KOREAN SOLAR PHOTOVOLTATIC MARKET IS STALLING
 
The solar photovoltaic power market is growing little by little thanks to Renewable Portfolio Standard (RPS), but as exports increase Chinese products are quickly occupying the market. In the Yeongwol Project involving a 40-MW sthatwasimplementedrecentlyinKorea,productsfromChineseSCompanywereusedand,alsointheGeogeumdoProjectinvolvinga24-MWsproductsfromChineseCCompanywereused.  The two projects are the biggest solar photovoltaic power projects that have ever been implemented in this country.  The industry estimates that about half of the solar power generation facilities installed in this country since 2012 are Chinese products.  Small-scale projects for home use are in like circumstances. 
 
Experts point out it that it is inevitable that Chinese products prevail in the present atmosphere in which products are chosen by price alone.  It is also pointed out that the RPS has not contributed to the growth of the Korean recycling industry as expected in the initial plan.
 
 As many countries around the world are trying to protect their own domestic markets, the entry barrier to the market of Korea is lowering.  Europe failed to protect their market so they lost the foundation of their solar photovoltaic power industry.  In Europe, where Germany was the most enthusiastic in propagating solar photovoltaic power generation, it is the Chinese industry that took the most advantage.  Although several GW was installed yearly, the European industry finally had to give way to the Chinese industry.  Q cells SE, which ranked first in the world in the solar cell module business, was offered for sale because it lost in competition with the Chinese industry.  The U. S. market has also become dominated by Chinese companies as many American companies such as Solyndra, Evergreen Solar and SpectraWatt lost in competition.  It is evident that Korean companies will also lose their footing in the domestic market if the current situation continues.  The government plan that the solar power industry is to be fostered by the creation of demand in the domestic market will go amiss as well.
 
The reason that Chinese products are preferred by solar power generation entrepreneurs is because of price.  Due to the characteristics of a solar power generation plant that is in operation for over 20 years, the initial investment cost is an important factor that affects the total earnings from power generation.  Therefore, there is a need to increase economic efficiency by using the cheapest products as possible in solar plants.  However, experts point out that Chinese products are not necessarily advantageous in terms of generation quantity, which ultimately has a decisive effect on earnings from power generation. 
 
A solar photovoltaic module has an efficiency decrease of about 1% yearly.  Also, the operation period is long, which leads to high maintenance costs, and the difference in generation quantity is large depending on follow-up management.  By using domestic products that have advantages in terms of follow-up management, the difference in initial investment cost can be offset considerably.  Thus, it is clearly necessary to change the frame in which not only price and efficiency, but also the generation quantity compared to price, is considered when selecting the module.