As of March 2011, there were 176 solar photovoltaic companies in Zhejiang Province, 78 of which were established after September 2010. Sixty-five percent of these new companies have joined the production of components. This is a set of data obtained from the Zhejiang Solar Energy Industry Association.

The number of new entrants reached 78 in half a year. Although PV experienced the 2008 Waterloo-like lessons of polysilicon, it still failed to block the new entrants. As the traditional domestic manufacturing industry has gradually reduced its profit margins and the higher gross profit margin of the photovoltaic industry, Zhejiang Province, with its strong capital, has once again witnessed a new round of photovoltaic expansion.

According to the Zhejiang Provincial Government’s “New Energy Promotion and Application and Industrial Development Plan for Photovoltaic Industry in Zhejiang Province” (hereinafter referred to as the “plan”) on November 24, 2009, the focus of Zhejiang's development of the photovoltaic industry is to increase the photovoltaic conversion efficiency of photovoltaic cells. Ling Yun, deputy director of Zhejiang Economic and Information Commission, once said that Zhejiang Province encourages the development of photovoltaic industry, but does not include polysilicon purification projects that are not allowed in the province's resources and environment. This also means that Zhejiang Province is encouraging the development of battery components, not silicon purification. The requirements for the capital and technology of components are much lower than those for silicon purification. For private enterprises with weaker financial strength, they are more willing to choose to enter the component packaging links in the middle reaches of the PV industry chain.

Hu Shushu, a senior practitioner in the solar photovoltaic polysilicon film and battery module market strategy research, said that the gross profit rate of photovoltaic industry components can often reach 15% to 35%. Even if some companies have insufficient technology and are not large enough, the gross profit margin can still be It is 8%-10%, which is quite attractive for many manufacturing companies in Zhejiang where the gross profit margin is about 5%.

Shen Fuxin, secretary general of the Zhejiang Solar Energy Industry Association, stated that of the 78 newly established enterprises after September 2010, 30 new members of the solar photovoltaic industry were from Wenzhou, a private enterprise in Zhejiang, and Kaihua County, a polysilicon purification base in Zhejiang Province. The number of new enterprises entering the photovoltaic industry reached 27, and the total number of PV companies owned by the county exceeded the record of 57 companies. It is understood that these newly recruited members are almost all small-scale investments. No one has an investment amount of 800 million yuan, and the 800 million yuan amount of investment is the basic amount of funds for investing in a production capacity of 1,000 tons of polysilicon production lines.

The prospect of new enterprises is worrying. According to a number of professional survey agencies, global PV module prices will fall by 9%-17% from last year. New module manufacturers will have no profit due to lack of stable and low-cost upstream battery supply. It may even be a loss.

Loss of production has been the first loss, the cost price is higher than the European market price. In this regard, Hu Shu said that now is not a good time to enter the photovoltaic industry on a large scale. “The newly-added companies have chosen the wrong time to enter the industry and the prospects are worrying.” Hu Weishu said that with the downward adjustment of the tariffs for the on-grid PV power prices in Germany and Italy, the module prices will inevitably continue to fall; according to iSuppli's research on the photovoltaic industry The report predicts that the average price of polysilicon solar modules worldwide will fall by 9% in the first quarter of 2011 and by another 6% in the second quarter.

Spoilers are making waves. Zhejiang Province proposed in the "planning" that by 2012, the output value of the photovoltaic industry in the province should reach 200 billion yuan. In 2010, the output value of the photovoltaic industry in the province was 90 billion yuan, which was 6.43 times the 2009 output value. However, some companies with no strength are playing the roles of industry spoilers in order to counterfeit well-known brands and conduct fake certification of substandard products to produce inferior products. In this regard, Shen Fuxin said: "This is hurting the industrial base of China's photovoltaic industry, and it needs the government to solve it. The government's focus is not to provide capital subsidies for on-grid tariffs, but to provide a platform for enterprises to improve industrial technology. , Focus on supporting leading companies in technology while also strengthening quality supervision, such as the customs can detect the quality of export components, so that substandard products can not be out of the country, and heavy penalties involved companies.