2009 Major Events in China's Solar Water Heater Industry

Release Time:2012.03.23 View:Times


    The "Home Appliances to the Countryside" policy in 2009 affirmed the efforts and contributions of the solar water heater industry over the years, putting the entire solar water heater industry on a positive track of development and fast growth. At the Copenhagen Global Climate Conference, Premier Wen Jiabao announced to the world that China's solar water heaters have the largest collection area in the world, injecting confidence into the development of the industry and pointing the direction.

    In 2009, solar water heater companies achieved many new breakthroughs: the industry scale grew rapidly, with growth rates reaching the total of the previous three years, and the industry's total output value exceeded 50 billion yuan. Large enterprises have emerged as a new force, with their scale and quantity rapidly increasing. First and second tier enterprises such as Taiyangyu, Sijimuge, Sangle, Linoret, Tsinghua Sunshine, Sangxia, and Haier have accelerated their expansion, and the speed of industrial integration and upgrading has also accelerated. Industry observers point out that the integration speed of the solar thermal industry will continue to accelerate in 2010, with the effects of big brands and enterprises becoming more prominent, and the industry concentration will further increase.

    1、Solar water heaters successfully go to rural areas and enjoy a 13% government subsidy

    At the end of December 2008, the "Opinions of the General Office of the State Council on Revitalizing Circulation and Expanding Consumption" proposed that from February 1, 2009, the promotion of home appliances going to rural areas would be extended from 12 provinces (regions, cities) to the whole country. At the same time, products such as motorcycles, computers, water heaters (including solar energy, gas, electricity), and air conditioners would be included in the subsidy scope of home appliances going to rural areas.

    On May 14th, the implementation of solar water heaters in rural areas, which had been postponed for nearly two months, was successfully carried out. A total of 92 companies and 806 products won the bid for solar water heaters in rural areas, and all 13 home appliance companies were listed. People can rightfully enjoy a 13% government subsidy when purchasing solar water heaters. Unlike other products going to the countryside, this solar water heater going to the countryside bidding implementation combines two standards, that is, the circulation standard is no longer separately tendered in each province, but bundled with the product standard. The document requires that the sales and maintenance service outlets of bidding enterprises be directly operated or authorized, with a network coverage rate of over 70% in each province.

    The rural solar energy market in China is huge. With the introduction of subsidy policies for solar water heaters, it will greatly enhance the purchasing power of rural consumers and effectively promote the development of the rural solar water heater market.

    2、The solar thermal industry has been approved by the national high-level, and the spring of the industry is coming

    At the United Nations Climate Change Summit held in September 2009, President Hu Jintao, on behalf of the Chinese government, made it clear that China would continue to take strong measures in energy conservation and emission reduction, development of renewable energy and nuclear energy, increasing forest carbon sinks, and developing a green economy, making its best contribution to the international community's joint response to climate change.

    On December 18th, Premier Wen Jiabao of the State Council announced to the world in his speech "Consolidating Consensus, Strengthening Cooperation, and Advancing the Historical Process of Coping with Climate Change" at the Copenhagen Climate Change Conference Leaders' Meeting: "China is the country with the fastest growth rate in new and renewable energy. Its hydropower installed capacity, nuclear power under construction scale, solar water heater collection area, and photovoltaic power generation capacity all rank first in the world." This statement showcases the latest achievements of China's new and renewable energy industry development so far. Previously, in his speech at the China Europe Summit held in Nanjing on November 30th, Premier Wen Jiabao mentioned for the first time that China's solar water heater collection area has ranked first in the world. Premier Wen Jiabao's high praise for this industry means that the solar thermal utilization industry has been included in the national new energy development strategy, and the solar thermal industry has ushered in a spring of development. Four Seasons Muge Solar, as an outstanding representative of China's solar energy industry, entered Copenhagen and had zero contact with the Global Climate Conference, showcasing the charm of China's solar energy industry.

    3、Sun Rain and Sang Le have successively surpassed the annual production of one million water heaters

    This year is a year of rapid development and expansion in the solar energy industry. In 2009, China's annual production of solar water heaters exceeded 40 million square meters, with a total inventory of 145 million square meters, making it a world superpower in solar water heaters.

    Under the influence of the financial crisis, the industry has become polarized, and top brands have vigorously expanded their production capacity. As of the end of October, Jiangsu Taiyangyu Group's production and sales of solar water heaters in 2009 exceeded one million units, breaking the annual production and sales record of China's solar thermal industry. This marks the official start of the centralization process in the solar thermal industry, and the emergence of "carrier level" group enterprises in the new energy industry is imminent. On December 18th, Shandong Sangle Solar successfully produced its one millionth digital solar power unit of 2009. The emergence of giants in the solar thermal industry marks that the solar water heater industry will embark on a path of large-scale success, and the process of industry concentration will further accelerate.

