Trina Solar's second quarter financial results, published today, reveal that the Chinese PV giant shipped 943.3 MW of solar modules in Q2 – a soaring 69.1% increase on the first quarter of the year, when 558 MW of modules were shipped.
This solid Q2 performance was in line with company projections and helped drive net revenue to $519.4 million, a quarter-on-quarter increase of 16.8%. However, with the cost of revenues increasing by 24.3% in Q2, gross profit fell slightly (12.3%) to $80.2 million, delivering a gross margin of 15.4%. In the first quarter of the year, the margin was above 20%.
Trina Solar chairman and CEO Jifan Gao said that the company's strong brand and well-developed global sales network allowed Trina to capitalize on commercial opportunities in multiple markets, with the U.S. singled out for particular praise.
"Notably, we continue to see robust demand for our product from our many valued long-term customers in the U.S., thanks to Trina Solar's established market position and superior product offerings," said Gao. The CEO also revealed that domestic demand in China bounced back after a "relatively weak first quarter", before stressing that the company was also pleased with its fledgling downstream business.
"We are excited by the potential we see in our downstream business and will continue to invest in building a mature pipeline of projects," said Gao. That pipeline includes the construction of a 90 MW power plant in China's Xinjiang Province, as well as a 49.9 MW solar project in the U.K.
"We believe that the U.K. is a good target country for investment due to its well-established market and mature investment environment," added Gao.
More DG and hope for U.S. consolidation
Trina Solar's report revealed that the company will continue to place a greater share of importance on its distributed generation (DG) projects in China, pointing to the fact that a rather hefty pipeline of DG PV projects is set to come online in the country throughout the remainder of the year, including a 13 MW carport installation in Hunan Province and a 7.4 MW rooftop PV project undertaken in Changzhou, Jiangsu Province.
In light of the recent U.S. anti-dumping and countervailing duty preliminary rulings, Gao reiterated that the company is more committed than ever to the U.S. market.
"We believe that Trina Solar will continue to play an important role and maintain our leading market position in the U.S. thanks to our solid and long-standing reputation for high quality products and services." Trina's plans are boosted by the knowledge that it was hit with one of the lowest anti-dumping tariffs of all the leading Chinese solar PV manufacturers.
Operating costs and looking ahead
Across the second quarter of 2014, operating costs increased by 21.2% quarter-by-quarter, rising to $64.5 million. However, that figure represents a year-on-year decrease of 14%, which helped Trina turn a 2013 Q2 operating loss of $23.9 million into a $15.7 million operating income gain this year.
At the end of Q2, the company had $562.7 million in cash and cash equivalents, and expects to enjoy a strong end to the year. As of June 30, Trina boasted in-house ingot and wafer production capacity of 2 GW and 1.6 GW respectively.
PV cell manufacturing capacity stood at 2.7 GW, with module manufacturing capacity 3.6 GW. By the end of the year, Trina expects module capacity to rise to 3.8 GW, cell capacity to reach 3 GW, and wafers and ingot manufacturing capacity to reach 1.7 GW and 2.2 GW respectively.
Guidance for Q3 forecasts solar module shipments in the range of 1,060 MW to 1,120 MW, placing Trina on course to hit its 2014 guidance of 3.6 GW to 3.8 GW modules shipped.
Tuesday 26 August 2014
Sunday 15 June 2014
China gives tax boost to distributed PV power generation Read
Chinese tax authorities will in July introduce measures designed to ease the tax burden on distributed PV power generation.
The government is seeking ways to promote distributed PV power generation projects, and from July 1 will ask all buyers of distributed PV power – which are mainly companies owned by the State Grid Corporation of China – to invoice power generators.
This simplified purchase procedure lessens the tax burden on all parties, making power transactions easier and, in most cases, less expensive. The decision by the State Administration of Taxation is intended to boost the installation of distributed PV power projects by stripping away the often-arcane taxation laws that have been known to cripple development in the sector.
Currently, most producers of distributed power are non-enterprise entities and individuals that have traditionally experienced such difficulties with the taxation process.
