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In the first half of 2016, China has pushed its PV installed capacity to an unprecedented level, and in the second half of this year, the Chinese market may trigger a global collapse of PV modules
.
IHS Technology expects that this will lead to a sharp drop in prices, which will be a test for many PV companies, which will mean that a new round of reshuffle is about to appear
.
In the first half of 2016, China's installed capacity has approached 13GW, mainly as some developers rush to get projects in place before the feed-in
tariff subsidy falls on June 30, 2016.
In order to achieve balance, photovoltaic installations are expected to fall by 80%
in the third quarter of this year.
The Chinese government aims to keep installed capacity below
20GW this year.
The significant expansion of production capacity in China will exacerbate expectations, and prices will fall
sharply.
Morgan Kuo, Global PV Strategy Marketing Manager at Heraeus, says: "After a frenzy of expansion in the Chinese PV market (15GW of cells; 18GW of modules), China's solar module capacity is expected to reach 76.
5GW by the end of this year, while global PV installed capacity is expected to be between 65GW and 69GW.
”
Not only is demand slowing in China, but the US market is also experiencing a similar correction
.
This is not due to a decrease in installations, but rather to the high stock volume that followed the high shipment volume in 2015
.
In addition, the extension of investment tax breaks until 2016 has also led many developers to extend solar projects until 2017
.
Long-term effects
All these factors will put economically unstable PV module suppliers under a lot of pressure and are likely to lead to industry reshuffle and consolidation
.
But the industry has already noticed that although there may be short-term negative effects, it is unlikely to be too serious or too long-lasting
.
The long-term impact could benefit the PV industry, as prices are likely to get lower and oversupply this year will help drive down solar prices
.
In the first half of 2016, China has pushed its PV installed capacity to an unprecedented level, and in the second half of this year, the Chinese market may trigger a global collapse of PV modules
.
IHS Technology expects that this will lead to a sharp drop in prices, which will be a test for many PV companies, which will mean that a new round of reshuffle is about to appear
.
In the first half of 2016, China's installed capacity has approached 13GW, mainly as some developers rush to get projects in place before the feed-in
tariff subsidy falls on June 30, 2016.
In order to achieve balance, photovoltaic installations are expected to fall by 80%
in the third quarter of this year.
The Chinese government aims to keep installed capacity below
20GW this year.
The significant expansion of production capacity in China will exacerbate expectations, and prices will fall
sharply.
Morgan Kuo, Global PV Strategy Marketing Manager at Heraeus, says: "After a frenzy of expansion in the Chinese PV market (15GW of cells; 18GW of modules), China's solar module capacity is expected to reach 76.
5GW by the end of this year, while global PV installed capacity is expected to be between 65GW and 69GW.
”
Not only is demand slowing in China, but the US market is also experiencing a similar correction
.
This is not due to a decrease in installations, but rather to the high stock volume that followed the high shipment volume in 2015
.
In addition, the extension of investment tax breaks until 2016 has also led many developers to extend solar projects until 2017
.
Long-term effects
All these factors will put economically unstable PV module suppliers under a lot of pressure and are likely to lead to industry reshuffle and consolidation
.
But the industry has already noticed that although there may be short-term negative effects, it is unlikely to be too serious or too long-lasting
.
The long-term impact could benefit the PV industry, as prices are likely to get lower and oversupply this year will help drive down solar prices
.
In the first half of 2016, China's installed capacity has approached 13GW, mainly as some developers rush to get projects in place before the feed-in
tariff subsidy falls on June 30, 2016.
In order to achieve balance, photovoltaic installations are expected to fall by 80%
in the third quarter of this year.
The Chinese government aims to keep installed capacity below
20GW this year.
The significant expansion of production capacity in China will exacerbate expectations, and prices will fall
sharply.
Morgan Kuo, Global PV Strategy Marketing Manager at Heraeus, says: "After a frenzy of expansion in the Chinese PV market (15GW of cells; 18GW of modules), China's solar module capacity is expected to reach 76.
5GW by the end of this year, while global PV installed capacity is expected to be between 65GW and 69GW.
”
Not only is demand slowing in China, but the US market is also experiencing a similar correction
.
This is not due to a decrease in installations, but rather to the high stock volume that followed the high shipment volume in 2015
.
In addition, the extension of investment tax breaks until 2016 has also led many developers to extend solar projects until 2017
.
Long-term effects
Long-term effectsAll these factors will put economically unstable PV module suppliers under a lot of pressure and are likely to lead to industry reshuffle and consolidation
.
But the industry has already noticed that although there may be short-term negative effects, it is unlikely to be too serious or too long-lasting
.
The long-term impact could benefit the PV industry, as prices are likely to get lower and oversupply this year will help drive down solar prices
.
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only.
If you find a work on the website that infringes your intellectual property rights, please contact us and we will promptly modify or delete
it.
Disclaimer: Some of the public information collected by this website comes from the Internet, and the purpose of reprinting is to convey more information and for network sharing, which does not mean that this site agrees with its views and is responsible for its authenticity, nor does it constitute any other suggestions, and the content of the article is for reference
only.
If you find a work on the website that infringes your intellectual property rights, please contact us and we will promptly modify or delete
it.
only.
If you find a work on the website that infringes your intellectual property rights, please contact us and we will promptly modify or delete
it.
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Responsible editor: Jiang Dan
Responsible editor: Jiang Dan
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