Although the so-called "Apocalypse" didn't arrive, for China's photovoltaic (PV) industry, 2012 was a rollercoaster year marked by overcapacity, trade disputes with Europe and the U.S., and a deep crisis. Known as the "Doomsday Crisis," this year tested the resilience of many PV companies. However, if 2012 is seen as a disaster year for the sector, it can also be viewed as the beginning of a new chapter for the domestic market. By year-end, a wave of new policies was introduced, setting the stage for growth and signaling the dawn of a new "spring" in the solar industry.
It’s rare for an industry to experience such a dramatic turnaround in just a few weeks—shifting from a "winter" to a "star of tomorrow." Even if much of the change is still reflected in research reports and media coverage, the excitement among industry insiders is real and palpable.
This shift came largely due to a more supportive stance from the government toward the solar energy sector. A major turning point occurred on December 19, when Premier Wen Jiabao chaired a State Council meeting to discuss policies aimed at promoting the healthy development of the PV industry. Key measures included focusing on distributed solar power and establishing regional grid-connected benchmark prices based on local resources. These announcements sent a strong signal of support, reinvigorating the entire sector.
Good news started coming both domestically and internationally. After facing challenges like the U.S. "double anti-dumping" investigation, European anti-subsidy actions, and a drop in Italian installations, the global solar market saw continued price declines in 2011. This led to a sharp drop in polysilicon prices—falling over 90% from $400/kg to under $40/kg—and many companies either shut down or reduced production. PV module prices also dropped from $0.95/W to $0.66/W, leading to significant profit declines across the supply chain.
Despite these challenges, the Chinese government began rolling out a series of supportive policies. In September, the National Energy Administration released the "Twelfth Five-Year Plan for Solar Power Generation." In October, the State Grid Corporation issued guidelines for integrating distributed PV systems. Meanwhile, several ministries launched the "Golden Sun" demonstration projects, with the second batch announced in December, totaling 3.83 GW.
Industry leaders like Yingli's Wang Zhixin noted that the third quarter was the worst for PV companies, with shipments dropping significantly. But with the new policies in place, the outlook has brightened.
Internationally, the solar market is also showing signs of recovery. Germany plans to raise electricity tariffs in 2013 to support renewable energy, while Japan continues to expand its solar capacity. Global installed capacity reached 13 GW in the first half of 2012, and industry analysts expect it to exceed 17 GW in the second half, bringing the annual total close to 30 GW.
One of the key barriers to solar development has been grid connection and subsidy levels. Recent policies have addressed these issues, with the State Grid accepting small-scale PV systems and offering subsidies ranging from 0.4 to 0.6 yuan per kWh. Analysts believe these measures could boost returns by around 10% in certain regions.
Looking ahead, the rise of distributed solar power is expected to drive rapid growth in 2013. GF Securities predicts that domestic PV installations could reach 7–8 GW, and the polysilicon industry may see stabilization after years of overcapacity.
While the road ahead remains challenging, the combination of supportive policies, growing demand, and improved market conditions has given the solar industry renewed hope. As one expert warned, however, careful management will be essential to avoid repeating past mistakes and prevent another "crazy" cycle.Floor Paint Scraper,Wall Plaster Scraper,Floor Coating Squeegee Frame,Plastering Epoxy Floor Painting Squeegee
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