A further change sees electric power companies permitted to collect value-added taxes from PV power producers on behalf of the authorities whenever monthly revenues exceed 20,000 yuan ($3,252).
China's distributed solar power sector is a growing portion of the country’s PV industry. With 800 MW added last year, the distributed PV sector of China now accounts for 3.1 GW, with the majority of projects adopted by hospitals, schools, communities and government offices that are permitted to sell any excess electricity they have generated after self consumption.
The government is seeking ways to promote distributed PV power generation projects, and from July 1 will ask all buyers of distributed PV power – which are mainly companies owned by the State Grid Corporation of China – to invoice power generators.
This simplified purchase procedure lessens the tax burden on all parties, making power transactions easier and, in most cases, less expensive. The decision by the State Administration of Taxation is intended to boost the installation of distributed PV power projects by stripping away the often-arcane taxation laws that have been known to cripple development in the sector.
Currently, most producers of distributed power are non-enterprise entities and individuals that have traditionally experienced such difficulties with the taxation process.
A further change sees electric power companies permitted to collect value-added taxes from PV power producers on behalf of the authorities whenever monthly revenues exceed 20,000 yuan ($3,252).
China's distributed solar power sector is a growing portion of the country’s PV industry. With 800 MW added last year, the distributed PV sector of China now accounts for 3.1 GW, with the majority of projects adopted by hospitals, schools, communities and government offices that are permitted to sell any excess electricity they have generated after self consumption.
Omnikhyd-3k-TL2 (new)
The brand-new Omnikhyd-3k-TL2 has 98.3% conversion efficiency; combines charge controller, storage inverter and solar inverter into one. It can automatically judge on-grid/ off-grid mode, connect into smart grid and realize peak load shifting. With perfect battery charge curve and protection plan, it is compatible with plumbic acid, Li-lon and so on.
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Has active and passive model, passive model can be done by different bus system.
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Real time monitoring of battery temperature and BMS system.
Build in Wifi & GPRS as option, flexible monitoring via iPhone Android and Computer.
Standard 7 years warranty, 10 years option, system are very stable.
Features
Collection of house power consume by current measurement, Automatically control solar energy as self consume.
Battery charge-discharge Power up to 3kW, Real no electricity billing in the future.
Has active and passive model, passive model can be done by different bus system.
Battery voltage only 48V, reduce system costs.
IP 65 protection, waterproof and dustproof.
Real time monitoring of battery temperature and BMS system.
Build in Wifi & GPRS as option, flexible monitoring via iPhone Android and Computer.
Standard 7 years warranty, 10 years option, system are very stable.
Omniksol-13k/15k/17k/20k-TL2 (new)
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Meet VDE-AR-N4105, BDEW approval .
Built-in lightning protection module as an option.
Features
Include three series, 7 models.
Both economical and high efficiency.
Smaller and lighter, 20kW only 43kg.
External Inductor, exquisite design.
LCD screen with four buttons.
Ethernet wifi or GPRS cascade data communication technology.
User, distributor, Omnik headquarter all-round remote control.
Meet VDE-AR-N4105, BDEW approval .
Built-in lightning protection module as an option.
Solar inverter 1k/1.5k/2k-TL2(new)
Omniksol-2k-TL series inverters use world class technologies, the maximum convert efficiency could reach 97.5%, MPPT adaptation efficiency is high up to 99.9%...
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Features
Built-in GPRS as option
Built-in Wifi as option
External inductor and built-in fan
smaller and lighter, 2k only 11kg
High performance DSP for algorithm control
VDE-AR-N 4105 certification
Self-developed topology design
Multi-button touch interface
LCD screen visible at night
Standard 10-year warranty, extensional up to 15 years
learn more
Omniksol-2k-TL Photon Efficiency No.1 up to 3k in the world——Photon test Jan.2012
Features
Built-in GPRS as option
Built-in Wifi as option
External inductor and built-in fan
smaller and lighter, 2k only 11kg
High performance DSP for algorithm control
VDE-AR-N 4105 certification
Self-developed topology design
Multi-button touch interface
LCD screen visible at night
Standard 10-year warranty, extensional up to 15 years
learn more
Friday 6 June 2014
US adds new trade tariffs in China anti-subsidy case
The US Department of Commerce has announced preliminary anti-subsidy rates of up to 35% for Chinese solar manufacturers.
