In 2012, the PV industry in Jiangsu declined or reached 30%

In 2012, China's photovoltaic industry was unfavorable, and it had successively encountered investigations from the United States, the European Union, and India.

Jiangsu, as a place of photovoltaic production, has also been hit hard. According to statistics from the Energy Bureau of Jiangsu Province, in the first 10 months of 2012, the total output value of the photovoltaic industry in Jiangsu Province was 180 billion yuan, down 28% year-on-year; The value reached 6.89 billion U.S. dollars, a decrease of 38% year-on-year.

Industry insiders estimate that the PV industry in Jiangsu will decline by 30% in 2012. At present, more than half of the photovoltaic companies in Jiangsu have difficulties in operation, and the debt ratio is generally high. Even among nearly 1,000 photovoltaic manufacturing companies, more than half of the companies are in production stoppages, and the operating rate of enterprises is also seriously insufficient.

Half of the suspended production of photovoltaics in Jiangsu fell from the liabilities of several listed companies. According to public information, the three quarterly reports released by Suntech in 2012 showed that the net loss for the first three quarters was 116.4 million U.S. dollars, and the total liabilities exceeded 3.5 billion U.S. dollars, and the debt ratio was as high as 85%. Hareon Solar's three quarterly report shows that the first three quarters of the loss of 199 million yuan, from January to September, operating income of 3.655 billion yuan, down 31.74%.

The person in charge of the above-mentioned industry association told the reporter of “Daily Economic News” that Jiangsu PV companies currently face difficulties in three aspects, resulting in the suspension of production in nearly half of them. “The first reason is that the prices have dropped sharply, and the prices of PV modules have gone from 2011. The 1.5 US dollars per watt dropped to the current 0.7 US dollar, a drop of more than 50%, which led to a sharp drop in revenue in the case of increased company shipments.The second reason is that some companies have a high debt ratio, several in Jiangsu Province. The total debt of listed companies even exceeds 60 billion yuan, and the average debt ratio exceeds 70%. The third reason is that production has stagnated, and half of the nearly 1,000 companies in Jiangsu are in production stoppages."

In addition to the United States, the European Union have successively imposed double negative factors on China's photovoltaic companies to give Jiangsu photovoltaic industry heavy hits, the industry said that excess capacity is also a factor leading to the current predicament.

Integration is the way out Currently, the photovoltaic industry in Jiangsu province has been depressed, but the favorable policies have also allowed companies to see hope. According to the reporter of "Daily Economic News", on December 19 last year, the State Council executive meeting identified five measures to promote the development of the photovoltaic industry. This has made photovoltaic companies see hope and is considered to be a bailout.

The support of government policies and the position of the State Grid have made many PV companies see hope and make PV companies invest in PV power plants.

It is understood that in May last year, Wuxi Suntech entered into a strategic cooperation agreement with Jiangsu Phono Solar, and both parties will jointly develop domestic photovoltaic power station projects, mainly involving the joint development, construction, and investment of large-scale photovoltaic power stations and rooftop power stations.

In addition, another photovoltaic company in Jiangsu Tianneng Photosynthesis also signed a memorandum of understanding with Yancheng, Jiangsu Province. In the next few years, it will use Yantan’s extensive wasteland resources to seek development and construction of 100-megawatt solar power plants.

"If you want to promote the good development of the photovoltaic industry in Jiangsu Province, you should reorganize and reform, adjust some companies, and eliminate backward companies." A staff member of the Jiangsu Photovoltaic Industry Association told reporters.