Photovoltaic industry recovery signs market

In the past two years, a large number of overcapacity in the global photovoltaic industry and the unsatisfactory market growth caused by the change in Europe's FIT have caused the prices of photovoltaic products to plummet, and at the same time caused the entire industrial chain to lose money.

However, the Q2 data in 2013 showed for the first time that there was a clear sign of recovery in the solar photovoltaic industry. Although photovoltaic companies are not profitable, as the demand of the three countries in China, the United States and Japan increases, the prices and shipments of photovoltaic modules are increasing.

However, the recovery did not spread to the entire industrial value chain. Those companies that can't adapt to the dynamic developers and manufacturers and the new characteristics of the industry can't get out of the woods.

<br> <br> transfer market according to analysts expected, with Germany, Italy and Spain to cut or end the FIT subsidy, the center of the global PV market has shifted from Europe to Asia. In the first six months of 2013, the demand for PV products in Asia surpassed that of Europe for the first time. This is also the largest regional shift in the PV industry.

The main reason for the recovery of the photovoltaic industry when demand in the Asian market is increasing is that new demand from China, Japan, and the United States has offset the demand from the EU. However, each market is different, and these differences also determine the details of the recovery.

China <br> <br> due to the suspension of trade operations, greatly enhance the Chinese domestic objectives, set a target of 10GW in July this year, and to achieve the target of at least 35GW of installed capacity in 2015.

Although such ambitious goals seem suspect, India has not achieved the national solar goal. China looks very different. Due to the previously established policies, including the Golden Sun Plan and FIT, China's national photovoltaic industry has boomed overnight, especially with the rapid growth of photovoltaic power plants.

It is difficult for people to get accurate data about China. However, many analysts expect China to approach 10GW by 2013, while Moore Capital expects China to approach 8.5GW.

Japan <br> <br> Japanese government released data has been very slow, so Japan Q1 PV demand numbers are hard to determine. However, Japan's PV demand Q1 will reach 1.73 GW.

This growth is driven by FIT, and Japan's FIT is the world's most profitable for developers in the world. This policy has assisted the development of photovoltaic power plants, from a small part of the project to account for the majority of installed capacity, and a large part of them are the vast majority of installed capacity.

However, the fundamental change driven by rapid growth is shifting from satisfying domestic demand to massive exports. One of Japan's Q1 installed 1.73 GW of installed capacity, of which 800 MW were imported.

Almost all large-scale PV manufacturers benefit from this trend. Jinao Solar and Sunpower have strong sales in Japan in Q2 2013, and Tianhe Solar Energy will also indicate that sales will exceed expectations in Q2.

As Japan's PV module prices are higher than those of the United States and China, this allows Japanese companies with market opportunities to obtain higher income and profits.

The U.S. Although the U.S. market is not as big as China and Japan, the rapid expansion of the U.S. market is also critical to the global photovoltaic industry. The United States installed 976 MW in Q2 2013, an increase of 32% year-on-year.

The U.S. market is still dominated by public power plants. FirstSolar is based on its business model of development and construction of photovoltaic power plants, while supplying photovoltaic modules, its market positioning is very strong. Similar downstream vertical production companies include Yingli and Tianhe PV. And these companies also benefit from the expansion of the US market.

Although the tripartite rental market in the U.S. resident sector has had a significant impact, the commercial and residential sectors remain a very small part of the market. Since the United States has never established a FIT or has an effective state FIT policy, it has not experienced rapid growth similar to Japan and the EU market.