    4、Sun Rain Group won the bid of 220.4 million yuan for CCTV's 2010 Golden Advertising Resources, setting a new industry record

    On November 18th, in the bidding for CCTV's golden advertising resources, Sun Rain Group successfully won the bid for 220.4 million yuan for the CCTV's golden advertising resources "Weather Forecast" special, "Weather Forecast" 1+1, and "Morning News" annual special title. Following the 2009 CCTV Golden Resources Advertising Bidding Conference, Jiangsu Sunrain Group successfully bid 102.8 million yuan for the post standard version of CCTV prime time news broadcast and special section A ads, Sunrain Group has achieved a second success, creating a new high in the investment of CCTV golden advertising resources in the energy industry. On the stage of CCTV, Sun Rain Solar competes with traditional industry giants such as home appliances and dairy, which has a great brand enhancement effect on the entire solar thermal industry and also opens the prelude to the branding operation of domestic solar energy enterprises.

    5、Sun Rain collaborates with Lenovo Computer and Changan Automobile to integrate cross-border brand services for rural areas

    At the beginning of 2009, Taiyangyu signed a contract with Chang'an Company to provide 10000 Red Sun after-sales service vehicles to help solar home appliances go to rural areas; In September, Sun Rain Solar once again made efforts and joined forces with Chinese computer industry giant Lenovo to sign a strategic cooperation agreement, ordering 10000 Lenovo computers to serve the rural consumer market.

    Sunshine Rain actively responds to the national policy of "home appliances going to the countryside", deepens service standards and hardware conditions, and collaborates with two industry champion brands, Lenovo and Chang'an, to further accelerate the maturity process of China's solar thermal industry and enhance the comprehensive service system and level of the industry. With the deepening of global economic integration, this cross-border resource integration and multi-party win-win marketing model will become the mainstream of the market. In this direction, Sun Rain has once again become the industry leader.

    6、Passionate about public welfare and charity, building a socialized brand

    In October 2009, the first public welfare and charity fund in the industry, the "Sun Rain Public Welfare and Charity Fund," established by Sun Rain Group with a budget of millions, was officially launched. This move established a noble image for the solar thermal utilization industry, which is committed to improving social livelihoods and courageously undertaking social responsibilities.

    The purpose of the Sun Rain Public Welfare Charity Fund is to support and promote the development of public welfare undertakings, organize various social activities that are conducive to the development of public welfare undertakings, directly participate in poverty alleviation and entrepreneurship projects, conduct research on public welfare undertakings, promote media participation in public welfare undertakings, and contribute to the construction of a harmonious society. The Sun Rain Public Welfare Charity Fund aims to provide charitable assistance and carry out public welfare activities to the society. In addition to actively participating in social charity undertakings such as disaster relief, poverty alleviation, and poverty relief, it will also actively provide assistance to Chinese rural youth in entrepreneurship and employment, and improve the use of hot water in Chinese rural areas.

    At the same time, the large-scale public welfare activity "Sunshine Entrepreneurship Action" initiated by Four Seasons Muge Solar Energy has also been launched nationwide. This activity aims to promote employment and entrepreneurship among rural youth, enabling them to find a sunny path to wealth with the booming development of the new energy industry, and enabling more rural youth to realize their dream of becoming "bosses". It is a public welfare action advocating "national entrepreneurship, enriching the people and strengthening the country". The 'Sunshine Entrepreneurship Action' is the largest, most widely covered, and closest to rural people's employment and entrepreneurship project launched in China so far. The first phase of the activity was carried out in 200 phases nationwide, helping 20000 people achieve employment and entrepreneurship. This move has pioneered the Chinese solar energy industry and set an example for companies in the industry to actively participate in public welfare and fulfill corporate social responsibility.

    7、Hot water engineering and building integration drive the rise of flat panel solar energy

    Although the market share of flat panel solar energy is still small, the world solar energy market has always been dominated by flat panel solar water heaters. Flat panel water heaters have obvious competitive advantages in the engineering market due to their high product strength and easy integration with buildings. Many enterprises and research structures have actively conducted research on high-efficiency flat panel collectors, and the market share of flat panel products is bound to increase significantly in the future.

    It is reported that the key technology research and industrialization of the split type flat panel solar water heater undertaken by Haier Group, the project of "producing 1 million square meters of high-end solar water heater annually", has successfully passed the acceptance of an expert group composed of the Ministry of Science and Technology of China, Qingdao Science and Technology Bureau, and Laoshan District Science and Technology Bureau.

    The flat solar energy independently developed by Sun Rain Group has formed mass production, becoming the first solar energy enterprise in the industry to integrate vacuum tube and flat solar energy. Our products have been exported to over 100 countries and regions, achieving good benefits in both domestic and international engineering markets.

