technology, and Kyushu Fangyuan have successfully transformed themselves and increased their investment in technology research and development while expanding sales in the domestic market.

However, some company officials also stated that after the implementation of the “Code,” large-scale central enterprises such as Datang Energy and Zhongjie Energy will have a more advantageous position and will likely become the leader in integration and restructuring.

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