A senior Chinese energy official said that the solar panel industry in China is like the "a patient relying on the life support systems for a living," and only after a fierce integration and reduce the capacity to get out of the overcapacity crisis. This assessment highlights the battery plate prices by 30% due to the slowdown in global demand in the past year, and it generates very serious impact of oversupply on the world's largest producer of solar panels. Global solar energy companies are in a price war, many of them lost to Chinese enterprises and closed. And Chinese solar companies are difficult to survive.
Solar Panels Overcapacity
Li Junfeng, deputy director of the Energy Research Institute of China's National Development and Reform Commission, said at least half of the global solar panel production capacity will be "strong competition in the market and the brutal elimination" bankruptcy, especially small power solar panels, for example, the 500 watt solar panels. If you cannot gradually massive out of capacity, the crisis cannot be resolved. That is to say it has to cut capacity in China and abroad. While Chinese solar panel manufacturers to impose anti-dumping duties and countervailing duties in the United States, the European Union is also investigating a similar tariff trade tariffs just like the camel's last straw. The real culprit is the Chinese solar capacity in the rapid expansion of credit-driven, led to the current global production capacity of about 100 gigawatts (GW), and global demand is only 30-50 GW. Due to excess supply, the slowdown in global demand growth, and many large Chinese solar companies have to cut production, struggling to maintain profit margins. And the world's largest solar mod recently received a delisting warning.
Chinese Solar Panel Industry is Bleak.
Li Junfeng is China's most influential renewable energy policy maker. He said that the Chinese central government will not support ailing of Chinese solar energy enterprises, enterprises can only be "responsible for their own problems," The initiatives of the local government rescue solar industry is in the "suicide", because it will only exacerbate the problem of excess production capacity. If other local governments follow the policy of Xinyu and Wuxi, there is no doubt that in solar companies harm is bigger than goodness. It will only accelerate their death. Most solar companies in China is the private sector, local government often holds a minority stake in local businesses. Chinese solar energy industry will need at least 1-2 years to complete the natural integration cycle, but because of the bankruptcy law is not clear enough, in fact it takes longer. This is a slow and painful process. Chinese enterprises to make achievements is not easy, and bankruptcy is more difficult.
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