The overcapacity of the photovoltaic industry is in urgent need of a new development model

1.15 yuan per kWh, the national unified photovoltaic power grid price just released, that is, caused a lot of shocks in the photovoltaic industry. Because this price is still far from the production cost of Zhejiang PV companies, it has put pressure on these PV companies that are facing market downturn. At the "Photovoltaic Industry Development Trend Seminar" hosted by Hangzhou Economic and Information Committee on August 3, more than 100 PV companies including Qihui Solar Energy Co., Ltd. and Zhejiang Zhengtai Solar Technology Co., Ltd. tried to solve the problem. . The decline in the price of polysilicon and the downturn in the export market have all made domestic PV companies feel the “cold wave” from the industry. According to reports, there are nearly 200 PV companies in Zhejiang, and the capacity in the past seven months has exceeded 230% of the total output last year. Small-scale, lack of core technology, the bulk of capital investment, making today's photovoltaic industry look more "crowded", but there are still many new companies. In the view of Li Junfeng, deputy director of the Energy Research Institute of the National Development and Reform Commission, photovoltaic companies have already had overcapacity. This is not a unique problem in Zhejiang, and it is already a common dilemma for China's PV industry. According to his prediction, China's current PV production capacity is around 20 million kilowatts, which is enough for the market demand in 2020. Under the pressure of energy-saving and emission reduction targets, there is another real concern about the photovoltaic industry, which is highly dependent on electricity consumption. This kind of worry has made Li Xianshou, the CEO of Suihui Sunshine, who has just won the bid for Qinghai Golmud Solar Power Project, happy. It is understood that the project in Qinghai is a total of more than 900 megawatts, and is known as the “photovoltaic feast”. Qi Hui won the bid of 20 MW, and another Zhejiang private enterprise, Chint, also won the bid of 20 MW, and the winning bid price was 1.15 yuan per kWh. Li Xianshou revealed that the return on investment for this price is around 7.5%. The meager rate of return plus the winning bid is accompanied by other additional investment conditions, making this successful bid demonstration more meaningful than the profit target. In fact, compared with other PV companies in Zhejiang, Qihui Sunshine has a much lower production cost than other companies because of its long industrial chain and large investment scale. As the leading company in the province's photovoltaic industry, the situation of Sui Hui Sunshine represents the common situation of most PV companies. Since the beginning of this year, the highest level of polysilicon per ton of 750,000 yuan has fallen, and the current price is only 400,000 to 470,000 yuan per ton. This decline has almost swallowed most of the company's profits. Last year, she also achieved a net profit of over 1 billion yuan. This year's situation does not seem optimistic. Seeing the dilemma of this industry reality, Xia Zhisheng, the chairman of Zhejiang Midea Solar Industry Co., Ltd., who was hesitant to enter the photovoltaic industry, has not been active. "Only through the alliance, bringing together, gathering and developing, and enhancing the right to speak to the market, is it possible to win the initiative." Xia Zhisheng lamented. Xia Zhisheng's vision coincides with Li Xianshou. "Technology innovation is important, but it has become a normal state. But the innovation of business model is also a way out." However, it is only the collective westward move that can't talk about "business model innovation." Li Xianshou’s vision is to bring together a large number of PV companies, use a unified brand, unified agreement bargaining rather than a vicious price, and change competitors into partners. Yan Hui is trying to open up some of the technology and take the first step. Li Junfeng analyzed that the real way out for PV companies is to think about how to reduce the cost through technology innovation, and to make the unified Internet price of 1.15 yuan per kWh profitable, rather than blind capacity expansion.

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