The domestic photovoltaic industry is dominated by European and American markets

China's solar photovoltaic industry provides a lot of output, but the domestic demand is low, resulting in the market has been subject to control by Germany and Italy and other European and American markets. Even if the government allocates subsidies, the industry is not optimistic. The private solar photovoltaic companies hope to be profitable. However, under the circumstances that the government has not introduced the on-grid tariffs, the three provinces have become independent and put pressure on government authorities.

At present, the global solar photovoltaic market demand depends on the demand status of Germany and Italy. In 2010, 17 billion pounds (17GWp) installed capacity in the world, the two countries have a total market share of 70%. In 2011, the subsidy policy for the solar photovoltaic industry in the two countries has been adjusted. The current global price of solar energy products has led to fierce gains.

Since 2011, polysilicon prices have fallen by more than 20%, selenium tablets have fallen by 30%, and solar cells have also fallen by about 30%. Until the policies of Germany and Italy are confirmed, the market has stabilized again.

China's solar energy industry still stays in a dilemma of not only useless, although China's solar photovoltaic companies account for more than 50% of global supply, demand is less than 5% of the global. In the face of such an embarrassing situation, the market has always hoped that the government will introduce supporting policies.

Since March 2009, the government has decided to allocate RMB 10 billion from the fiscal year as a subsidy to assist in setting up solar roofs and solar buildings, and to promote the formation of a solar PV application market in the mainland.

However, people in the industry think this is a cup of water, not willing to respond positively. At the same time, the implementation of the Golden Sun project proposed by the government is not effective. The first phase of the 2010 project construction project has not reached half of the total planned scale, which seriously affects the second phase of the project.

At present, the domestic solar photovoltaic industry is dominated by private enterprises, and it must be profitable, and the installed capacity can increase. The main reason why people are clamoring for the moment is that competition, subsidy, inadequate income, and lack of enthusiasm among investment entities have seriously affected the ** disease of the revenue.

According to the current total investment cost of ***15-18 yuan/watt, the subsidy limit of the national policy is basically RMB 7-8/watt, and the capital recovery period of the solar energy industry is about 10-15 years. As far as the rate of return is concerned, investing in the solar photovoltaic industry has a certain degree of economy, but it is difficult to excel in the short term.

However, as far as the global market is concerned, the profit model of the solar energy industry mainly depends on the government's setting of the on-grid tariff. Cheap Internet access is a promising future, but the chances of achieving it during the 12th Five-Year Plan period are relatively low. Mainland companies must rely on government subsidies to survive.

The mainland government has not yet introduced a fixed on-grid tariff standard, so each province is going its own way. Jiangsu proposed a 1.4 yuan / kWh electricity tariff plan, Qinghai is advertised as *** 1.15 yuan / kWh, and Shandong does not fall behind, recently announced that the region put into operation in 2011 the electricity price is 1.4 yuan /*** Kilowatt-hour, 2012 is 1.2 yuan/kWh.

The three provinces launched their own on-grid tariff schemes at different points in time. This shows the game relationship between local governments and the central government. A senior solar photovoltaic company executives point of view, the province launched their own feed-in tariff, it can be said that pressure on the central government.

If the progress is smooth, the government is likely to launch a national standard on-grid tariff plan in 2012. China's solar photovoltaic industry has great potential, but if it wants to develop rapidly, the government's development of on-grid tariffs is bound to be the most critical step.

In the 12th Five-Year Development Plan for New Energy planned by the National Energy Administration, it is possible to increase the solar installation target during the 12th Five-Year Plan period to 10GWp. By 2020, the solar installation target will be substantially raised to 50GWp, and the average annual installed capacity is set at 25GWp. However, in the immediate situation, 600-1,000 megawatts (MWp) is likely to be the upper limit.