COVIS-19 has threatened almost every sector, including the renewable sources industry. Over the past few months, a drop in solar installations has been observed, but despite this, the outlook for the industry seems to be as strong as always. In a recent report, experts have been encouraging companies and manufacturing firms to build solar power plants in place of their existing coal power plants considering that solar power plants are cheaper.
In China, the solar panel manufacturing giant, Jinko Solar, has just started with phase 1 of their operations in their new $1.6billion factory. With this addition, the total capacity of their production is increased by 16GW of panels per year–this is twice the capacity of their already large production.
The company plans to start its second phase of this factory expansion this August, with the completion expected to be in February 2022.
Jinko Solar’s increase in capacity might be significant, but the market for Solar PV right now is more competitive than ever, with manufacturers slashing their prices due to a drop in the prices of its components.
This leaves Jinko Solar and other companies no choice but to drop their prices as well. At this point, the profits of these companies are under pressure.
While Jinko Solar and other large companies can handle this pressure, it is questionable for smaller companies.
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