Chinese Govt to crack down on solar panel industry shady business and quality

Rybold · May 6, 2011

Published: May 5 2011

Chinese authorities are to launch an investigation of quality standards in China’s solar panel industry, the largest in the world, underlining Beijing’s growing efforts to regulate runaway growth among clean energy manufacturers.
China is also the world’s largest producer of wind turbines, and Chinese manufacturers have rapidly stolen market share from their western competitors in recent years because of their cost advantage.

China’s solar module production capacity has tripled in the last two years to reach 17.6GW this year, or 62 per cent of global manufacturing capacity, according to data provider iSuppli. Of that capacity, roughly 22 per cent is for “tier three” producers who would be most likely to be affected by a quality crackdown. Analysts say 2010 was such a good year for solar manufacturers globally that it prompted a wave of copycat entrepreneurial activity in China as businessmen set up small solar manufacturing firms.

“A lot of people looked at this and said we will throw a few million at this and make a lot of money,” said Joseph Quinn, analyst at Macquarie Bank. “Some of them are setting up false facilities where they are not making anything, they are just buying modules and sending them on . . . Or even buying the cell and selling it to the next person, claiming it is their own.”

Such a move could be a boost to competitors in the global solar industry if the investigation temporarily slows China’s production. Solar manufacturers had been braced for a tough year ahead as governments cut solar energy subsidies.

China’s dominance in clean energy has prompted complaints from manufacturers outside China, as well as a US Trade Representative investigation into possible subsidies to Chinese turbine makers.

Although the timing for the investigation is still unclear, analysts said that any crackdown on quality was likely to have the greatest impact on smaller, lower end manufacturers selling into the Chinese market. China’s largest solar panel manufacturers already meet US and European Union standards and sell primarily to overseas markets.
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FT.com / China - China reflects on solar panel growth

AussieOwner · May 6, 2011

Helps explain why it took my supplier so long to get me my panels. At one stage, they found that the Chinese company completely ignored the Australian contract, complete with delivery agreements, and sold their stock to European clients, as they could earn more from the European contracts. My supplier ended up buying the panels that were finally installed on my house from South Korea. The upside of the exercise was that I actually ended up with more efficient panels.

Chinese Govt to crack down on solar panel industry shady business and quality

Rybold globally warmed member

AussieOwner Active Member

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Chinese Govt to crack down on solar panel industry shady business and quality

Rybold globally warmed member

AussieOwner Active Member