Price continues to fall Global photovoltaic market ushered in high integration phase

The solar industry must creatively respond to low-price competition from Asia. Whoever cannot adapt will have to be eliminated.

Chinese PV companies have lowered the prices of solar cells and PV modules by 40%-50%. The decline in sales prices has directly forced German companies into cash liquidity difficulties. Northman Energy (Nosman Energy is the leading photovoltaic power station contractor in China and is considered as a barometer of the domestic photovoltaic market) Li Yang, general manager, said: “In 2008, 33% of the world's PV modules came from China, and by 2011, The proportion has risen to 57%. This fully shows that in the world, China's photovoltaic manufacturing products have a low comparative advantage. This advantage lies in the advantages of open market competition in Europe and the United States." Most German media believe that it is a Chinese PV company. The later's residency led to the bankruptcy of German companies. Last year at the large-scale exhibition of the world photovoltaic industry in Munich, Chinese companies have become the second-largest exhibitors after German companies. Regardless of the size of the booth, the design or the location of the exhibition area, it is comparable to international companies. At the same time, Chinese companies are also spending a lot in marketing. German industry insiders said that “competition pressure is really too great” and the bankruptcy of German companies had been predicted several years ago. Undoubtedly, China's labor force still carries the commercial integration brought about by cheap competition. The origins of German solar companies stem from government policy support and blind expansion of companies. Although the photovoltaic industry currently faces industrial restructuring, overall, it does not affect the pace of development of the industry. According to the predictions of the World Energy Organization, the European Union Research Center and the European Photovoltaic Industry Association, the world's photovoltaic power generation will account for 1% of the total power generation by 2020. Photovoltaic power generation will account for 20% of the global power generation by 2040. Based on this, the number of future generations will be inferred. The annual compound annual growth rate of solar photovoltaic products for the past ten years is as high as 25%-30%. In terms of technology, there is not much difference between China and Germany. However, German universities and research institutes have a profound and continuous research basis for photovoltaic technology. Moreover, some new research shifts in German research institutions will also provide support for the solar industry in the future. In the case where the photovoltaic conversion efficiency of solar cells produced in various countries is basically the same, the more efficient delivery and utilization of solar energy will also be a path for corporate profits. In the short term, according to the 2011-2015 forecast report issued by the European Photovoltaic Industry Association, the global new photovoltaic generation in 2015 will reach 43.9GW.

Li Yang said: "Since the end of last year, the industry has entered a stage of deep reshuffling, and there has been a continuous reduction in the production of small and medium-sized component manufacturers." As the global financial crisis spreads, cost-price wars are drawing to a close, leaving profit margins in the manufacturing industry. Few. With the closure of a batch of small and medium-sized enterprises and the completion of mergers and acquisitions between enterprises, the inter-firm integration caused by falling prices has come to an end.