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Photovoltaic New Deal Irreversible New Cycle Companies Need To Build Core Competencies

The annual SNEC event has just come to an end. PV companies are looking forward to the second half of the year with an unanticipated way. On May 31, 2018, the three ministries and commissions of the National Development and Reform Commission, the Ministry of Finance, and the Energy Administration jointly issued “About 2018 The notice of matters related to photovoltaic power generation is summarized as follows:


In 2018, no ordinary power plants requiring state subsidies will be arranged. In 2018, distributed photovoltaic development plans will have a scale of 10 million kilowatts. The newly-introduced photovoltaic power plant's on-grid tariff was uniformly reduced by 0.05 yuan; for the distributed project of “spontaneous self-use and surplus power access”, the subsidy standard was reduced by 0.05 yuan to 0.32 yuan (including tax) per kilowatt-hour.


In general, photovoltaic power generation needs to control the amount and reduce subsidies. The New Deal was not surprised to set off an uproar in the photovoltaic industry. First, there were industry experts who questioned the text at the first time. On June 2, Wang Sicheng, deputy director of the Photovoltaic Committee of the China Renewable Energy Society, sent a letter to the Photovoltaic Committee, stating that “photovoltaic 531 adjustment of the New Deal” will cause the photovoltaic manufacturing industry to collapse, with losses exceeding RMB 1 trillion, and 2.5 million employment will be affected.


OFweek Industrial Research Institute believes that although all parties in the photovoltaic industry are actively responding to the possibility of looking for a policy buffer, but from the introduction of the "531 New Deal," the time and method of view, the regulatory level of the photovoltaic industry "slam brake" The method of handling is not a "seeking opinion" style, but a final word. Some details (such as distributed photovoltaic 10GW indicators, the proportion of specific types of installations) can then seek the introduction of detailed documents, but from a big direction, the implementation and implementation of this new photovoltaic power policy is irreversible.


Looking at the development of China's photovoltaic industry, from the initial two ends, it is difficult to survive in the cracks, gradually opened up to the domestic market, the introduction of benchmarking prices to gradually improve, China's photovoltaic industry, whether it is manufacturing or application, are in Occupy the industry's leading position in a short period of time. It is undeniable that many PV companies, especially private enterprises, have made outstanding contributions. Therefore, when regulators treat this industry in such a way, companies have reasons to feel frustrated. At this time node, photovoltaic companies can rely on arguments to defend their own legitimate rights and interests.


On the other hand, the ultimate direction of the photovoltaic industry is to compete directly with traditional energy sources. The experience of developed countries such as Germany, the United States, and Japan is no exception. With China's photovoltaic industry is currently "hot" market conditions, regulatory authorities in advance shattered cold water is also not a bad thing.


All in all, we believe that no matter which part of the company, from a strategic perspective, in the new cycle of the “subsidy-free” era, companies should start from their own circumstances and build core competitiveness. In the past, any type of enterprise could cross the border and deploy a large scale in downstream applications. The era of relying on subsidies to maintain high profits will never return.


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