China Solar PV Prospects and Commercialization

At present, the output of solar photovoltaic panels and modules in China accounts for half of the world total. It leads the world in the beginning of a new era of alternatives to fossil fuels.

The prospects for the development of China's photovoltaic industry are promising. By 2015, solar photovoltaic power generation in the world’s most countries will be able to compete with traditional energy sources without subsidies. At present, solar photovoltaics have been able to compete with fossil fuels in India, Hawaii, Italy and Spain.

Others who participated in the Energy Summit also agreed with Shi Zhengrong’s views. Suntech Power is the world's largest and most important manufacturer of solar photovoltaic panels. The world's largest wind power company Vestas and another Chinese solar photovoltaic panel manufacturer Trina Solar both stated that their companies can provide solar photovoltaic products that are competitive with fossil fuel prices .

We are at a turning point. Renewable energy sources such as solar photovoltaics and wind energy will no longer be rich people's luxury goods. Now, in real life without subsidies, they are starting to compete with traditional energy sources. Of course, fossil fuels will not disappear, but we can at least expect that we will not have to rely on them in the future.

In the foreseeable future, the world of political supplies or natural disasters that threaten the supply of materials will become a thing of the past. By adopting the right policies, many regions in the world can largely relied on fossil fuels within the next ten years.

However, the speed at which this shift occurs depends not only on the market insights of photovoltaic and new energy technologies and entrepreneurs like Shi Zhengrong, but also on the government's wise and forward-looking policies.

Only a few years ago, the cost of solar photovoltaic panels was twice as much as traditional energy generation such as coal-fired power plants. Significant improvements in solar photovoltaic power generation technology, the slump in polysilicon prices, and the significant increase in the production capacity of solar photovoltaic panels have contributed to the decline in solar PV power generation prices. Bloomberg said that due to the increase in the production of crystalline silicon manufacturers and the decline in demand in the euro area, the price of crystalline silicon solar photovoltaic panels fell by half in the previous year.

Unsurprisingly, China has been at the commanding height in the production of solar photovoltaic panels. At present, the output of solar photovoltaic panels and modules in China accounts for about half of the world's total output. The United States, which produced 40 percent of the world's photovoltaic panels back in 1995, accounted for only 7 percent of global production in 2010.

U.S. solar photovoltaic panel makers have felt unfairly and filed anti-dumping lawsuits against Chinese PV companies at the end of 2011, claiming that China’s various subsidies have allowed Chinese manufacturers to sell solar PV panels to the United States at prices lower than the true production costs. . The US International Trade Commission, which was responsible for resolving the dispute, agreed in December of last year that the lawsuit could continue.

The resulting uncertainty may slow sales of solar photovoltaic products in the US market, but it will not fundamentally change the legend of China's success in winning market share and depressing prices of solar products.

China is not only a solar photovoltaic power generation manufacturer, it is now also one of the largest and most important renewable energy markets. According to NPD Solarbuzz data, the demand in the Chinese market in 2011 increased six-fold from the previous year, which is the main reason for the growth of solar photovoltaic installations in the Asia-Pacific region to reach 165%. China has increased its solar photovoltaic power generation target, and by 2015 solar photovoltaic installation capacity will reach 15GW.

At the same time, there will be more capital investment in technological improvements. China and the United States have the world’s leading clean technology spending. 'Every country in the world, especially China, has realized that the economic potential of the solar PV market is moving at full speed. In a recent speech, US Energy Secretary Steven Chu warned: 'The United States needs to make a choice: We are importers or exporters of solar technology. We can accept failure or we can also compete and win. '

Last year, the value of renewable energy transactions rose by 40% to $53.5 billion.

In short, renewable energy power generation such as solar photovoltaic power generation and wind power generation is maturing. It may be difficult to realize profitability in the future, and the trade war may also increase. However, the overall prospects of solar photovoltaics as a power source are clear. The increase in the efficiency of photovoltaic power generation and the drop in power generation prices will benefit many consumers.

Phased-out of fossil fuels will be a long journey. However, the renewable energy road has also become more definite and safe every year. China and the United States are strong rivals in this field and they can also be winners at the same time. As trade disputes intensify, we need to bear in mind that, along with the decline in renewable energy prices, there will be far more winners than losers.