Favorable Policies for Photovoltaic Industry to Broader Market

Recently China State Administration of Taxation (SAT) have released a notice stating that while State Grid purchase photovoltaic power generation project products, SAT will make invoices by itself instead of power generation units. Besides, power generation units whose product sales volume goes beyond 20,000 Yuan is required to hand in 50% of tax amount payable as added value, which is considered as an important step to tackle allowance.

With the favorable policy, China photovoltaic output is expected to go beyond anticipation, the whole industry is promising. iAbrasive have had an research into China photovoltaic industry. Seen from the upstream crystalline silicon producers, first class manufacturers have been producing in a full capacity, and part of companies that once conducted production halt have begun restoring production. Take another look at silicon wafer, rate of polycrystalline silicon capacity utilization is relatively high; the demand for monocrystalline silicon wafer exceeds supply, which indicates a price increase.

The downstream module producers have gained profitability, at present global module capacity is approximately 63GW, expected to go beyond 50GW at the end of 2014; over 90% of big factories have come into operation. In terms of terminal station, quotas in Gansu, Qinghai, Xinjiang, Inner Mongolia was approved in June, installing peak is around the second half of 2014.--iAbrasive report