The revision is intended to further guide photovoltaic companies to reduce investment in photovoltaic manufacturing projects that simply expand their production capacity, while further improving the requirements for project process technology and energy management indicators. Against the backdrop of the continuous decline in the price of photovoltaic products, companies at various links in the main industry chain face relatively severe operating pressures. Leading companies with cost and technological advantages are expected to occupy a leading position in the process of the industry capacity clearing.
Guangda Securities has released a research report stating that the "Specifications for the Photovoltaic Manufacturing Industry" has been revised again, and the minimum capital ratio for new and expanded photovoltaic manufacturing projects has been raised to 30%. The average photoelectric conversion efficiency of newly-built and expanded N-type monocrystalline silicon cells must be no less than 26%. The revision aims to further guide photovoltaic companies to reduce investment in pure expansion of photovoltaic manufacturing projects while further improving the requirements for project technology and energy management. Against the background of the continuous decline in the price of photovoltaic products, companies in various links of the main industrial chain are facing severe operating pressures. Head enterprises with cost and technological advantages are expected to occupy a leading position in the industry capacity elimination process.
The Ministry of Industry and Information Technology released the "Specifications for the Photovoltaic Manufacturing Industry (2024 Edition)" and the "Announcement Management Measures for the Specification of the Photovoltaic Manufacturing Industry (2024 Edition)" (draft for comments).
Against the background of the continued changes in the development of the industry, the "Specifications for the Photovoltaic Manufacturing Industry" were revised again, and the minimum capital ratio for new and expanded photovoltaic manufacturing projects was raised to 30%.
After the State Council issued the "Several Opinions on Promoting the Healthy Development of the Photovoltaic Industry" (Guo Fa [2013] No.24) in 2013, the Ministry of Industry and Information Technology formulated and released the "Specification for the Photovoltaic Manufacturing Industry" on September 16, 2013, with the aim of guiding the transformation and upgrading of the photovoltaic manufacturing industry and promoting the sustainable and healthy development of China's photovoltaic industry. It was revised twice in 2018 and 2021.
Against the backdrop of the continuous expansion of photovoltaic production capacity and the continuous downward pressure on prices at various links in the industry chain, the Ministry of Industry and Information Technology has revised and released the draft for comments for the third time on the "Specification for the Photovoltaic Manufacturing Industry", which further guides photovoltaic companies to reduce investment in photovoltaic manufacturing projects that simply expand their production capacity. The minimum capital ratio for new and expanded photovoltaic manufacturing projects has been raised from the original 20% to 30% (after the first revision in 2018, the capital ratio requirement for new and expanded polycrystalline silicon projects was raised to 30%, while the capital ratio requirement for other photovoltaic manufacturing projects remained at 20%).
The requirements for project process technology have steadily increased, and the average photoelectric conversion efficiency of newly built and expanded N-type monocrystalline silicon solar cells must be no less than 26%.
The "Specification for the Photovoltaic Manufacturing Industry" guides the technological progress of the industry based on the principle of encouraging innovation and supporting application. In each revision, the technical requirements for the products of existing projects and new/expanded projects at various links in the photovoltaic manufacturing process have been continuously raised. In this draft for comments, higher requirements are proposed for the carrier lifetime, carbon/oxygen content, average photoelectric conversion efficiency of cells, average photoelectric conversion efficiency of modules, module attenuation rate, and other indicators. Additionally, detailed requirements are proposed for the carrier lifetime of N-type monocrystalline silicon-based heterogeneous junctions, average photoelectric conversion efficiency of N-type cells (no less than 26% for new and expanded projects), and average photoelectric conversion efficiency of N-type modules (no less than 23.10% for new and expanded projects).
Energy consumption requirements are gradually becoming stricter, and suggestions related to intellectual property rights have been added.
Energy consumption control is also a key guidance direction of the "Specification for the Photovoltaic Manufacturing Industry". In each revision, the requirements for parameters such as electricity consumption and water consumption at various links in the photovoltaic manufacturing process have been steadily increased. In this draft for comments, stricter limitations are proposed for the consumption indicators such as the reduced electricity consumption and comprehensive electricity consumption of the polycrystalline silicon process, the comprehensive electricity consumption of the silicon rod/silicon wafer/cell/module process, the water reuse rate of polycrystalline silicon projects, and the water consumption of the silicon wafer/cell process. In addition, suggestions related to intellectual property rights are proposed for the first time in this draft for comments, which encourage enterprises to strengthen the development, application, and protection of intellectual property rights and establish sound intellectual property compliance management systems.
Against the backdrop of the continuous expansion of photovoltaic production capacity and the continuous downward pressure on prices at various links in the industry chain, the Ministry of Industry and Information Technology has revised and released the draft for comments for the third time on the "Specification for the Photovoltaic Manufacturing Industry", which further guides photovoltaic companies to reduce investment in photovoltaic manufacturing projects that simply expand their production capacity. The minimum capital ratio for new and expanded photovoltaic manufacturing projects has been raised from the original 20% to 30% (after the first revision in 2018, the capital ratio requirement for new and expanded polycrystalline silicon projects was raised to 30%, while the capital ratio requirement for other photovoltaic manufacturing projects remained at 20%).
Investment advice: The revision of the "Specification for the Photovoltaic Manufacturing Industry" is aimed at further guiding photovoltaic companies to reduce investment in photovoltaic manufacturing projects that simply expand their production capacity, while further improving the requirements for project process technology and energy management. Against the backdrop of the continuous decline in the price of photovoltaic products, companies at various links in the main industry chain face relatively severe operating pressures. Leading companies with cost and technological advantages are expected to occupy a leading position in the process of the industry capacity clearing. It is recommended to focus on GCL Tech (H), JinkoSolar, and other companies.
Risk analysis: The progress of photovoltaic-related policies may be slower than expected; some auxiliary material supplies may not meet expectations, resulting in a lower-than-expected scale of photovoltaic installation. The investment and information construction of the State Grid may be lower than expected, which may hinder the landing of photovoltaic installations.