The Fall of Price Stimulating Demands PV Installation Increasing by Over 150% in China in the First Eight Months

The Fall of Price Stimulating Demands PV Installation Increasing by Over 150% in China in the First Eight Months

The fall of price stimulates demands. China is the country boasting the fastest growth in PV installation. PV installation in China keeps growing fast. National Energy Administration released the data on September, 19th, from this January to August, the growth in PV installation in China was 113.2GW, hitting a new record, presenting a YOY increase of 154.5%. In the first eight months, the investment in power supply engineering for solar power generation enterprises was RMB 187.3 billion, presenting a YOY increase of 82.7%.

According to several practitioners, the fast growth in domestic PV installation in China mainly results from the big fall in the price of PV components, and the fact that there are task indicators for central enterprises and state-owned enterprises. When the price remained high last year, many big base projects could not afford to connect grid, and installed PV in the first half of this year. In this June, the price of PV components fell to RMB 1.3/watt, which could meet the requirements of central enterprises and state-owned enterprises on gross margin. In order to meet installation objectives set at the beginning of the year, central enterprises and state-owned enterprises will try to get connected to the grid within this year. In addition, it is peak season for PV installation in the second half of the year.