IMS Research: Chinese government doubles installation target to rescue domestic PV manufacturers

Facebook
Twitter
LinkedIn
Reddit
Email

China’s PV manufacturing base saw a major setback in the first and second quarters of 2012, with a severe slump in exports sparking the government to step in and further raise its PV installation target to 50GW, according to the latest quarterly report on China’s PV market from IMS Research. Tough competition in the global market place, vast oversupply and falling prices has put Chinese manufacturers’ balance sheets under huge pressure and China’s government has responded by more than doubling its long-term installation target from 20 to 50 GW by 2020.

“In an effort to restore confidence amongst its substantial PV supplier base and help meet its phenomenal energy requirements, China has more than doubled its PV installation target to 50GW by 2020,” commented Frank Xie, senior market analyst at IMS Research. “This highly aggressive target could be achieved given the rate of deployment that China has already managed to achieve in the relatively short amount of time since its national FiT was launched and provides a clear message that China will strongly support its PV industry in the future.”

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

According to IMS Research, contrary to US and EU supplier accusations, Chinese PV suppliers have continued to suffer along with the entire global supplier base amid highly competitive market conditions. Challenging conditions in the first half of 2012 and a bleak outlook in many major markets following incentive revisions and an on-going trade war in the US and Europe have resulted in production stalling. Although a small number of manufacturers have been able to maintain reasonable utilization levels, a large number of polysilicon fabs remain closed, meaning that average polysilicon production utilization in China fell below 50% in the second quarter of 2012.

The US’s recent ruling to impose import tariffs on cells manufactured in China has forced many suppliers to increase the amount of cells from Taiwan and other locations outside mainland China, impacting falling cell production. Prices also continued to fall during the quarter, with module prices falling by a further 7%, bringing further bad news for China’s suppliers whose profit margins are already under huge pressure.

At the beginning of July, Bloomberg New Energy Finance published figures demonstrating China securing hundreds of millions in dollars of financing. In the second quarter of 2012, China saw a surge in investment to US$18.3 billion, up 92% from the previous quarter. This in turn has diversified the range of products being sold into the market.

“Large MW-scale turn-key inverter solutions are forecast to increase their share of the Chinese PV market in 2012 driven by their highly competitive upfront cost, and ease of installation and maintenance,” added Xie.

Inverter solutions larger than 1MW have been forecast to double their share of the market over the next two years. IMS Research also predicts that China will follow a similar trend seen in the European PV inverter market and begin to employ an increasing amount of small three-phase inverters in its fast growing rooftop installation.

In conclusion, IMS Research forecasts that PV installations in China will be a key driver in the growth of the global PV market. Installations are expected to grow quickly in the second half of 2012, with over 10GW to be installed over the next two years.

Read Next

October 8, 2025
Officials from Norway and Egypt have agreed provisional terms for the financing of the Dandara solar park in Egypt, which is being built and operated by Norwegian IPP Scatec.
October 8, 2025
University of Sydney scientists have created the largest and most efficient triple-junction perovskite-perovskite-silicon solar cell on record.
Premium
October 8, 2025
The global energy transition will only be 'marginally impacted' by uncertainties in US energy policy, according to Remi Eriksen, CEO of DNV.
October 8, 2025
Saatvik Green Energy has secured new solar PV module orders worth more than INR7 billion (US$84 million), to be delivered in this financial year.
October 8, 2025
Australia's NEM achieved a new minimum operational demand record of 9,666MW, marking a 4% decrease from the previous record.
October 8, 2025
Frontier Energy plans to expand its Waroona Renewable Energy Project into a renewable energy precinct by 2031, targeting up to 1GW solar.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 21, 2025
New York, USA
Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK