PV crisis: foreign market subsidies fall to profit decline
December 21 07:07:06, 2022
"At present, the photovoltaic industry has entered a new round of difficult period, which is another crisis after the 2008 financial turmoil." A photovoltaic company CEO said at an internal group meeting held recently. Since March, the prices of silicon materials, silicon wafers, batteries and components in the photovoltaic industry have continued to fall. What followed was the decline in profits of photovoltaic companies. The industry believes that with the further opening of domestic and foreign markets, competition will intensify, the photovoltaic industry will gradually mature. The decline in profits Although the orders were held, the profits of the companies slipped quietly. Statistics show that the price of solar cells in 2008 was $4.1/W, and in the following years it fell to $2.8/W and $1.99/W. The price of PV modules has a declining trend, and the magnitude is not low. A person from a photovoltaic company in Jiangsu bluntly said that the price of photovoltaic modules in the domestic and overseas markets has continued to decline recently, and the decline in corporate profits is very serious, less than 5%. A senior executive of Zhejiang Solar Energy Co., Ltd. told reporters that since 2011, the profits of the photovoltaic industry have been declining, and the price of battery components has dropped by 10% compared with the same period of last year. Duan Tonggang, spokesman of Hebei Jinglong Group, said in an interview with this reporter: "In the first 4 months, the Group's profit in photovoltaics was only 8%. The market is declining and the price of products is falling all the way, which is basically the same as during the financial crisis. It’s a critical moment in the industry.†“The profit has actually declined recently,†said Liu Zhibo, assistant to the president of Wuxi Suntech Group. However, he is still full of confidence in this emerging industry. "Photovoltaic as an emerging industry, the profit is floating is normal, especially now the global utilization of photovoltaic energy is still very low, but the development of photovoltaic is the trend of the times, the business In the future, we remain optimistic.†In February of this year, DHH EnningWicht, chief industry analyst of IH SiSuppli, a well-known photovoltaic industry research and consulting organization, said in Shanghai that the average price of polysilicon modules is currently declining. The average price of components in the first half of 2011 is expected to be about Decrease by 9%. In the eyes of many companies, the PV industry is in a low profit margin and has direct links with many new entrants. Too many new companies have led to increased competition, while market demand has decreased, and the profits of the photovoltaic industry have been squeezed to some extent. Xia Zhisheng, president of the Zhejiang Solar Energy Industry Association, pointed out that photovoltaic enterprises in Zhejiang are increasing, more and more enterprises are entering the photovoltaic industry, and blind development will make production capacity saturated. It is understood that the gross profit margin of photovoltaic industry components can often reach 15% -35%. Even if some technologies are not well-off, the gross profit margin can still reach 8%-10%, which is about 5% of the gross profit margin. The business is very attractive. Wang Yuehai, executive secretary of the National Federation of Industry and Commerce New Energy Chamber of Commerce, said in an interview with this reporter that as the scale of the industry expands, the decline in the price of photovoltaic modules is inevitable, but from another perspective, it is also good news. The decline in the price of photovoltaic modules will drive down the price of photovoltaic on-grid electricity, which will greatly benefit the better development of the photovoltaic industry. At present, the cost of optoelectronics is about 1.5 yuan / kWh. If it is reduced to 1 yuan / kWh, it will have more industrial potential. Market is out In 2010, China's photovoltaic cell production reached 8,000 megawatts, accounting for more than half of the world's total output, and more than 95% of its products are exported. Gradually entering the stage of overheating investment, a large amount of production capacity can not be released, resulting in a decline in profits. China's photovoltaic industry is still subject to the human stage, the market and raw materials are outside, and the technology must also rely on introduction. In 2010, the price of components was stimulated by the overseas economy, and the price exceeded US$1.4/W. However, since then, the price of components has dropped all the way to the nearest US$1.2/W, while the cell and upstream polysilicon have been affected. The price of polysilicon has exceeded 100. USD/kg fell to the current $70/kg. The market for Chinese PV products is still mainly abroad. Europe is currently the world's most important PV market, with Germany and Italy accounting for 40% and 20% of the global market respectively. However, as an already developed industry, many countries have begun to cut subsidies for photovoltaic power generation, which is undoubtedly a heavy blow to China's investment in the photovoltaic industry. Recently, Germany has determined a flexible pricing policy every quarter to control the market that is growing too fast; Italy also introduced a large-scale reduction of PV subsidy policy a few days ago, and is more inclined to subsidize large-scale PV power plant projects. In fact, European countries