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Home> News>Industry Information>PV Industry's Hunger For Money — Ground Pv Mounting Systems Made In China

PV Industry's Hunger For Money — Ground Pv Mounting Systems Made In China

From:Serve (Xiamen) New Energy Co., Ltd.     Release time:2019-02-21

Overview:Why is the photovoltaic industry short of money? The reasons seem to be no less than several aspects: 1. Blind expansion leads to overcapacity. 2. Bank loan collection. 3. Malicious competition causes prices to fall too fast. 4. US-EU anti-dumping; the present and future layout needs funds.

Why is the photovoltaic industry short of money? The reasons seem to be no less than several aspects: 1. Blind expansion leads to overcapacity. 2. Bank loan collection. 3. Malicious competition causes prices to fall too fast. 4. US-EU anti-dumping; the present and future layout needs funds.


Analyst Dr. Jason Tsai said, "The fundamental reason is the slow rate of repayment, and the distrust of the photovoltaic industry in the capital market has led to banks'reluctance to lend." He explained that the upstream environment was due to the impact of bank cash flow. The downstream environment is due to the customer's extended payment time, the speed of repayment can not catch up with the plan. As for the internal reason of the enterprise, it is sales loss, unable to produce operating cash flow, and can only survive by borrowing.


The main financing channel of photovoltaic enterprises is the bank. If the bank does not give it, it will be fatal for these photovoltaic enterprises who are thirsty for money. In the past two years, the industry has been in a downturn and the non-performing loan rate has risen dramatically, which has kept the banking industry away from the light.


One photovoltaic company executive told reporters that the problem of bank loan restriction is very complex. First, the bank itself has no money to expand credit. Second, the photovoltaic profit model is not clear, and few banks dare to lend boldly.

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In June this year, the State Council promulgated six measures to support the photovoltaic industry. The fourth one is to encourage financial institutions to take measures to alleviate the financing difficulties of photovoltaic manufacturing enterprises. So what's the actual situation? What is the bank's attitude towards photovoltaics?


A supplier of auxiliary materials complained to reporters, "I asked customers for money. They all said that they would repay the bank loan. If they did not repay the loan, they would not be able to borrow money. That would be even less than our money."


Another well-known material supplier told reporters, "We do L/C (letter of credit) with customers. If the customer's letter of credit can not be opened, it means that the bank feels risky and not interested." His customers do not include the first-line photovoltaic companies.


Reporters learned that the bank is still more cautious about photovoltaic loans. Because the well-known foreign photovoltaic market has shrunk, the EU has not introduced a "double-negative" and the domestic situation is not clear and other reasons. Specific also depends on the profitability of enterprises.


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 metal roof PV mounting systems from China, wholesale metal roof solar mounting systems from China, BIPV products from China, ground PV mounting systems made in China.


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