Current situation of photovoltaic industry

After years of development, China's photovoltaic industry has formed a relatively perfect industrial system. At present, the manufacturing capacity and market share of China's photovoltaic industry rank first in the world.

In recent years, the national policy has continued to tilt towards the photovoltaic industry, boosting the realization of photovoltaic parity Internet access.

The dual cycle at home and abroad has been continuously promoted. Under the internal cycle, the domestic economy has grown steadily. In 2019, the annual GDP was close to 10 billion, with a year-on-year growth of 6.1%.

One belt, one road, was built up continuously under the external circulation, and the RCEP agreement was signed last year to further enhance our foreign trade level.

At the same time, we continue to attract foreign capital injection, and the actual level of foreign capital utilization has been strengthened. By 2020, the actual level of foreign capital utilization of Chinese enterprises has reached 144.4 billion yuan, which has increased steadily year by year, which will help China introduce foreign advanced technology and improve production quality.

In this context, China's photovoltaic application market continues to expand, with significant growth in power generation and installed capacity. According to statistics, from January to November 2020, China's photovoltaic power generation reached 130.76 billion kwh, a year-on-year increase of 16.2%, accounting for 3.5% of the total power generation.

In 2019, the cumulative installed capacity of photovoltaic power generation in China reached 204.3gw, a year-on-year increase of 17.3%, including 141.67 million kw of centralized photovoltaic power generation, a year-on-year increase of 14.5%; Distributed photovoltaic power was 62.63 million KW, a year-on-year increase of 24.2%. By 2020, the cumulative installed capacity of China's photovoltaic market was 253gw, ranking first in the world for six consecutive years.

Photovoltaic industry chain

The upstream of the photovoltaic industry chain includes single / polycrystalline silicon smelting, ingot casting / rod pulling, slicing and other links, the midstream includes solar cell production, photovoltaic power generation module packaging and other links, and the downstream includes the installation and service of photovoltaic application system.

1. Upstream of photovoltaic industry chain

The upstream link mainly includes the production of silicon wafer and silicon material.

Among them, the manufacturing and production of monocrystalline silicon wafer is mainly the process that silicon material is added to the furnace, monocrystalline silicon seed crystal is implanted, stretched into cylindrical crystal rod, and finally cut into wafer. The requirements for the production technology of monocrystalline silicon wafer are not high. Among the top ten enterprises in the world, China's photovoltaic enterprises occupy most seats, such as Sanyu photovoltaic, Zhonghuan Co., Ltd., kamdank, Jinglong group, sunshine energy, etc.

In contrast, the manufacturing technology threshold of polysilicon is high, and the polysilicon manufacturing industry has always been the first end of the photovoltaic industry chain and an important link affecting the development scale of the whole industry. However, the production technology of domestic polysilicon raw materials is backward, and the output supply is insufficient, so it mostly depends on foreign imports.

The profits of the whole photovoltaic industry chain are mainly concentrated in the upstream polysilicon production link. The profitability of upstream enterprises is obviously better than that of downstream enterprises, which is also the bottleneck restricting the development of China's photovoltaic industry.

2. Middle reaches of photovoltaic industry chain

The midstream link mainly involves the link of battery cells and battery modules.

In the whole solar photovoltaic cell industry chain, module manufacturing has attracted a large number of production enterprises with its characteristics of low investment, short construction cycle, low technology and capital threshold and closest to the market. It is one of the fastest developing links in China's photovoltaic industry chain.

According to statistics, there are more than 180 solar cell module manufacturers in China. Moreover, the products of most manufacturers have passed UL and other international certification.

At present, 98% of China's domestic photovoltaic modules are exported abroad. However, due to the low technical threshold of battery modules and the current development situation of the industry that the supply of upstream polysilicon raw materials is in short supply, most photovoltaic enterprises in China have the problems of overcapacity, uneven product quality and low product added value.

Although so far, most of the revenue of China's photovoltaic enterprises still comes from photovoltaic modules, enterprises are actively seeking transformation, moving closer to the downstream, and gradually transitioning from single product production to service-oriented enterprises.

3. Downstream of photovoltaic industry chain

The downstream link is mainly the application system link, which mainly involves the construction of household and commercial photovoltaic power stations. This is also the direction for China's photovoltaic enterprises to make transformation and upgrading under the development dilemma of high manufacturing technology threshold of upstream polysilicon and low added value of midstream module products in recent years, mainly through the use of Internet, big data, artificial intelligence and other technologies, Deep integration with photovoltaic industry to promote the development of intelligent photovoltaic industry.

For example, in cooperation with Alibaba, an Internet giant, Sanyou photovoltaic in China's photovoltaic industry has made continuous efforts in supply chain management, including suppliers, intelligent transactions, performance evaluation, supply chain finance, big data analysis and integrity guarantee system, with the help of Alibaba's perfect business ecological resources, and gradually formed an effective series of information flow, material flow Capital flow, combined with the intelligent system of manufacturing and sales platforms, to create a comprehensive intelligent supply chain service platform and realize the "three modernizations" in one procurement intelligence. It has accelerated the strategic step of transforming from a leading photovoltaic product supplier to a global intelligent photovoltaic solution provider!