On July 26th, China Net Finance reported that a seminar on the review of the development of the photovoltaic industry in the first half of 2024 and the outlook for the second half of the year was held in Wenzhou, Zhejiang on July 25th. Chinese photovoltaic industry entrepreneurs gather together to discuss the current severe situation and response strategies in the photovoltaic industry.
As is well known, China's photovoltaic industry is currently facing severe challenges. The mismatch between supply and demand has led to a significant drop in industry chain prices, polysilicon prices have fallen below the cost line, component bidding prices have continued to decline, and losses for companies in the industry have intensified.
Data shows that in the first half of 2024, the development of the domestic photovoltaic industry can be described as "two extremes". The production of polycrystalline silicon, silicon wafers, cells, and modules increased by over 32% year-on-year, but the prices of polycrystalline silicon and silicon wafers fell by over 40%, and the prices of cells and modules fell by over 15%.
Different companies have expressed different opinions on how long this round of photovoltaic cycle adjustment will last. The official WeChat account of Jinko Solar released the opinion of Chairman Li Xiande:
Due to unforeseen circumstances, I missed the Wenzhou conference, but I can still feel the heaviness of the air thousands of miles away. The flowers are similar year by year, but the difficulties are different from year to year.
Be prepared for the possibility that the current cycle may become normal.
Under structured thinking and expression, everyone has fully summarized the reasons for the current situation in the industry: excessive involvement of local governments and capital, lack of respect for patents, excessive storytelling of ineffective technology, the chicken feathers left by new disruptors, and the fierceness of anti globalization than imagined... However, there seems to be no clear idea on how to prescribe and treat it for the time being. How difficult can this industry be? Instead, I asked myself a few questions:
Redefine overcapacity, no matter how cheap your components are or how efficient your power is, the future production capacity that will not be needed is overcapacity. So what kind of production capacity will be needed in the future? Local manufacturing, green energy manufacturing, supported by local service teams, and one-stop solutions for light storage are the types of production capacity that are needed.
In a contradictory industry that hopes to have technological patent barriers and also hopes that technology can become mainstream, be followed by peers, form a large-scale ecological chain, and thus be more economical, how to make good use of patents as a weapon, not only to form patent deterrence and achieve patent monetization, but also to avoid a patent war that harms both sides? Patent authorization and paid authorization may be the best approach, but we support resolute crackdown on the practice of "using it without prior notice".
In a theater, only two types of people are needed: actors and audiences. The creator is the actor, the user is the audience, and the others are irrelevant. Clear the stage as soon as possible, restore purity to the industry, and give the enterprise autonomy.
Don't exaggerate and exaggerate while urging companies to accelerate the elimination and closure of outdated production capacity. It is recommended that entrepreneurs uninstall WeChat, turn off WiFi, and "don't be shameless, don't worry, don't be afraid, trust yourself". You can win steadily.
Innovation is not just about technology, innovation is about cognition and consciousness. If we must go out, then we should adopt a different posture and approach. Be confident, you already have a lot of chips.