A recent report focused on ground-mounted photovoltaic power stations has highlighted a growing concern: the continuous decline in power prices is creating a harmful cycle. As power generation companies cut costs, the quality of equipment being supplied to the market has become inconsistent. This has led to a situation where inferior products are pushing out high-quality ones—a phenomenon often referred to as "bad money driving out good."
Another issue gaining attention is the quality of domestically-produced auxiliary materials. Concerns from downstream stakeholders have prompted some PV power plant investors to take proactive steps. To reassure buyers and mitigate risks, they are now turning to third-party testing agencies to ensure the reliability of their solar installations.
Accelerating the pace of localization is becoming a key strategy for many companies. In March this year, Zhongtian Technology announced an additional investment of 100 million yuan into its subsidiary, Zhongtian Photovoltaic Materials Co., Ltd. This move underscores the company’s commitment to strengthening its position in the photovoltaic supply chain.
Zhongtian Photovoltaic Materials, a joint venture between Zhongtian Technology and the Solar Backplane Project Team at Shanghai Jiaotong University, was established with a registered capital of 100 million yuan. Zhongtian Technology contributed 70 million yuan in cash, while the university's team provided 30 million yuan in technical capital. The company specializes in the design, R&D, production, and sales of solar cell backplanes.
According to its development plan, the company aims to reach a production capacity of 15 million square meters of backplanes by July 2013, with revenue expected to be between 1 to 2 billion yuan that year. Over time, it plans to expand its total production capacity to 40 million square meters, generating an output value of 1.6 billion yuan.
Similarly, Suzhou Gurong, another A-share listed company, recently announced a strategic partnership between its subsidiary Jingyin Xincai and Suzhou Artes Sunshine Power Technology. The collaboration focuses on the development and promotion of key photovoltaic materials, including positive electrode pastes for solar cells.
The Yuxing Group, known for producing polyester film, has also recognized the challenges in the solar industry. With overcapacity in solar cell and component production, the price of standard backplanes has dropped significantly. To address this, the company is accelerating R&D on specialized solar backing films to better meet customer needs and improve profit margins.
Coincidentally, Zhonglai PV recently received TÃœV Rheinland's first domestic certification for its backsheet, marking a significant milestone for the company.
In addition to these efforts, more component manufacturers are starting to incorporate products from newly emerging auxiliary material suppliers. For example, Jiangsu Xerav Photovoltaic Systems has decided to use Fuji Photo Film’s new photovoltaic backsheet in its monocrystalline and polycrystalline modules.
Despite the progress, the level of localization in key auxiliary materials remains low, with most markets still dominated by international players like Isovoltaic and Taiwan Hong Technology. Domestic companies such as Suzhou Saiwu, Suzhou Zhonglai, Huitianjiao, and Lucky Films are beginning to produce backplanes but are still in the early stages of development.
However, based on current industry trends, localization appears to be the way forward. Industry reports indicate that product quality, long-term relationships with customers, and pricing are the main factors influencing competition in the auxiliary materials sector. While domestic suppliers may offer cost advantages, their ability to meet quality standards will determine their future success.
Market research shows that as subsidies for solar power decrease rapidly, substandard auxiliary materials are entering the market, reinforcing the "bad money drives out good" trend. Although unqualified products and localization are not directly comparable, the widespread use of domestic materials could raise concerns among investors, particularly those with professional expertise.
Market analysts suggest that some investors are opting for third-party testing to ensure quality during procurement and construction. Xu Jie, general manager of Aerospace, believes that third-party verification can boost investor confidence in the quality of photovoltaic power plants, encouraging more investment in the sector.
He noted that many current investors rely on BT or BOT models, which limit their ability to hold large-scale projects. Without insurance or other guarantees, addressing concerns about project quality remains a critical challenge. This kind of pressure from the downstream market could be one of the biggest hurdles to achieving full localization of auxiliary materials.Our laminated plywood adopts environmentally friendly adhesive, with a complete variety of boards, and manufacturers have an advantage in direct selling prices.
Furniture FILM FACED PLYWOOD,Brown Faced Plywood for Construction,Brown Film Faced Water Proof,Plywood Film Faced Water Proof
Linyi Lanshan Weipu Rubber Factory , https://www.weipuwood.com