Explain how China has affected the price of solar panels



Article by

James Pilkington




Explain how China has affected the price of solar panels




Solar Panels

In recent years, the business of solar energy has really taken off with many countries seeking to get their hands on the action . Manufacturing had been concentrated in countries like Germany and Spain, where they had long been encouraged to develop this sector. However, China seems to be the country that currently dominates the industry with the rapid expansion of long-term loans and investments from the Chinese government. This led to the import of comparatively cheaper Chinese solar panels in various countries to seek renewable energy goals.

Thanks to globalization and free trade, the flow of goods from different countries is left completely unfettered. Therefore, if a country is able to produce a product and market it at a lower price than another, they stand to gain considerably, which explains why China has targeted the area of solar energy. With the Chinese government controls the actions of  other countries, their leaders are able to choose worthy projects that may require significant investment but will eventually be profitable businesses.

The Development Bank of China paves the way for loans to these companies in the Chinese solar panel commissioned by the government. The difference between the banks of the BDC and most regular commercial is that it raises most of its long-term funding obligations, where donors can not withdraw money until the term is finished. This allows the BDC and the government to identify areas such as solar, where long-term benefits may be realized and invest in them appropriately.

The effects can be clearly seen when looking at the top ten producers of solar cells in 2006, there were 2 from China and in 2010 there were 6. These Chinese solar energy companies received heavy investment between these two dates and have made rapid progress by claiming global solar market share. With the government’s investment, these companies have benefited from economic principles, such as economies of scale by buying in bulk to reduce costs. Capital would have been used on research and development to explore ways to create better solar panels. Regarding the cost of labor in countries like the U.S., Germany and Spain, Chinese labor is much cheaper. In addition, there is less pressure on the Chinese companies to abide by pollution or environmental standards, as shown in 4-day event in Haining, where hundreds of villagers accused a solar panel plant of toxins released into a local river. All these factors have allowed China to establish a strong presence in the solar industry and be able to offer solar panels at prices that would have been unthinkable earlier. There was an average decrease of 33% this year and experts predict a further decline before the year is out, there has been no better time to invest in relatively cheap photovoltaic solar panels. However, people may want to wait to see if additional savings could be made from Chinese rule in the industry and opening up trade between countries.

About the Author

James lives in Cardiff and thinks we could all do more to help the environment such as using solar panels, which can be purchased from WDS green energy.

James is a business consultant and has worked with several companies in his career. He believes that more must be done to protect the environment and people should consider investing in solar panels in the area of ??Gloucestershire. For more details, please visit WDS green energy.Use and distribution of this article is subject to our guidelines Editeurpar which the original author’s information and copyright must be included.

James Pilkington


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