France’s “Echo†reported on the 19th that sales of solar panels fell by 4% in the first half of the year, while global production capacity continued to increase. The result was a more intense price war.
The report said that the plunge in the market price of photovoltaic equipment is swaying the industry. The price fell by more than 20% in half a year. Buyers are happy, but it has caused great difficulties for manufacturers. Although panel makers are blooming all over the world, demand has slowed. According to a study by IHS, this year's new installed solar capacity dropped by 4% to 6.6 gigawatts (GW). Price competition is also linked to Germany and Italy's suspension of subsidies for solar power tariffs, as these two countries are the main global PV market.
According to the report, HIS estimates that the sales growth of panel makers this year should be around 20%, and the revenue of the photovoltaic industry should be able to maintain stability, which is expected to reach about 35 billion US dollars. Major global manufacturers such as Suntech, Yingli, Sharp, and Canada Solar will suffer from operating losses. German battery maker Q-Celle Corp. had a net loss of 365 million euros in the first half of the year. The company plans to reduce its local production capacity by half and move the factory to Asia in order to reduce costs. This week Solon announced that it will shut down its Arizona solar panel plant and that 15% of workers are unemployed. Solar dealers in Phoenix, USA, fell 61% in the first half of the year.
According to research by GTM, the cost of panel production in China is 60% lower than in the United States. However, with the rapid decline in the market price of photovoltaic equipment, Chinese manufacturers have also been hit in the second quarter. Yesterday, after JA Solar lowered its sales forecast for 2011, its share price fell by 11%. At present, China has more than 90 factories that produce panels, but it is still violating competition by accelerating production capacity and reducing costs. The industry believes that the market has experienced price wars in 2009 due to overcapacity, and the current price collapse will lead to the integration of the photovoltaic market in the coming months. However, this price war will continue for several years.
The report said that the plunge in the market price of photovoltaic equipment is swaying the industry. The price fell by more than 20% in half a year. Buyers are happy, but it has caused great difficulties for manufacturers. Although panel makers are blooming all over the world, demand has slowed. According to a study by IHS, this year's new installed solar capacity dropped by 4% to 6.6 gigawatts (GW). Price competition is also linked to Germany and Italy's suspension of subsidies for solar power tariffs, as these two countries are the main global PV market.
According to the report, HIS estimates that the sales growth of panel makers this year should be around 20%, and the revenue of the photovoltaic industry should be able to maintain stability, which is expected to reach about 35 billion US dollars. Major global manufacturers such as Suntech, Yingli, Sharp, and Canada Solar will suffer from operating losses. German battery maker Q-Celle Corp. had a net loss of 365 million euros in the first half of the year. The company plans to reduce its local production capacity by half and move the factory to Asia in order to reduce costs. This week Solon announced that it will shut down its Arizona solar panel plant and that 15% of workers are unemployed. Solar dealers in Phoenix, USA, fell 61% in the first half of the year.
According to research by GTM, the cost of panel production in China is 60% lower than in the United States. However, with the rapid decline in the market price of photovoltaic equipment, Chinese manufacturers have also been hit in the second quarter. Yesterday, after JA Solar lowered its sales forecast for 2011, its share price fell by 11%. At present, China has more than 90 factories that produce panels, but it is still violating competition by accelerating production capacity and reducing costs. The industry believes that the market has experienced price wars in 2009 due to overcapacity, and the current price collapse will lead to the integration of the photovoltaic market in the coming months. However, this price war will continue for several years.
Anping Deming Metal Net Co., Ltd. , http://www.hswiremeshfence.com