Chinese Solar Panel Industry is Facing Winter

Global Solar Panel Industry Status

As for the world's largest manufacturer of solar panels founder Shi Zhengrong, the days now is a little bit difficult. Zhengrong Shi was one of the richest people in China, but now, he single-handedly created the Empire is in deep trouble. This also reflects a wider range of China's solar industry is undergoing change - China is the world's largest producer of solar panels. After years of rapid expansion, a large number of the world supply gets lower and lower prices of solar panels, the high leverage solar module manufacturer had cuts and layoffs, and even some companies reduced to a possible bankruptcy.

Chinese Solar Panel Industry Tough Survive

Though solar industry gave birth to some of China's richest entrepreneurs in his heyday, but many of the rich have been falling for release in this month (Forbes) 2012 China Rich List. Timothy Lam, an analyst at Citigroup (Citi) in Hong Kong, said: "This is a survival battle." He estimated, the solar manufacturing industry in mainland China and Taiwan only have 50-80% of capacity in operation, because the companies are trying to loss to a minimum, while the 500 watt solar panels prices continue to fall. Other forecasts are even more terrible. China's top energy policy makers, said Li Junfeng, "the solar panel industry in China is as a living patient relying on the life support system". He predicted that the "crisis" of excess capacity built up from the easy credit of the past five years in the solar industry to recover before the half of the world's solar capacity need to be closed.

Chinese Government Support the Solar Panel Industry

With the global solar panel manufacturers steps into a painful period of integration, analysts said, the prospects for solar panel manufacturing in China and abroad will depend largely on the initiative of the Chinese government. The number of bankruptcy companies during this period is so great. China policy impact of the global solar market will be two ways: first, to promote domestic demand for solar panels, and second, the introduction of supporting policies to help local manufacturers of solar panels from bankruptcy. By increasing the installed capacity of the domestic solar panels, the Chinese government has been trying to absorb part of the excess capacity of the solar panels. Most analysts now predict that China will become the world's second largest solar panel market this year, second only to Germany. By then, China's installed capacity of solar panels will reach 4-5 GW. China in 2015 solar panels installed capacity target to 21 GW compared with the 25 times of the total installed capacity in 2010.

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