PV industry continues to be high! Diversified financing channels to help the industry take off, what are the investment opportunities?

, the output of all links in the photovoltaic industry chain reached a record high in 2022. The national output of polysilicon, silicon wafers, batteries and modules reached 827000 tons, 357GW,318GW and 288 GW respectively, with a year-on-year growth of more than 55% and the total output value of the industry exceeded 1.4 trillion yuan.

Recently, at the 2023 China International Clean Energy Expo, at the "2023 Photovoltaic Industry Development Investment and Financing Forum" hosted by the China Photovoltaic Industry Association, Liu Yiyang, deputy secretary-general and spokesperson of the China Photovoltaic Industry Association, said that from January to February this year, The new installed capacity of photovoltaics reached a new high, and the new installed capacity exceeded 20GW. He said that at present, photovoltaic has become the third largest installed capacity after hydropower and thermal power, and the new installed capacity of photovoltaic in China will also exceed 87GW this year, which is expected to be between 100GW and 120GW according to the forecast of the industry association.

In fact, since the "carbon peak, carbon neutral" goal, the new energy industry to achieve rapid development, China's photovoltaic industry financing environment has also improved significantly, diversified financing channels and financing methods to help the photovoltaic industry take off, for the photovoltaic industry to provide strong financial support.

PV industry financing environment improved significantly

"In terms of industrial investment, from 2020 to the beginning of this year, whether it is the four major industrial chains, or photovoltaic glass, auxiliary materials and accessories, the cumulative total amount has exceeded 2 trillion. In terms of bank financing, with the introduction of the central bank's carbon emission reduction support tools and other tools, new energy has become the focus of green financial support. The interest rate on loans to the photovoltaic industry has declined compared with previous years." Liu Yiyang said.

capital market has long been an important means of financing for domestic photovoltaic enterprises, and plays an important role in promoting the expansion of photovoltaic enterprises and improving the competitiveness of the global market. According to Liu Yiyang, in terms of equity financing, the equity financing tools used by photovoltaic enterprises listed on the stock and H shares in 2022 include IPO, non-public offering, convertible bonds and other channels. At present, 48 photovoltaic enterprises have used equity financing methods in the-share and Hong Kong stock capital markets, involving as many as 51 projects, with a total amount of more than 116.1 billion yuan raised, an increase of 57% over the same period last year.

, he further stated that in the primary market, at least 16 photovoltaic companies have successfully landed in the capital market in 2022, and most of the leading companies in all links of the photovoltaic industry chain have completed or a few have started listing plans. In the secondary market, 23 listed companies have completed private placement. He stressed that, especially last year, photovoltaic should be the most popular plate in the secondary market.

not only that, in order to implement the important decision-making and deployment of the dual carbon target and fully and accurately implement the new development concept, on November 8, 2021, the people's Bank of China officially launched the carbon emission reduction support tool to support 21 national financial institutions to provide preferential interest rate financing for projects with significant carbon emission reduction effects in the field of carbon emission reduction.

, introduced to reporters that the CDB's business segment includes two bases and one, focusing on infrastructure, basic industries and pillar industries. At present, according to national arrangements, the CDB has returned to its main responsibility and main business. Infrastructure will be the scope of its continued focus. He said that the wind power projects supported by CDB are about 107GW and photovoltaic power generation 62GW, accounting for about 22% of the country's total.

In addition, some cases of financial leasing and REITs have also proved that they are indispensable financing means for the photovoltaic industry. Zhang Zheng, general manager of the photovoltaic financial business department of Huaneng Tiancheng Financial Leasing Co., Ltd., said that the company has only focused on one area of new energy during its nine-year launch in the Beijing market, with a cumulative scale of 24 million projects installed and private 15 million installed, maintaining zero bad financial performance.

this form of financial leasing can give full play to flexibility, supplement the two major vacancies of short-term financing of photovoltaic projects under construction by central enterprises and financing of private enterprises, match the construction of bridge funds, and facilitate the completion of the project's grid-connected power generation transaction.

"China's REITs have been developed for more than two years, the policy has been introduced for exactly three years, and the issuance has been nearly two years. Today, there are 27 orders, and the proportion of clean energy in both quantity and scale is relatively high." Li Wenzheng, general manager of the REITs platform of Credit Insurance (Tianjin) Equity Investment Fund Management Co., Ltd., said.

is particularly noteworthy that some banking institutions are not only based on supporting the development of the domestic photovoltaic industry, they are also helping Chinese new energy companies to go global and solve financing problems in the context of global carbon neutrality. These financial institutions develop innovative green financing tools, reduce the financing costs of new energy projects, and help high-quality new energy companies go out to sea to achieve sustainable development and profitability. Take Minsheng Bank as an example. In the past ten years, there have been more than 100 investment and financing projects with a value of several billion US dollars, involving investment and mergers and acquisitions, new production lines, etc.

enterprises in China's photovoltaic industry are also actively studying the development and investment of overseas photovoltaic power stations. "We have made some explorations in financing methods, from traditional project financing, equity financing, and then to more complex project bonds, some subprime loans, and equity financing, such as private placement and public offering of asset securitization." Ates Sunshine Power Group investment and financing director Jiang Zhaoning said.

PV industry?

the proposal of the "double carbon" goal, the photovoltaic industry has become the "darling" of investment. In addition to the photovoltaic enterprises themselves through the expansion of production and the extension of the industrial chain to enhance their competitiveness, it has also attracted many inter-bank investors. So, what are the current investment opportunities in the photovoltaic industry, and what are the future investment prospects?

Liu Yiyang said that the global trade situation and the international political and economic environment are changing. On the one hand, they have brought major challenges to enterprises, and on the other hand, they have bred new opportunities.

, he believes that the photovoltaic industry has accelerated the survival of the fittest, and has also found new investment targets for new entrants and investment companies. He said that he is optimistic for the long-term, because the global response to climate change, the environmental development trend of the entire industry is beyond doubt, but specifically When choosing the target, don't blindly follow the trend, keep a cool head, scientific research and judgment, and rational decision-making. He emphasized that many photovoltaic investments are more successful in counter-cyclical investments. If you follow the trend, it may cause unexpected troubles.

Guoshou Equity Investment Co., Ltd., said, "the photovoltaic industry is really hot now. To be precise, new energy is very hot, which is equivalent to saying that new energy is the most certain track at present. The development in recent years is the most beautiful boy in the industry." he pointed out that China Life has invested hundreds of billions of dollars abroad and 350 billion in the field of new energy.

the integration of capital and technology, promote social and industrial progress, technological iteration, productivity progress, bring new expectations and expectations, promote the healthy development of society, but also promote the development of the industry.

Zheng Haijun pointed out that it is very certain that the N type replaces the P type. Within two years, TOPCon will gradually replace PERC as the mainstream, and HJT will accelerate its development. If you start a business or invest, this is a good opportunity. As long as the cost is low enough and the team found is good enough, it is an opportunity, because there is a price in quantity and it can be concluded that 5GW is enough.

Zheng Haijun stressed that photovoltaic applications are not as single as before, that is, centralized and distributed photovoltaics. Now they are relatively broad, such as BIPV (Building Integrated Photovoltaic) and European integration of optical storage and charging, etc. In his view, technological iteration has changed the demand for consumables, resulting in some investment opportunities. In the future, thin sheets, adhesive films, copper plating, etc. are also a trend. He believes that the use of capital to string up the entire industrial chain, and then extend the auxiliary materials and equipment, so that the risk of fault tolerance is low, and the investment income is much better than ordinary investment.