ENF: Over 300 small Chinese solar companies stopped operating in 2012

Facebook
Twitter
LinkedIn
Reddit
Email

ASP declines in 2012, driven by industry overcapacity throughout the PV supply chain, forced over 350 companies in China, from equipment suppliers, polysilicon producers to module manufacturers, to stop operations entirely, according to market research firm ENF.

ENF said that a significant influx of new entrants in 2011 led to the number of Chinese manufacturing companies directly involved in the PV industry increasing from 807 to 901.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

However, in 2012 the number of companies exiting the sector due primarily to bankruptcy was close to 300, reducing the number of players to 704, according to ENF.

During 2012 the number of core solar chain manufacturers dropped from 901 to 704, with a particular drop among panel manufacturers from 624 manufacturers to 454 manufacturers. In addition a further 180 core chain manufacturers went to sleep, meaning that there are now only 524 currently operating manufacturers, a 42% decline since 2011.

However, the market research firm suggested that many smaller module producers may remain dormant until demand improves and supply and demand dynamics come back into balance, at which point manufacturing operations could begin again.

Market dynamics for thin-film producers was said to be even worse. Crystalline module ASP declines have exceeded thin-film cost reduction efforts, with the majority of production of thin film modules halted.

ENF said that Chinese produced thin-film module prices dropped from €0.63/Wp (US$0.85) in December 2011 to €0.57/Wp (US$0.74) in December 2012, remaining at higher price points than crystalline-based modules.

Crystalline-based module prices stood at €0.68/Wp (US$0.92) in December 2011 but by December 2012 had fallen to just €0.46/Wp (US$0.60).

Based on manufacturing cost figures issued in Q3 2012, Yingli Green, one of the lowest cost producers in the industry, had non-poly silicon costs of US$0.53 per watt and a gross margin of PV modules of 0.3%. The company had targeted non-poly silicon costs of US$0.45 per watt by year end.

Read Next

July 22, 2025
Statkraft has posted quarter-on-quarter declines in electricity generation and earnings in the second quarter of this year.
July 22, 2025
Canadian energy firm Enbridge will build a 600MW solar PV project in Texas with a power purchase agreement (PPA) in place with social media giant Meta.
July 22, 2025
Chinese module manufacturer JA Solar will supply 1GW of solar modules to UAE power company Masdar for two projects in Azerbaijan. 
July 22, 2025
The investigation launched on polysilicon under Section 232 could present the biggest supply chain challenge to the US solar industry, according to analyst Wood Mackenzie.
July 22, 2025
Spanish independent power producer (IPP) Zelestra  has begun commercial operations at its 435MWdc Gorbea solar project in the state of Rajasthan, India. 
July 22, 2025
AEMO has reported a record-breaking surge in new renewable energy generation and storage assets reaching full operation within the NEM.

Subscribe to Newsletter

Upcoming Events

Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico
Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 22, 2025
Bilbao, Spain
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK