• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 7 hours Would bashing China solve all the problems of the United States
  • 12 hours COVID 19 May Be Less Deadly Than Flu Study Finds
  • 5 hours Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 1 hour China to Impose Dictatorship on Hong Kong
  • 5 hours Incompetent "Journalists"
  • 12 hours Model 3 cheaper to buy than BMW 3 series.
  • 2 hours Thugs in Trumpistan
  • 14 hours Iran's first oil tanker has arrived near Venezuela
  • 15 hours Let’s Try This....
  • 17 hours Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 20 hours HVDC Cheaper Than Low-carbon Natural Gas
  • 15 hours Pompeo's Hong Kong
  • 6 hours 60 mph electric mopeds
  • 20 hours Oil and Gas After COVID-19

Which Chinese PV Manufacturers will Survive the Post Subsidy Apocalypse?

A huge complex built outside Xinyu city in southeast China, was designed to hold 170 solar power companies, but now only five remain.

The Chinese government poured billions into making the country the world’s leading manufacturer of photovoltaic (PV) solar panels, yet all that is really left are empty offices, locked doors, and vacant buildings.

Through the extensive use of subsidies, and $47.5 billion in credit, China tried to rapidly grow its solar industry into the dominating force in the global market, creating at least one PV panel manufacturing plant in half of the country’s 600 cities.

With massive government support the supply side of the industry quickly outpaced the demand side. Bloomberg write that if China’s factories were able to operate at full capacity, they would produce 49 gigawatts of PV panels a year, 61% more than was installed throughout the world last year.

Related article: Suntech Solar Reels as Directors Quit Over Cash Flow

Solar giants, such as LDK Solar and Suntech Power appeared, dependent on financial aid, and as supply outstripped demand the prices fell, leaving companies crippled with debt, and completely unprofitable.

Even though prices have started to rise again, they are still 60% lower than in November 2010, and many companies have filed for bankruptcy, including Suntech.

Angelo Sino, an analyst at S&P Capital IQ, stated that “there is definitely a slew of smaller zombie companies out there that are going to continue to fall one by one. You’ll see 10 to 12 names here when it all shakes out. The remaining names will either go bankrupt or be consolidated.”

After years of artificial expansion, nourished by government funds, China’s top 10 manufacturers now own $28.8 billion of liabilities, most to government institutions; but having said that China now produces 7 out of every 10 solar panels in the world, and eight of the top ten panel makers are Chinese.

With some difficulty China has managed to climb its way to the top of the global PV manufacturing market, but only now will it be clear if the plan worked and if any if the manufacturers can survive on their own in the post subsidy apocalypse.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News