Photovoltaic companies are hard to turn a profit on their own

Photovoltaic companies are hard to turn a profit on their own According to the China Renewable Energy Society, after the PV power generation subsidy standards have been discussed by many parties, the upper limit may be set at around 0.45-0.5 yuan/degree, which is lower than the previous market expectation of 0.6 yuan/degree. It goes without saying that this will have a negative impact on the photovoltaic market that is recovering. As of January 18, of the 16 listed companies that are mainly photovoltaics and have already announced 2012 results, there are 8 pre-inventories, 1 indeterminate, and 7 losses. Among them, the downstream component producer sunflower is expected to lose 200-300 million yuan, and Oriental Sunrise is expected to have a loss of 180-260 million yuan.

The difficulties faced by the photovoltaic industry are far beyond the expectations of the industry. It is very difficult for photovoltaic companies to achieve profitability by their own efforts. The government and related parties should actively work together to help the photovoltaic industry out of its predicament.

Since the price of solar modules, polysilicon, and other products drastically dipped in 2012, there have been many large-scale plant closures in Europe and the United States. China is no exception, and a large number of solar manufacturers are on the verge of collapse. The horn of merger and reorganization has already sounded. In 2013, the photovoltaic industry will enter a deep industrial adjustment period.

It goes without saying that the photovoltaic industry is an important part of the new energy industry and is also a strategic emerging industry that the country has identified. Its development is not only affected by the macro-environment of photovoltaic companies, photovoltaic industry, and national economy, but also by the central government, local governments, and other aspects of policy measures. The measures for the photovoltaic industry to overcome difficulties must be multi-participated to be effective.

The relevant state departments should formulate clear, clear, reasonable and enforceable industrial plans and industry regulations. This is an important responsibility and an obligation that must be fulfilled, and these tasks should be put in place at the initial stage of the industry. The author believes that the development goals of the photovoltaic industry formulated in the “Twelfth Five-Year Plan” are inconsistent, lacking enough theoretical and practical foundations to support the ever-changing PV market. Relevant state departments should adjust their planning goals as soon as possible and formulate explanatory rules and regulations. This will be an important event for the entire industry.

Local governments should use the national macroeconomic policies as a basis to formulate local economic development strategies and plans. In particular, local government economic restructuring should be carried out by local governments.

Facts have proved that the practice of a large number of local governments in a few years ago to launch photovoltaic projects and photovoltaic industrial parks was wrong. This not only failed to enlarge and strengthen the photovoltaic industry, but also made it a burden on the optimization of local economic structure and local government finances and taxes. At present, the structural adjustment of the photovoltaic industry is increasing. Local governments should actively and strictly review the photovoltaic projects. Enterprises that have no core profit advantages, such as no profit and technology, should be “discussed” as soon as possible, and must no longer pray for palliative measures.

At the same time, grid-connected companies' grid-connected policies are the main factors that restrict the profitability of photovoltaic power plants. The utilization efficiency of photovoltaic power generation is of great significance to photovoltaic companies. However, because photovoltaic power generation currently does not have any advantages in terms of costs and electricity prices, grid companies have always been lacking in interest and enthusiasm for implementing grid-connected policies for distributed photovoltaic power plants. Despite repeated urging by relevant state agencies, the effectiveness has not always been satisfactory. Although the power grid companies have promised to increase their attention to the integration of photovoltaic power stations, the final implementation status is not flattering.

The grid company should do a deep reflection and must not ignore the national energy policy in order to pursue its own interests.

In addition, from the perspective of photovoltaic companies themselves, structural adjustments and elimination of outdated excess capacity are the key issues faced by the photovoltaic industry. Photovoltaic companies are the ultimate executors of policies, and their implementation and willingness to implement will largely influence the effectiveness of the structural adjustment of the photovoltaic industry. The limited production cuts are the top priority for domestic photovoltaic companies. Blindly expanding production capacity and launching photovoltaic projects have not met the requirements of market development. Individual "half dead" companies should take the initiative to withdraw from the market earlier, self-elimination, decisive exit, active exit, and take the initiative to withdraw may be able to avoid more unnecessary losses. The author suggests that these small and medium photovoltaic companies that are already on the verge of bankruptcy must think twice.

In a word, the photovoltaic industry and photovoltaic companies have a long road to recovery from difficulties. It is difficult for a certain group, a certain department, or a certain policy to resolve the difficulties of the industry. All related interest groups should cooperate and actively negotiate. The implementation of relevant policies, regulations and measures is the key.

At present, there is no lack of policies in the photovoltaic industry in China, and there is no shortage of targets. What is lacking are policies that can be implemented and policies that can be implemented well. In this sense, the relevant supervision should assume more responsibilities. The supervision should not be investigated, the investigation should be ignored, the regulation should be strict, and the supervision should not be carried out quickly. The supervision system is inexplicably established. How can the photovoltaic industry fail to present the devastating phenomenon?

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