Demand for energy continues unabated The long-term outlook for solar PV is still promising

Solar PV has long been considered as a substitute for fossil fuels, but bankruptcy, the sharp drop in stock prices and the pressure of loan pressures continue to impact the industry. However, in recent years, the global demand for electricity has soared, and the developing countries are in desperate need of alternative energy. The prospects of solar energy companies cannot be said to have no hope.

The reason for the sharp drop in the price of photovoltaic modules and solar components (such as polysilicon, wafers, and modules) is that there are too many manufacturers at the same time. In the past few months, at least seven PV module manufacturers filed for bankruptcy or applied for insolvency loans, including two German companies SolarMillenium and SolonSE. More solar companies are also in a critical financial situation, in order to spend the solar PV industry winter.

First Solar, the benchmark of the US solar giant and solar manufacturing, also revised its 2011 profit outlook. FirstSolar Chief Executive MikeAhearn said that due to the low threshold for competitors to enter the industry, resulting in falling profits of the industry, leading to the imbalance of the structure of the solar photovoltaic industry.

In the past, due to factors such as the U.S. government's encouragement of clean energy, global climate change issues, solar energy companies, and the European government’s high subsidies for the installation of photovoltaic modules and equipment, it was the reason why solar energy companies sprang up a few years ago. At that time, people swarmed into solar photovoltaics. In the industrial sector, we only think about how to make profits immediately, but we have not formulated a long-term plan for proper planning.

Worse, the Chinese government's request for banks to relax restrictions on manufacturing loans many years ago was the biggest cause of solar oversupply. According to Bloomberg New Energy Finance, some banks have provided a total of 43 billion U.S. dollars in borrowing funds for alternative energy companies since 2009. After the solar energy companies that sourced funds competed to build factories and produce, they also led to Europe and the United States. The same industry also competes and produces.

However, the prospects of the solar photovoltaic industry still cannot be completely dark. In the next few years, due to the surge in electricity demand, the urgent need of alternative energy sources in developing countries, and the suffering of power generation plants in developing countries, the solar photovoltaic industry will be exposed. Photovoltaic producers have more sophisticated production technologies, and solar companies are increasingly not needing government subsidies.