Solar PV Industry Investment Proposal

Regarding investment in the photovoltaic industry, Cheng Longxian, an analyst at Shangpu Consulting, believes that as the world’s fastest-growing economy, China’s technology and applications in the field of photovoltaic power generation are only at a low level in the world.

During the 12th Five-Year Plan period in China, China will build 100 new energy demonstration cities, and further build grid-connected photovoltaic power stations to develop microgrid demonstration areas in regions with rich solar energy resources such as the Midwest of China, through various means. Promote the application of photovoltaic power generation in China.

Champ Consulting's investment advice for the photovoltaic industry has three points:

1. The price of solar cell raw materials remains high, and the supply of equipment is in short supply. Some of the biggest complaints from domestic solar cell manufacturers to equipment companies are that they cannot deliver on schedule, which affects their expansion schedule. The main reason is that the market is growing too fast. Many domestic equipment companies have been small-scale operations in the past and cannot withstand rapid growth. With the advent of the financial crisis, there has been a great impact on domestic photovoltaic companies. Once the balance of production and sales in overseas markets, China's photovoltaic industry will face difficulties, the domestic excess photovoltaic industry will reshuffle, so the new project must be careful.

2. The future development of China's photovoltaic industry should strengthen cooperation. Enterprises should strive to reduce manufacturing costs through technological upgrading and scale expansion, but the government should also provide policy support.

3. From the perspective of the development status of the global photovoltaic industry, 90% of the photovoltaic industry is a policy market. At present, the photovoltaic industry is not entirely a market economy. It is also mainly a government action. Once overseas markets are balanced in production and sales, any country will not take it. To subsidize foreign companies, the Chinese PV industry must develop its own market after 2010.