Chinese solar companies, including JA Solar Holdings Co., Ltd., Suntech Power Holdings Co., Ltd. and LDK Solar LDK Solar Co., Ltd. recorded in the third quarter loss, due to declining sales and rising inventories. Low-cost solar panels in China, supply surge, as well as changes in some of Europe’s major markets in the context of solar energy subsidies, the cost of solar energy companies race to the bottom, and even lead to competition with Chinese manufacturers who hurt themselves. JA Solar Tuesday’s results show that second-quarter net loss of 376 million yuan.
Although the results were published there was a brief short-covering rally, after all, is a catastrophic solar sector investment, because the Chinese long-term overcapacity and cut subsidies in Europe, the price of solar modules in a year dropped by 40%. Manufacturers plan to increase 50% next year solar cell production capacity and demand forecast is only half that level, which means that the price of solar cells will continue to face pressure, despite the growing number of European and U.S. companies have been squeezed out of the the industry. However, the good news is, with the excess capacity of photovoltaic solar power to change the commercial development of economics, making it a public utility, few large-scale solar power array in the case of subsidies can also be self-development.
