PV Industry: What to do in the midst of the outbreak?
2019 Novel Coronavirus can be considered as one of the biggest challenges that significantly affects the solar PV industry in the past few months. While the number one concern is the public’s health, it is obvious that the virus continuously hits major industries and the solar PV sector is not an exemption. The virus which first appeared in China results in price rises and potential supply shortages and project delays.
However, no matter how big is the impact of the outbreak on your business, you should know that you’re not alone on this. In fact, you’re most likely to be in a similar situation like the majority of solar businesses or installers worldwide since more than 60% of the world’s solar panels are manufactured in China, according to data from SunWiz.
But don’t fret, this is not the right time to panic over the outbreak. Remember that you can do something to improve the situation. Here are some tips to consider:
Look for alternative solar products available in the market
If your option is to wait for the situation to get better in the Solar PV industry, we might be looking by early April before it happens. We are sure that you don’t want to lose your customers by then. The option you have right now is the look for alternative solar products that of the same quality of the products you are offering. There are plenty of products on the market. You just need to research and expand your options in this kind of situation.
Develop a mitigation plan
PricewaterhouseCoopers (PwC), a multinational professional services network, is also suggesting for you to create a mitigation plan. Businesses should recognize supply chain, labor requirements and operational requirements of current projects, evaluate what outcomes may happen and oversee dangers that may appear.
- Identify – Identify the key areas where 2019 Novel Coronavirus may detrimentally affect your business. Look at the supply chain, labor prerequisites or operational requirements of current projects or the designs for projects which are under negotiation.
- Assess – Assess the effect of 2019 Novel Coronavirus on your business by thinking about the probability of certain occasions happening and the potential outcomes emerging from those occasions. Outcomes might be to cost, plan, specialized execution and capacity. You should consider the different legally binding liabilities that may emerge under the scope of Project Agreements that have either been agreed or are in the way toward being arranged.
- Treat – Implement activities to diminish the effect of 2019 Novel Coronavirus on your business and mitigate (to the extent possible) the dangers where you can. This may include looking for external legal advice to decide the hazard under the various project agreements and conducting commercial discussions or subcontractors.
- Stay Informed – The implications of 2019 Novel Coronavirus are yet to be completely observed or understood. It is imperative to remain educated regarding any developments of 2019 Novel Coronavirus (e.g. supply chain issues, visa restrictions and/or trade restrictions that may be implemented by government authorities). The circumstance is in a condition of flux and parties are urged to continually assess and triage the different effects of 2019 Novel Coronavirus on their business.
PwC (2020, March). COVID-19 and the solar industry. Retrieved from https://www.pwc.com.au/legal/assets/legal-covid19-solar-industry-040320.pdf
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