Photovoltaic companies “kick” gold rush to the US market

Following China's Yingli, Wuxi Suntech, LDK and other industry giants have settled in the United States market, the domestic solar photovoltaic giant Chaoyang Sun also decided to go to the United States to gold. According to the announcement issued by Chaoyue Sun on the 18th, the company plans to invest US$10 million in the United States to establish Chaore Sun’s US subsidiary to engage in solar project investment and development.

The European photovoltaic market has continued to be sluggish recently, and the U.S. market potential has been greatly favored by the industry. Solarbuzz, an authoritative organization, recently issued a report saying that at present, the US non-residential PV preparation project has exceeded 17GW. In this context, the investment of domestic photovoltaic companies has turned to one another and they are looking for opportunities.

Despite its great potential, some people also reminded that there are many uncertainties in investing in the US market and companies need to guard against the risk of market barriers.

Market size soared to 17GW

Solarbuzz’s July July issue of the U.S. Trade Tracking Report released on July 6 shows that at present US non-residential PV preparation projects have exceeded 17 GW, which is 7000 MW higher than the “12th Five-Year Plan” photovoltaic development target currently determined by the Chinese government. Market size Far more than expected.

According to statistics, the 17GW capacity includes a total of 601 projects, and the planning deadline is until 2015.

An analysis report from Great Wall Securities pointed out that at present, there are 40 preparatory projects for photovoltaic power generation in the United States. Among them, California has 62% of the preparatory projects in the United States, and other projects are mainly distributed in Arizona, Nevada, and Ultra-Nippon and New Jersey, as well as the location of Chaozhou, which is the location of the Super Sun Solar Plant.

According to the announcement released by Chaoyue Sun, the company believes that although the US solar market started later than Europe, there are huge business opportunities. From the perspective of the global solar market, the United States will become the third largest solar market in the world, second only to Germany and Italy.

Prior to the Sun, the industry giants including Yingli, Wuxi Suntech and LDK have all gone to the United States to “grab the beach”. In October last year, Suntech Power announced that it invested US$10 million to build a solar cell production plant in Phoenix, USA, and at the same time, the PV module plant in Arizona was put into operation; in January 2011, LDK announced that it would acquire about US$33 million. 70% of U.S. solar power. According to the latest data released by Yingli Green Energy, which first entered the US market in 2004, its US company’s sales of PV cell modules in North America have exceeded 250 MW. The company expects market share in North America to reach 15% in 2011.

Market risks need to be guarded Chao Sun Sun also stated in the above-mentioned announcement that the investment and establishment of factories in the United States may have management risks due to a long distance. The related analysis pointed out that the risks in company management may become one of the constraints of the growth of many companies in the US market. In addition, the risks arising from the local investment environment and market barriers should not be overlooked.

China Investment Advisory Researcher Bai Pengming told the China Securities Journal that at present, the U.S. 301 investigation of Chinese new energy companies is not over yet, although Chinese companies investing in and building factories in the United States can evade this policy risk, and they can also enjoy the U.S. investment. The subsidy policy of the domestic photovoltaic industry, but the preferential treatment enjoyed by Chinese enterprises is far less than that of the native American companies. Although the current trade barriers for Chinese companies to set up factories in the United States may shrink, they are far from being eliminated.

In addition, although the U.S. market has great potential, currently the top 12 project developers in China account for nearly half of the total preparatory projects. Under this background, there is still uncertainty about whether Chinese companies can gain a certain market share as soon as possible. "In the long run, under the leadership of the U.S. trade protection policy, it is not ruled out that the U.S. government will hand over most of its shares and most of its orders to its domestic companies," said Bai Pengming.

Shi Limin, deputy secretary-general of the China Enterprise Confederation New Energy Chamber of Commerce, further pointed out that investing and setting up factories in the United States will increase the company’s huge infrastructure, labor, and management costs. This will test the future cost of Chinese companies entering the international market by price advantage. control ability.

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