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Home> News>Industry Information>PV Companies Need Self-help — PV Mounting Systems Made In China

PV Companies Need Self-help — PV Mounting Systems Made In China

From:Serve (Xiamen) New Energy Co., Ltd.     Release time:2019-02-25

Overview:Whether it is the "New 6 Articles" of the Executive Meeting of the State Council, or the relevant local governments actively coordinate the banks to "turn on the green light" for photovoltaic enterprises, reduce or delay photovoltaic loans, in the short term, see the new frequency of photovoltaic industry in China. But is China's photovoltaic industry totally saved? It's too early to draw a conclusion.

Whether it is the "New 6 Articles" of the Executive Meeting of the State Council, or the relevant local governments actively coordinate the banks to "turn on the green light" for photovoltaic enterprises, reduce or delay photovoltaic loans, in the short term, see the new frequency of photovoltaic industry in China. But is China's photovoltaic industry totally saved? It's too early to draw a conclusion.


Since 2001, China's photovoltaic industry has just started, 18 years ago, thanks to the emergence of German photovoltaic subsidy policy, the global trillion yuan market has also been opened, beneficiaries are countless. In the meantime, the domestic photovoltaic industry has undergone tremendous changes: the number of photovoltaic companies has expanded from single digits to thousands; the overall capacity of the industry has also increased from several watts to more than 30 GW; some small companies have been unknown, and after several years, they have created tens of billions of dollars in revenue and profits.


Undoubtedly, China's photovoltaic enterprises are also proud of the world with their low labor, large-scale production and high quality and low price dazzling components. But among them, Chinese companies pay a lot of money.


In this global financial turmoil, we can see that a large number of enterprises have been shut down or even bankrupt, some companies have to "restructure" because of insolvency, and some companies have complex related party transactions and out-of-control internal management.


Some people attribute this phenomenon to the fierce competition in the market. Indeed, in an industry that has only been in its infancy for more than 10 years, Chinese companies may be willing to fall short in the face of sudden global market competition that they have to take part in at the outset; it is also true that Chinese companies have fought too hard against each other overseas, with component prices constantly lowering, resulting in anti-dumping tax penalties of up to 47%.

Wholesale Adjustable Aluminum Pv Mounting System From China

However, the author believes that one of the fundamental reasons for the failure of some photovoltaic enterprises is the greed of investors and management themselves, and the excessive judgment of the market. This industry gives people a lot of opportunities, but once you can't control it, it will sink deeper and deeper.


From 2004 to 2006, when the photovoltaic industry was most busy, shoe sellers, chemical manufacturers, electronics developers and real estate developers rushed in. The high price of polycrystalline silicon made them crazy. The huge market demand also made people passionate. However, the price of photovoltaic products went down sharply and many people lost their lives.


In 2009, after the outbreak of the financial crisis, the photovoltaic market fell into a dilemma, but when the industry resumed fighting in 2010, demand increased substantially and product prices rebounded again, some people were thrilled: a large number of production lines were increased, more airborne executives were hired, and enterprises again borrowed heavily from banks. However, after 2011, the photovoltaic industry has fallen into crisis again, and such investors who are bold enough to take the plunge have been at a loss.


In successive rounds of baptism, domestic enterprises have forgotten that the industry still has the corresponding technical threshold, forgotten that the door of the European market is likely to be closed at any time, they can not achieve safety and security.


As a result, enterprises lose their hematopoietic capacity, even if they continue to introduce various policies, even if they live for a few more days, they may eventually find it difficult to achieve real redemption. The core method is self-help.


About Serve Energy

Serve (Xiamen) New Energy Co., Ltd. is a Chinese manufacturer of low ballasted aluminum PV mounting system with independent intellectual property rights. Serve Energy specializes in the research and development, production, sales and services of solar products, such as wholesale adjustable aluminum PV mounting system from China, wholesale aluminum ground PV mounting system from China, aluminum flat roof PV mounting system made in China, PV mounting systems made in China.


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