At the hearing on Tuesday Wuxi Suntech was hit with rates of 35.21%, Trina Solar with 18.56% and all others with 26.89%.
The preliminary duties have been imposed following a petition from manufacturer SolarWorld maintaining that Chinese manufacturers have been evading US duties first introduced in late 2012 by using manufacturers in other countries to produce cells for assembly into modules in China.
For now the preliminary ruling would seem to give SolarWorld what it had asked for. The DOC document states: “The merchandise covered by this investigation is crystalline silicon photovoltaic cells, and modules, laminates and/or panels consisting of crystalline silicon photovoltaic cells, whether or not partially or fully assembled into other products, including building integrated materials.
“For purposes of this investigation, subject merchandise also includes modules, laminates and/or panels assembled in the subject country consisting of crystalline silicon photovoltaic cells that are completed or partially manufactured within a customs territory other than that subject country, using ingots that are manufactured in the subject country, wafers that are manufactured in the subject country, or cells where the manufacturing process begins in the subject country and is completed in a non-subject country.”
However, the DOC said it had not yet decided if the scope of products covered by the preliminary ruling will remain the same in its eventual duty order, due to be decided later this year.
Richard Weiner, a partner at law firm Sidley Austin, who is representing the Chinese manufacturers, said: "A critical element of this preliminary ruling is that the commerce department expressly declined to rule at this point on the issue of scope. It thus remains to be determined what products may be covered by any eventual duty order."
The DoC will make a further preliminary decision on 25 July on allegations of dumping of Chinese products in the US.
The US arm of SolarWorld, welcomed the ruling. “Today is a strong win for the US solar industry,” said Mukesh Dulani, president of SolarWorld Industries America. “We look forward to the end of illegal Chinese government intervention in the US solar market, and we applaud Commerce for its work that supports fair trade.”
But the Coalition for Affordable Solar Energy, which has opposed SolarWorld’s action, said it was “deeply disappointed” by the decision.
“The ruling is a major setback for the entire U.S. solar industry because it will immediately increase the price of solar power and cost American jobs in one of fastest-growing sectors of the U.S. economy,” a CASE statement said.
“By accepting SolarWorld’s request to expand the scope of the solar dispute, although they are continuing to entertain scope comments, the Department of Commerce is disregarding decades of legal precedent that define scope by applying the ‘country of origin’ and ‘substantial transformation’ trade rules. The use of SolarWorld’s proposed scope is also fundamentally inconsistent with the department’s own previous ‘scope’ determination in the 2012 solar cell dispute.
“Today’s announcement is just the first determination in a legal process which is set to drag on throughout this fall, taking its toll on the industry with every step. At a time when the U.S. solar industry is primed to continue its record-breaking growth and began 2014 recording the second largest quarter for solar installations in history, US solar businesses now find themselves collateral damage to litigation which is increasing module costs and freezing future investment through pricing uncertainty.
“This is a global dispute that will not be resolved through litigation alone. The best path forward continues to be a negotiated settlement between the US and Chinese governments to end this dispute and create the conditions for growth. But to achieve this, SolarWorld must come to the table and work with the industry to find a settlement that benefits the entire global supply chain. We ask the White House to help by convening the parties for true negotiations, and we urge SolarWorld to make its conditions known and join the rest of the US industry in support of the Solar Energy Industries Association (SEIA) proposal.”
The SEIA has been working on a negotiated settlement to the ongoing trade differences between the US and China, but SolarWorld has so far refused to take part in any discussions.
PV Tech will be reporting further reaction later today.
The Department of Commerce’s ruling document can be seen in full below: Solar Products US Department of Commerce Anti-subsidy Prelim results
At the hearing on Tuesday Wuxi Suntech was hit with rates of 35.21%, Trina Solar with 18.56% and all others with 26.89%.
