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Home> News>Industry Information>Reasons for Overcapacity Of PV — Inexpensive Hdg Solar Roof Mounting System

Reasons for Overcapacity Of PV — Inexpensive Hdg Solar Roof Mounting System

From:Serve (Xiamen) New Energy Co., Ltd.     Release time:2019-02-19

Overview:The photovoltaic industry has experienced several crazies from the most developed and best investment in the initial stage to the current crisis. Domestic market demand is slow, a large number of photovoltaic capacity can not be consumed, for a time, overcapacity has become the biggest original sin. So, what causes the overcapacity of photovoltaic industry?

The photovoltaic industry has experienced several crazies from the most developed and best investment in the initial stage to the current crisis. Domestic market demand is slow, a large number of photovoltaic capacity can not be consumed, for a time, overcapacity has become the biggest original sin. So, what causes the overcapacity of photovoltaic industry?


Viewpoint 1: Profit is too high

According to a senior executive of a Hong Kong-funded enterprise in Hunan, the reason why photovoltaic capacity is so large is that profits were too high in the past. In the crazy years of industry, some links are as high as 50% of profits, which is a pathological phenomenon. Foxconn, the world's largest electronics manufacturer, has only five gross margins.


A researcher of Hebei Hansheng Photovoltaic Technology Co., Ltd. pointed out that in the past few years, photovoltaic profits were too high, which was warmly sought after by enterprises, coupled with too much hot money, and no investment channels, so it seemed that when the profit of the photovoltaic industry was high at that time, it was like seeing a straw to save lives and rushing forward.


With the industry entering the integration period, the domestic photovoltaic components and raw materials industry has bid farewell to the past profitable era. After this adjustment period, I believe that the photovoltaic market will gradually restore its rationality, and enterprises will face the test of hard power such as R&D, management, cost control and so on.

Inexpensive Hdg Solar Roof Mounting System

Viewpoint 2: The threshold is too low

Some insiders pointed out that the photovoltaic industry in all aspects of technology in three or five years will be able to teach. "A production line of silicon wafers, batteries and components, if it's fast, can be put into operation in just a few months."


The above-mentioned Hansheng Photoelectric Personnel in Hebei told reporters that the traditional technology of crystal silicon is mature, and many equipment manufacturers can directly turn key (turnkey project), and they can start with money.


"In addition, in the whole solar photovoltaic industry chain, component manufacturing attracts a large number of manufacturers because of the characteristics of low threshold, low investment and quick effect, which makes the number of small component enterprises numerous." This has also resulted in overcapacity of domestic packaging, uneven product quality, low value-added products, small profits of component enterprises and weak competitiveness.


The low entry threshold leads to the duplicate construction of low-level and low-tech industries. Industry experts pointed out that some links of the photovoltaic industry chain have high technical requirements, few domestic enterprises can step in, and even some links are still blank.


China's photovoltaic industry, like other manufacturing industries, suffers from the lack of core technology. According to a photovoltaic research and development personnel from Shanxi, there is still a big gap between domestic research institutions such as the Chinese Academy of Sciences, the Solar Energy Institute of Shanghai Jiaotong University, the Silicon Materials Laboratory of Zhejiang University and Sun Yat-sen University in the integration of production and research. But their development speed and achievements are worth affirming. In the future, relying on China as the world's largest photovoltaic manufacturing base, this advantage will be able to develop faster.


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 inexpensive HDG solar roof mounting system, wholesale steel solar structure from China, aluminum flat roof PV mounting system made in China, wholesale elevated metal roof PV mounting systems from China.


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