Business & Management in East Asia

Team A

Solar Energy in CHINA

20084154 TMBA Manish Anand
20093880 TMBA Bokyung Lee
20093696 TMBA Min-ho Kim
20093663 TMBA Hun-gu Kang

Solar Energy in China Team A

 Contents
1. General Solar Industry

2. Value Chain Analysis

3. Core competitiveness in Value Chain

4. Chinese subsidy

5. Conclusion

Solar Energy in China Team A 2

 General Solar Industry

Solar Energy in China Team A 3

 Value Chain Analysis

Solar Energy in China Team A 4

 Core competitiveness in Value Chain

Solar Energy in China Team A 5

 Success factor of Chinese PV companies ?

Chinese Govt. subsidy

and(OR)

Huge local market

•Before 2008, Most of the Chinese firm exported about 90-95% of total output

•Foreign companies could also have taken advantage of this huge market
But domestic demand will help them to sustain their growth
• New subsidy policy to boost domestic demand
•For example "golden sun“ brings 640MW demand just within few months*

* ref. solarenergy.com
Solar Energy in China Team A 6
 Success factor of Chinese PV companies … ?

Two types of government subsidy!!!

1. Direct subsidy- SEZ , tax credit, tax

rebate on equipment import etc

2. Indirect- Government asks bank to

issue loan @ 0.0% interest

Source: Solarbuzz
Solar Energy in China Team A 7
 Conclusion

It is really the "implicit" or "embedded" type subsidies that

has really tilted competitiveness heavily in favor of the
Chinese vis-a-vis European/US manufacturers as labor costs
are really not much of an issue in PV manufacturing.

Zero cost of debt and highly subsidized utility rates

are the real success factor of the Chinese firms

Solar Energy in China Team A 8

 Q&A

Thanks

Solar Energy in China Team A 9