    The solar energy industrial park project built solely by Guangdong Wuxing Solar in Dongguan, Guangdong has also officially started. We will build multiple modern solar product production lines, including flat panel solar water heaters, vacuum tube solar water heaters, heat pump water heaters, high-efficiency solar photovoltaic cells, photovoltaic modules, etc., to achieve large-scale mass production of solar panels and flat panel collectors.

    8、Leading enterprises actively promote listing, foreign investment accelerates investment in China's new energy sector

    Under policy encouragement and a favorable market environment, the solar water heater industry has demonstrated unparalleled advantages compared to other traditional industries, attracting more attention from international investment companies to China's solar water heater industry. The pace of solar water heater companies going public has also accelerated. In order to further expand and strengthen, many solar water heater companies are constantly exploring ways to go public and attract venture capital, such as introducing venture capital funds, and some are preparing for going public. Solar water heater companies actively exploring financing channels and striving for listing can not only enhance their brand image and management level, but more importantly, improve the image and strength of the entire industry.

    In December 2008, Goldman Sachs and Dinghui Investment invested $100 million in Huangming. A US venture capital firm is in substantive contact with Four Seasons Muge Company to prepare for venture capital investment.

    On December 24, 2009, Standard Chartered Direct Investment Limited announced that it had completed a $23.3 million investment in Sunac Solar. This is Standard Chartered's first investment in the rapidly developing renewable energy sector in China. Standard Chartered stated that based on the country's preferential policies and the huge but unmet demand for hot water in China's vast rural market, the solar water heater industry in China will develop rapidly in the coming years. Solar water heaters can not only meet the demand for household hot water in rural China, but also greatly save the cost of public utilities for farmers, making them more attractive to farmers compared to electric or natural gas water heaters. The National Investment Corporation will continue to seek more investment opportunities in China's low-carbon economy in the future.

    9、Solar energy companies are racing to acquire land and accelerate their industrial layout

    Due to the large size of solar water heaters, transportation costs are high. If a single enterprise wants to achieve nationwide development, it must establish multiple production bases to reduce costs and quickly occupy the market. In 2009, companies such as Taiyangyu, Sangle, Tongji Sunshine, Rilida, and Sangpu launched land grabbing campaigns across the country.

    In April 2009, the construction of the Four Seasons Muge Luoyang production base began, marking the beginning of the integration and layout of the solar energy industry. In 2009, Sun Rain Group released the "533100" strategic plan: to develop 30000 employees within 5 years, drive 300000 people to find employment in related industries, and become the first enterprise in the industry to sell over 10 billion yuan.

    To this end, Sun Rain will complete the construction of five major industrial chain bases within three years, establish an international industrial layout within five years, and build two to three branch factories abroad, comprehensively promoting the development strategy of modernization and internationalization of industries. Sangle Solar has also released strategic goals, striving to achieve an annual production and sales of 10 million units by 2015, while accelerating its layout in China and planning to establish nine major production bases. In addition to the Jinan production base, new production logistics bases have been established in Haining, Zhejiang, Yueyang, Hunan, Huai'an, Jiangsu, Xianyang, Shaanxi and other places, with an annual production capacity of 3 million units. In the next three to five years, Sangle will establish new production bases in North China, Northeast China, and other regions, completing its nationwide layout.

    10、Marketing channels continue to sink and marketing models continue to innovate

    Under the promotion of solar energy going to the countryside, the competition for the rural market among solar water heater enterprises has entered a white hot stage, which has led to the overall sinking of the solar water heater industry channels. Some enterprises have changed the traditional model of provincial-level agents, city level agents, and township retailers, and directly set up retailers or direct sales stores in townships, making the channels flatter.

    The domestic solar water heater enterprises led by Sun Rain have launched an unprecedented rural market segmentation war, promoting the sales of solar water heater products in the rural market. In terms of innovative marketing models, Sun Rain adopted the model of urban-rural integration linkage in 2009. By delving into the county and township markets of various provinces, regions, and cities, and using carpet laying as a starting point in more than 1600 county towns across the country, it linked nearly 40000 township businesses and launched thousands of promotion and sales activities nationwide, greatly increasing terminal sales volume and achieving good social effects. With a three-dimensional marketing layout and strong terminal execution as guarantees, the single product sales of Sun Rain Thermal Wall Water Heater have firmly ranked first in the country,

    Huangming Solar has also launched diversified marketing models such as "urban-rural linkage, trade in, mansion super model, and farmer friendly model", which have effectively driven terminal sales. At the same time, some solar energy companies are constantly exploring and opening up new areas in terms of channels. Ru Yi Jia Neng organized two tourism marketing activities in Sun Valley, with a sales success rate of over 80% on site. Relying on the tourism marketing of China's Sun Valley can be said to be the only marketing model in the world. (Source: Huicong Home Appliances Network)