The preliminary duties have been imposed following a petition from manufacturer SolarWorld maintaining that Chinese manufacturers have been evading US duties first introduced in late 2012 by using manufacturers in other countries to produce cells for assembly into modules in China.
For now the preliminary ruling would seem to give SolarWorld what it had asked for. The DOC document states: “The merchandise covered by this investigation is crystalline silicon photovoltaic cells, and modules, laminates and/or panels consisting of crystalline silicon photovoltaic cells, whether or not partially or fully assembled into other products, including building integrated materials.
“For purposes of this investigation, subject merchandise also includes modules, laminates and/or panels assembled in the subject country consisting of crystalline silicon photovoltaic cells that are completed or partially manufactured within a customs territory other than that subject country, using ingots that are manufactured in the subject country, wafers that are manufactured in the subject country, or cells where the manufacturing process begins in the subject country and is completed in a non-subject country.”
However, the DOC said it had not yet decided if the scope of products covered by the preliminary ruling will remain the same in its eventual duty order, due to be decided later this year.
Richard Weiner, a partner at law firm Sidley Austin, who is representing the Chinese manufacturers, said: "A critical element of this preliminary ruling is that the commerce department expressly declined to rule at this point on the issue of scope. It thus remains to be determined what products may be covered by any eventual duty order."
The DoC will make a further preliminary decision on 25 July on allegations of dumping of Chinese products in the US.
The US arm of SolarWorld, welcomed the ruling. “Today is a strong win for the US solar industry,” said Mukesh Dulani, president of SolarWorld Industries America. “We look forward to the end of illegal Chinese government intervention in the US solar market, and we applaud Commerce for its work that supports fair trade.”
But the Coalition for Affordable Solar Energy, which has opposed SolarWorld’s action, said it was “deeply disappointed” by the decision.
“The ruling is a major setback for the entire U.S. solar industry because it will immediately increase the price of solar power and cost American jobs in one of fastest-growing sectors of the U.S. economy,” a CASE statement said.
“By accepting SolarWorld’s request to expand the scope of the solar dispute, although they are continuing to entertain scope comments, the Department of Commerce is disregarding decades of legal precedent that define scope by applying the ‘country of origin’ and ‘substantial transformation’ trade rules. The use of SolarWorld’s proposed scope is also fundamentally inconsistent with the department’s own previous ‘scope’ determination in the 2012 solar cell dispute.
“Today’s announcement is just the first determination in a legal process which is set to drag on throughout this fall, taking its toll on the industry with every step. At a time when the U.S. solar industry is primed to continue its record-breaking growth and began 2014 recording the second largest quarter for solar installations in history, US solar businesses now find themselves collateral damage to litigation which is increasing module costs and freezing future investment through pricing uncertainty.
“This is a global dispute that will not be resolved through litigation alone. The best path forward continues to be a negotiated settlement between the US and Chinese governments to end this dispute and create the conditions for growth. But to achieve this, SolarWorld must come to the table and work with the industry to find a settlement that benefits the entire global supply chain. We ask the White House to help by convening the parties for true negotiations, and we urge SolarWorld to make its conditions known and join the rest of the US industry in support of the Solar Energy Industries Association (SEIA) proposal.”
The SEIA has been working on a negotiated settlement to the ongoing trade differences between the US and China, but SolarWorld has so far refused to take part in any discussions.
PV Tech will be reporting further reaction later today.
The Department of Commerce’s ruling document can be seen in full below: Solar Products US Department of Commerce Anti-subsidy Prelim results
allegations against Chinese PV firms threaten EU price deal
Chinese solar companies are violating a settlement between the European Commission and Chinese government by selling products in the EU below a minimum agreed price, it has been alleged.
European solar representative body, EU ProSun, said today it had submitted over 1,000 pages of documentation to the EC’s trade directorate detailing apparent proposals by Chinese manufacturers to sell at below agreed prices.
Last year, Chinese companies avoided paying duties on imports into the EU by agreeing to sell their products at prices no lower than a minimum price, which at the time was set at €0.56/watt.
