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Photovoltaic industry recession stems from the lack of core technologies
In the face of a severe downturn in the photovoltaic industry, experts are calling for a deeper examination of the underlying issues. Among the most frequently mentioned concerns is the lack of core technological capabilities. To gain insight into this situation, China Power News spoke with Li Meicheng, Deputy Dean of the School of Renewable Energy at North China Electric Power University.
Li Meicheng pointed out that overcapacity is only a surface-level issue. He highlighted that in 2010, six Chinese companies ranked among the top ten globally in photovoltaic components, and by 2011, this number had increased to eight. “This ranking is the most convincing proof of our strength in the global market,†he said. According to Li, the real problem lies not in overproduction, but in external factors such as the sluggish global economy and trade protectionism. “Most of our products are exported, and trade barriers have severely impacted our ability to reach international markets.â€
He explained that when export channels are blocked, it creates a false impression of overcapacity. However, he emphasized that some technology-driven companies, like Japan’s Sanyo with its HIT battery technology, continue to thrive. “They have unique intellectual property and no direct competitors,†Li noted. In contrast, many of China’s crystalline silicon products are similar, leading to intense competition and limited differentiation.
To overcome these challenges, Li suggested that the industry should focus on two key areas: expanding distributed solar applications and integrating photovoltaic technology with traditional energy systems. “Under strong policy support, these strategies can provide a sustainable path forward,†he said.
Li also pointed out that the current industry slowdown offers an opportunity for innovation. “The winter of the photovoltaic industry is actually the spring for research and development,†he remarked. During periods of slow business, many technical professionals have shifted their focus to R&D institutions, including universities.
“Now is the time to invest in talent and technology,†Li advised. “During the 2008 and 2009 financial crisis, everyone was focused on making money. It's time to upgrade our technology now.†Additionally, he stressed the importance of a complete industrial chain in reducing operational risks. “Previously, excessive investment led to inefficiencies. Now, we must focus on improving the entire supply chain to ensure stability and long-term growth.â€
By strengthening core technologies and refining the industry structure, the photovoltaic sector can emerge stronger from the current challenges.