Shuffle for China’s PV Industry




The global photovoltaic (PV) market reached US$50 billion in 2010, spurring the rapid growth of China‘s PV industry. However, its high profitability is coming to an end. Local manufacturers of solar panel modules are likely to enter a price war as PV modules face further price erosion due to subsidy reductions worldwide and a domestic oversupply since earlier this year.

According to a report from UK-based IMSresearch, Suntech Power, a global leading provider of solar energy solutions in China, overtook the US’s top thin-film panel producer First Solar as the world’s largest PV modules manufacturer in terms of shipments in the third quarter of 2010.

However, the gross profit margin of Suntech PV modules experienced a sharp decline from 30.3 percent in 2005 to 20 percent in 2009, with net profit margin falling to 5.1 percent in 2010 from 13.5 percent in 2005. In the third quarter of last year…

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