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Policies favorable for distributed photovoltaic power generation applications usher in new developments
The solar photovoltaic industry, a key player in the new energy sector, has experienced rapid growth in recent years. China has maintained the top position in global photovoltaic output for five consecutive years. However, challenges such as product homogenization, overcapacity, and low-price competition have emerged alongside this growth. Additionally, adverse international factors have led to export restrictions on Chinese photovoltaic products in the past two years, pushing the industry into a difficult phase.
When faced with adversity, resilient individuals not only survive but also find opportunities for growth. In response to the tough market conditions, companies in the new energy sector have taken proactive steps, focusing on transformation and upgrading, exploring new markets, and shifting from being pure product suppliers to offering comprehensive services and applications.
According to an official from the Hangzhou Economic and Credit Commission, these efforts have helped businesses adapt and evolve. To further support the development of the photovoltaic industry, the State Council issued "Several Opinions on Promoting the Healthy Development of the Photovoltaic Industry" in July, aiming to reach a total installed capacity of 35 million kilowatts by 2015. This policy is expected to drive significant growth in the sector.
In August, the Ministry of Industry and Information Technology released the "Regulations for the Photovoltaic Manufacturing Industry (Draft for Soliciting Opinions)," which builds upon existing policies and lays the groundwork for future development. Meanwhile, Zhejiang Province is actively working on new policies to guide and promote the growth of its new energy industries.
Looking at the current state of the industry, leading companies are setting the pace, while small and medium-sized enterprises are thriving through innovation. From 2012 to 2023, Hangzhou’s new energy sector, particularly the photovoltaic industry, has seen both challenges and progress. Despite the difficulties, many companies have managed to differentiate themselves and reduce price-based competition.
According to the Municipal Economic and Information Commission, positive changes have been observed in domestic policies and market demand. Leading companies have driven smaller firms to focus less on subsidies and more on innovation and product differentiation. This shift has led to new business models and increased competitiveness.
Statistics from the Hangzhou Statistics Bureau show that in 2012, the city's solar energy and other new energy industries achieved a sales value of 18.723 billion yuan and an industrial added value of 4.405 billion yuan. While European and North American exports declined, emerging markets like Africa and Latin America showed growth, expanding the export market to 19 countries and regions.
In the first half of this year, the added value of the new energy industry reached 1.822 billion yuan, with a continued reduction in the decline rate. However, despite these improvements, the industry still faces financial and policy-related challenges. The long investment cycles and limited access to funding remain major hurdles.
Local support policies for the new energy sector are lagging behind those of other provinces. While cities like Hefei and Ningbo have introduced their own initiatives, Hangzhou is still in the process of developing similar policies. Experts suggest that encouraging SMEs to collaborate with leading companies, focusing on niche markets, and promoting product differentiation can help the industry move toward sustainable growth.
To overcome the challenges, the industry must continue innovating, pursuing high-end development, and exploring new markets. Companies like Chint and Zhengtai Solar have successfully diversified their markets, reducing reliance on the EU and expanding into Asia, Africa, and South America. These strategies have enabled them to maintain profitability even during industry downturns.
Policy support plays a crucial role in the development of the new energy sector. The promotion of distributed photovoltaic power generation has become a national priority, signaling a shift from large-scale projects to localized, market-driven solutions. The implementation of supportive tariffs and subsidies has further boosted the industry's potential.
As favorable policies continue to take effect and local initiatives are introduced, Hangzhou's new energy industry is poised for a new wave of growth. With innovation, strategic adjustments, and strong policy backing, the sector is well-positioned to thrive in the coming years.