such as France and Spain have also lowered their subsidies. Compared with the subsidies implemented in September 2010, France has adopted a reduction rate of 57% for systems installed in the development area, while small photovoltaic systems The subsidy for on-grid tariffs enjoyed was also reduced by 20% at one time. In addition, France will implement a 10% reduction policy every quarter during the year. A person from a photovoltaic company in Zhejiang told reporters that with the implementation of the European subsidy policy, the price of PV modules is changing every month, and the overall trend is the downward trend in profits. Duan Tonggang said that due to the weakening of the terminal market demand, almost all the links in the PV industry chain have become unprofitable. Even polysilicon has shown signs of inventory backlog, and the possibility of price reduction of raw materials in the future is very high. Wang Yuehai told reporters that the development of emerging industries cannot be smooth sailing, and industrial integration is likely to occur at any time. This is a fluctuation in the process of industrial development. The policy subsidies are generally from high to low. At present, it is normal for countries to subsidize the photovoltaic industry. The price of electricity is not fixed. Opening the domestic market as soon as possible is a long-awaited event for all companies. Li Junfeng, deputy director of the Energy Research Institute of the National Development and Reform Commission, said that by 2015, the domestic PV installed capacity target will reach 10 GW (10 million kilowatts), and by 2020, the target should be at least 50 GW (50 million kilowatts). Li Junfeng said that in the future, global PV power generation capacity will be 1 billion kilowatts. Including the US, China and India markets, it will be much larger than the current installed capacity of the world's largest photovoltaic market - Germany. It is expected that in the next three to five years, the Chinese PV market will certainly be much larger than the European market. However, as of the end of last year, the total installed capacity of domestic PV grid-connected power generation was only around 600 MW. At present, the country lacks a clear pricing mechanism for solar photovoltaic power generation, and it has increasingly become a major bottleneck for domestic solar energy development. Unlike Japan, Germany and other developed countries, China's solar photovoltaic power generation is always a price, one thing. It is understood that Shanghai Chongming Island, Inner Mongolia Erdos (21.08, -0.33, -1.54%), which is approved by the National Development and Reform Commission, each has a solar grid price of 4 yuan per kWh, which is about 6 yuan per kWh of ordinary civilian electricity price. More than one. In 2010, 20 MW of solar power was built in Xuzhou, Jiangsu Province. The on-grid price in the province was 2.15 yuan/kWh. Duan Tonggang believes that China should increase the utilization rate of photovoltaic power, open up the domestic market, and realize the joint development of domestic and foreign markets. It is hoped that the state will be able to formulate perfect industry access rules and PV on-grid tariff standards as soon as possible. "The introduction of relevant product standards is not timely enough, which will result in unguaranteed product quality and hinder the development of the industry. At present, we should establish China's independent standards as soon as possible, lead the industry development with standards, and ensure the world competitiveness of Chinese products. In the future world new energy industry competition pattern Can have a higher starting point." Wang Yuehai frankly. Wang Yuehai believes that capital chasing interests is understandable. As a promising sunrise industry, the new energy industry will inevitably face the problem of overheated investment. There is no need to worry too much. As competition intensifies, the market will gradually mature. He suggested that PV companies should start from their own, increase investment in technological innovation, master core technologies and key equipment as soon as possible, improve the overall quality of enterprises, and achieve greater and stronger. Shi Dinghua, chairman of the China Renewable Energy Society, also said that the cost of photovoltaic power generation in China has been declining in recent years, but it is still not widely used. The main reason is that the on-grid tariff has not been implemented. In order to reduce losses, companies have actively responded to a new round of industry crisis. Duan Tonggang told reporters that Jinglong Group has held a mobilization meeting to reduce costs, strengthen management innovation and open up the market, and prepare for the new crisis. Â
A square nut is a four-sided nut. Compared to standard hex nuts, square nuts have a greater surface in contact with the part being fastened, and therefore provide greater resistance to loosening (though also greater resistance to tightening. They are also much less likely to become rounded-off after repeated loosening/tightening cycles. Square nuts are typically mated with square-headed bolts. Square nuts are used along with flat washers to avoid damage from its sharp edges and increase the strength of the fastener. Square nuts can have standard, fine or coarse threading with platings of zinc yellow, plain, zinc clear, tin and cadmium, among others. Most can meet either the ASTM A194, ASTM A563, or ASTM F594 standard.
Square Nut,Square Weld Nut,Square Head Nut,Stainless Steel Square Nuts