ProSun, set up by German PV manufacturer, SolarWorld, and the chief agitator behind the claims against Chinese manufacturers that led to the original EU inquiry, has always contested the agreement and now maintains that Chinese companies are “neither paying duties, nor observing the minimum price agreement”.
"EU trade rules are being systematically violated by Chinese manufacturers,” said Milan Nitzschke, president of EU ProSun and also vice president of SolarWorld.
“Not one Chinese manufacturer seems to follow the agreed minimum prices for imports into the EU. Dumped Chinese solar products continue to flood the EU market, destroying European industry and jobs. The commission must act fast to stop these violations and implement sanctions."
A statement released today by EU ProSun does not name any specific companies, but details 1,500 instances of Chinese firms allegedly seeking to circumvent the rules.
“Chinese tricks range from kickback payments camouflaged as ‘marketing grants’, to false product shipments massively under-declaring the quantities actually imported into the EU. It is like a Chinese fish market – anyone who thinks the price is not low enough simply gets another crate of solar modules for free!" Nitzschke said.
EU ProSun also alleges that the “majority” of Chinese companies use “shady middlemen” in deals, who work as a “buffer” between the Chinese companies and the European authorities.
ProSun said the whole price undertaking would now need to be reviewed in the light of its allegations.
"The minimum price agreement that the European Commission negotiated with China is unworkable. There is still no end in sight for Chinese dumping and the EU must impose duties across the board in the face of such illegal and flagrant trade violations," Nitzschke said.
A spokesman for the commission told the Wall Street Journal the evidence would be scrutinised and could lead to the withdrawal of the agreement.
The ProSun allegations come only a day after the US government announced new preliminary anti-subsidy duties on Chinese solar imports in America. The ruling was made following a petition by the US of international manufacturer SolarWorld.
PV Tech will report further detail of this story as it emerges.
European solar representative body, EU ProSun, said today it had submitted over 1,000 pages of documentation to the EC’s trade directorate detailing apparent proposals by Chinese manufacturers to sell at below agreed prices.
Last year, Chinese companies avoided paying duties on imports into the EU by agreeing to sell their products at prices no lower than a minimum price, which at the time was set at €0.56/watt.
ProSun, set up by German PV manufacturer, SolarWorld, and the chief agitator behind the claims against Chinese manufacturers that led to the original EU inquiry, has always contested the agreement and now maintains that Chinese companies are “neither paying duties, nor observing the minimum price agreement”.
"EU trade rules are being systematically violated by Chinese manufacturers,” said Milan Nitzschke, president of EU ProSun and also vice president of SolarWorld.
“Not one Chinese manufacturer seems to follow the agreed minimum prices for imports into the EU. Dumped Chinese solar products continue to flood the EU market, destroying European industry and jobs. The commission must act fast to stop these violations and implement sanctions."
A statement released today by EU ProSun does not name any specific companies, but details 1,500 instances of Chinese firms allegedly seeking to circumvent the rules.
“Chinese tricks range from kickback payments camouflaged as ‘marketing grants’, to false product shipments massively under-declaring the quantities actually imported into the EU. It is like a Chinese fish market – anyone who thinks the price is not low enough simply gets another crate of solar modules for free!" Nitzschke said.
EU ProSun also alleges that the “majority” of Chinese companies use “shady middlemen” in deals, who work as a “buffer” between the Chinese companies and the European authorities.
ProSun said the whole price undertaking would now need to be reviewed in the light of its allegations.
"The minimum price agreement that the European Commission negotiated with China is unworkable. There is still no end in sight for Chinese dumping and the EU must impose duties across the board in the face of such illegal and flagrant trade violations," Nitzschke said.
A spokesman for the commission told the Wall Street Journal the evidence would be scrutinised and could lead to the withdrawal of the agreement.
The ProSun allegations come only a day after the US government announced new preliminary anti-subsidy duties on Chinese solar imports in America. The ruling was made following a petition by the US of international manufacturer SolarWorld.
PV Tech will report further detail of this story as it emerges.
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