China cuts support to 80% of Solar Companies as it looks to rationalize Overcapacity/ List of Chinese Government Support Companies
January 13, 2014India's JNNSM Phase 2 gets delayed due to Funding issues and Payment security concerns
January 15, 2014Chinese solar companies are benefiting hugely from the Chinese government’s decision to install 35 GW of solar power by 2015. China is going to install around 8-10 GW this year, with the 2014 target of 12 GW. The state run utilities as well as large solar companies in China are going on a development spree to benefit from this golden opportunity. Shungfeng plans to install an extremely ambitious 3000 MW of solar power per year in China, while others such as Trina Solar (TSL) plans a more prudent 500 MW each year. A number of companies have already installed large solar capacities in 2013, with Jinko Solar connecting 213 MW of solar plants in different Chinese provinces.
Read on GWI China set to become the “Super Solar Power”
Reasons why Chinese Solar Companies enjoy Monopoly position:
The Chinese solar companies have a virtual monopoly over the solar development business in China because of the following reasons:
1) Low costs
2) Easy financing by China Development Bank
3) Implicit preference for domestic companies and
4) Understanding of the local culture and economy.
Please note that most of the large solar farm projects given by Department of Energy (DOE) were won by the US companies, so it is not unusual for countries to favor their own. However, in China there are absolutely no projects being won by non-Chinese companies despite the massive scale of farms being built. First Solar’s massive Ordos solar farm project that was singed many years ago is gathering dust till date.
The US listed companies that can be used to leverage the massive solar farm building spree in China are:
1) Yingli Green Energy (YGE)
2) Trina Solar (TSL) and
3) Jinko Solar (JKS).
The other companies are also building large projects in China but not as big in scale as these three companies.