The World's #1 Renewable Energy Network for News, Information, and Companies.
Untitled Document

Bright Spots and Challenges Facing China’s PV Industry in 2014

China’s photovoltaic (PV) market is starting to look more promising. Nevertheless, the industry needs to address certain challenges during the next round of development. Unless the cost of power generation is reduced, the prospects for the market will be not as bright as expected. Looking ahead into the coming year, three positive factors are already apparent:

1. Installed capacity increases: The market is expected to see demand grow to 12 GW in 2014, with that growth supported by the Chinese government. At the same time, however, it should be noted that the development of the country’s PV industry remains quite out of balance, with its dependence on national policy showing no sign of waning. From January to October of this year, China’s PV industry added 3.61 GW of installed capacity, according to data from the National Energy Administration. 

2. Easier grid connection: The process of connecting distributed PV stations to the grid is expected to become more simple this year. Despite the removal of roadblocks in the process, the distributed PV market will not boom immediately. With the generous subsidy of 0.42 yuan (approx. US $0.07) per kilowatt-hour, the large number of players that are planning to enter the market will place a huge burden on the country’s finances. It is expected that the Chinese government will step down the subsidy once each year as the process of connecting to the grid smooths out, as it attempts to regulate the size of the distributed PV market and keep it within a reasonable range.

3. Consolidation expected to bring healthier development: China’s PV overcapacity will drive competition in the industry and serve to phase out facilities depending on outdated technologies, resulting in a consolidated sector monopolized by a handful of players. This monopolistic situation is relative, not absolute, with industry leaders including Jinko Solar, JA Solar, Canadian Solar, Yingli Green Energy and Trina Solar securing most of the orders. 

Meanwhile, challenges remain: 

1. Over-dependence on the domestic market: China’s PV industry has simply shifted its overdependence from the European market to the domestic one and remains overly dependent a single market. This entails a high risk. The government will face increasing fiscal subsidy pressure and, despite the process becoming smoother, problems with grid connection continue to plague the sector.

2. Grid operators reluctant to provide support: PV power generators have not yet solved the issue of energy storage, forcing them to remain reliant on the support from grid operators. However, the country’s recently rolled-out policies strongly favor PV power generators, but ignore the interests of grid operators. With such an obvious imbalance, the current cooperation model is not sustainable and cannot be expected to last much longer.

3. Performance of PV power companies fluctuate seasonally: Since China’s PV makers are dependent on the singular domestic market, whose seasonal demand fluctuations are uniform across the entire sector, results will fluctuate on a seasonal basis as well. This may in turn lead to increased labor costs or excessive outsourced production. Neither is conducive to the healthy development of the industry. 

Lead image: Expose via Shutterstock

Untitled Document

Get All the Renewable Energy World News Delivered to Your Inbox - FREE!

Subscribe to Renewable Energy World Magazine and our award-winning e-Newsletter to stay up to date on current news and industry trends.

 Subscribe Now



Evaluating the Case for Module-Level Shutdown

Hannes Knopf With 2014 NEC adoption in full swing, many are anticipating what the next version of the code will hold for the PV in...

A Case Study in Energy-Transition Momentum

Tim King South Australia is clearly at the forefront of the global energy transition as it establishes a fast-moving model oth...

Listen Up: Can I Get Solar if my Roof is Shaded?

The Energy Show on Renewable Energy World Rooftop solar panels only work when they are in direct sunlight. So if you have a partially shaded roof, the output o...

US Senate Democrats Unveil Energy Bill That Restores PTC and Extends ITC

Brian Eckhouse, Bloomberg Senate Democrats unveiled a bill that would provide more tax credits for renewable energy while killing some tax ince...


Fronius Shifting the Limits in Solar-Plus: It’s not just about products, it’s about solutions.

Fronius USA, who just recently launched the all-new Fronius SnapINverter line this past...

IREC Announces Changes in Regulatory Team

The Interstate Renewable Energy Council (IREC), a not-for-profit organization which for...

IREC Awarded New Funding to Advance Digital Credentials

The Interstate Renewable Energy Council (IREC) proudly announces funding for an innovat...

$100 Discount on 5-day Advanced PV Project Experience Workhop

Upcoming 5-day Workshops: Nov. 7 - 11 Feb. 6 - 10


NY Gov. Cuomo Pledges to Create Carbon Market use Solar, Wind to reduce Climate Change

This week former Vice President Al Gore joined with New York Gov. Andrew Cuomo (D) to sign the Under 2 MOU, a directi...
clean energy

In Clean Energy, The Truth Matters

A group of about 20 protesters gathered outside the Sheraton in Burlington, Vt., early on Oct. 8 as attendees arrived...

Industry Focus: Cleantech: 1366 Technologies joins Solarcity in New York

1366 is set to build a factory just up the road (OK, it is a long road – NYS Thruway) from Solarcity.  The...


Nanjing Shanglong Communications Liu Yuanyuan is Director of Operations and Co-Founder of Nanjing Shanglong Communications. Liu Yuanyuan previously held the position of office manager at the London Financial Times' China translation and editoria...


Volume 18, Issue 4


To register for our free
e-Newsletters, subscribe today:


Tweet the Editors! @jennrunyon



Successfully Integrating Solar: A Proactive Approach

•      What does the increasing solar penetrati...

Solar Power Asset Management and Performance

SEIA and SEPA collaborated with industry leaders to present the first ev...

Solar Power Northeast

  From the team that produced Solar Power Southeast and the sol...


Fast facts: 4 things you need to know about the state of solar fina...

Fast facts: 4 things you need to know about the state of solar financing...

10 Questions You Should Be Asking

Tony Robbins is fond of saying that the quality of your life is directly...

Join us at the New Solar Power Northeast

From the team that produced Solar Power Southeast and the sold out P...


Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now