Solar power generation upstream and downstream enterprises

Is solar industry upstream or downstream?

The solar industry can be divided into its upstream manufacturing and downstream installation/finance segments. Downstream companies enjoy higher barriers of entry in the form of brand and sector complexity. Upstream refers to the production of raw materials or components, while downstream refers to the production of finished goods or services.

What is a downstream solar company?

Downstream solar companies are involved in the installations and financing aspects of the solar industry. They usually handle all aspects of the downstream segment. Companies like SolarCity or Vivint Solar (VSLR) are examples of downstream solar companies and are currently enjoying high gross margins.

What are the effects of upstream PV industrial policies on downstream products?

In general, (1) For the impacts of upstream PV industrial policies on the downstream products, the policy-conducting effects are not obvious, that is, one unit of price drop due to the subsidy for the upstream PV enterprises leads to 0.016-unit price drop of downstream products, which is mainly due to the nature of the PV industry in China.

What's the difference between a midstream and a downstream PV industry?

The industry’s midstream produces batteries, cell components, and related products. The downstream is an integration of the PV installation system. China's PV industry that produces silicon of high purity relies on foreign countries for raw materials, key technology and equipment, and market demand.

What is the difference between brand name and downstream solar business?

Brand name plays a huge role in the downstream markets of financing, leases/ppa, etc. in the solar industry, whereas the downstream solar business is more of a service than a product. Individuals may view different companies' panels as substitute products (panels are mainly used for functionality).

Why do China's PV Enterprises prefer to participate in the upstream or Midstream industries?

China's PV enterprises prefer to participate in the upstream or midstream industries rather than the design of PV power generation systems for users.