Solar Panels

Pv modules prices

Chinese solar companies continue to rely on price war

The impact of the global financial crisis, slowing down the pace of building the solar power industry, although after the first quarter of this year, ushering in better prices and orders the “warming period”, but the reporter from the recently held “Asian Photovoltaic Summit” understand that the matter is upstream or downstream of polysilicon prices the price of solar modules began to experience heavy pressure. The coping strategies of Chinese enterprises is significantly lower prices. New Energy Finance senior analyst Julia at the meeting that China’s current production of polysilicon materials is 20% cheaper than international counterparts, while the PV module prices as low as 2.4 U.S. dollars watts or less, but the disadvantages caused by the price war has begun exposure.

Prices are generally lower than international peers

Julia said that the current international market, the latest spot price of polysilicon kg of 69 U.S. dollars, down 5.5% compared with May. According to New Energy Finance Corporation on a number of suppliers of raw materials survey results, 50% of enterprises believe that polysilicon prices will continue to fall. Low in the international market price fluctuations, the Chinese enterprises played polysilicon feedstock is 20% cheaper than the international low-cost, Julia said the price close to production costs of Chinese enterprises.

In addition, the reporter learned from the summit, this year, several leading global enterprises in the new polysilicon production capacity will be gradually put into operation all. Julia believes that “this will result in additional capacity of about 30,000 tons into the market, so the second half of polysilicon prices downward pressure will continue to increase, while low-cost strategy of Chinese enterprises will thus be challenged, because the decline in its current space is already Small. ”

In the proportion of the profits of the industry chain, polysilicon industry chain of production occupy more than 50% of profits in 2008, the International polysilicon prices have reached 480 U.S. dollars kg peak.

And the polysilicon and the price decline in gross margin line is the solar cell component prices continue to decline, in 2008 the price of solar modules is about 3.5 U.S. dollars watts. With the drop in polysilicon prices, component manufacturers are into the low margin to maintain the state. Among them, the lowest price for SMEs in China, Jiangsu Century vice president Liu Qing said the solar energy business, the current international price for the well-known manufacturers USD 3-3.3 watts, the price of domestic listed companies USD 2.5 watts, while the small and medium enterprises prices only for two U.S. dollars watts.

A major production base in Ningxia, PV module manufacturers in the meeting on the sidelines of the China Securities News, said that at the end of the year 5 the world’s largest solar exhibition and ordering – Germany intersolar exhibition, a total of nearly one hundred of Chinese light V exhibiting companies, but companies can successfully get the orders are not many low-cost competitive strategy has not brought a corresponding increase in orders, and many downstream firms overseas can bring about such a cheap quality assurance and how to maintain business survival expressed doubts .

Financing of basic closed

Shortage experienced in product orders, while the current corporate cash flow and liquidity, the situation is not very optimistic. Julia told reporters at the meeting, from 2006 to 2008 first quarter, the photovoltaic business financing through the capital market is very active, many Chinese solar companies listing overseas financing, but since the economic crisis to the first quarter of 2009, capital financing markets basically shut down.

In the indirect financing market, the European Investment Bank as an example 22, 6% of the banks cut lending new energy, 12% of the banks lending to domestic projects, another 30% of the Bank loans only for short-term borrowings , while no longer involved in solar projects frequently 15-20 years of credit, the proposed increase in bank lending new energy is only 10%. Julia said that this year’s solar energy project finance in Europe in 2007, compared with 20% -40% down.

Liu Qing said the solar energy industry as the largest consumer located in Europe, Chinese enterprises are mainly from overseas orders, so Zaimu Qian dominated for outside the case, short-term industry recovery is difficult. Financing of the closure of the industry increased the difficulty of recovery and expansion of domestic enterprises more difficult. Market research agency iSuppli expects the global solar power system installed this year, the amount of 32% less than last year, substantially to the global solar energy industry in 2011 will recover, then the world’s total installed power generation system is expected to grow 57.8% for three consecutive years.

Following the April 2009 founding of Upsolar America, Inc., China-based Upsolar www.upsolar.com an international supplier of monocrystalline and polycrystalline photovoltaic (PV) modules offering one of the global markets best quality-to-price ratios, announces the opening of its North American headquarters at The Pyramid Center, 600 Montgomery Street, Floor 45, San Francisco, CA. Upsolar has chosen the prominent San Francisco office space for its strategic location and proximity to existing and future partners. The Pyramid Center office will house sales, marketing and technical support, providing a new, accessible point of contact to existing American partners, clients and prospects. Zhe Jiang, CEO of Upsolar, says the companys entrance into the North American PV market marks the expansion of Upsolars global reach and mission to improve its PV module-supply service worldwide. With world headquarters in Shanghai, China, Upsolar now has subsidiary offices in Paris, France, and San Francisco with representative offices in Italy, Germany and Greece. Since Upsolars launch in 2006, the company has grown rapidly, with over 60 MW shipped in 2008 and revenues of 165 million Euros, which the company expects to double by the end of 2009 by delivering 120 MW. Upsolar estimates sustained growth in 2010, increasing production-line capacity to 300 MW, approximately 25% of which it plans to dedicate to the North American market.