Published on : Aug 11, 2015
China is dominating the global solar power industry. The country is known for its high speed and low cost manufacturing. Harnessing solar energy is considered one of the key ways to cut down on the use of fossil fuel. It is also expected to meet the challenge presented by climate change. China currently boasts of top seven manufacturers of solar panels out of the top ten manufactures in the world. Moreover, these top firms from the country together provide around 40 per cent of the global solar power supplies.
Nevertheless, the nation is going through some up and downs in the solar industry. Now the expansion of this industry is under threat as many companies are trying to cope up with the massive production capacity they have and are tackling with the low profit margins and huge amounts of debt.
Take the example of Suntech, this Chinese firm was at a time one of the world’s biggest manufacturer in the global solar power industry, however, it went bust. Now international creditors are putting in efforts to recoup millions which were lent to this firm. Another company in the China solar power industry called Hanergy Thin Film Power Group that is a leader in the manufacturing of solar products in the world experienced a loss of half of its share value. This happened amid concerns about the corporate structure and the issues of overcapacity and falling of profit margins in the global solar power industry.
Another well-known firm from China, Yingli Green Energy Holdings that is considered to be a world leader in the industry was beset with rumors of slowdown in the demand. This led to a halt in production of the firm’s many plants. The price drop has put the country under considerable pressure. This also means that several solar firms in the world have also gone to the wall.