By MA Yueran
The photovoltaic industry did not meet expectations this year, with the second half of the year witnessing rapid changes in the supply chain, posing significant challenges to all photovoltaic enterprises, said Chairman of Canadian Solar QU Xiaohua on Monday.
“From now on, photovoltaics are entering the most fiercely competitive era in history, and high per-watt profitability next year should not be expected,” said Qu.
Trina Solar’s Chairman Gao Jifan believes that a decrease in component prices is beneficial for the industry as it can drive expansion, but a rapid decline in component prices is harmful.
“Next year, the capacity expansion of leading enterprises will exceed the market’s average growth rate, and the market share of leading enterprises will certainly rebound, putting pressure on other companies,” Gao noted.
There is a certain level of pessimism in the industry.
“Industry growth next year will likely be around 20 percent to 30 percent and lower than this year,” said JinkoSolar’s Chairman LI Xiande. “Even if component prices drop, there are still good profit opportunities.”
According to data from the National Energy Administration, in the first 10 months of this year, new capacity reached 143 million kilowatts, a year-on-year increase of 145 percent.
Expanding into the international market is one way for photovoltaic enterprises to hedge against domestic competition. Due to trade barriers, many domestic enterprises were forced to invest in overseas factories in the past, and early enterprises went to Southeast Asia. Enterprises may shift to North America or the Middle East.
Chairman of Chint Solar LU Chuan said that when raw material prices return to normal ranges, competition between companies will still revolve around efficiency and the non-silicon cost per watt.
Even if the photovoltaic industry experiences oversupply and price challenges in 2023, demand will be solid.
