China Ministry of Industry and Information Technology issued revised standards for the photovoltaic manufacturing industry in a bid to reduce PV projects focused solely on expanding production capacity and to encourage consolidated and clustered development.
While the PV industry has been growing rapidly, it faces challenges such as intensified competition, market fluctuations, and accelerated technological advancements, and the revisions address the changes in the industry, said the ministry.
The revisions are aimed at optimizing layout, adjusting structure, controlling capacity, encouraging innovation, and supporting applications, it said.
The revised standards discourage PV companies from simply expanding production capacity and raise the minimum capital ratio for new and expanded projects from 20% to 30%.
Technical standards have also been raised. The efficiency standards for new P-type cells and modules are set at 23.7% and 21.8%, respectively, from previous 23% and 20%, while for N-type cells and modules, the benchmarks are set at 26% and 23.1%, in order to curb redundant capacity expansion and promote high-efficiency production.
Furthermore, the revisions place greater emphasis on quality and intellectual property protection. The warranty period for products has been extended from 10 years to 12 years, and stricter reliability tests are now required. Companies must also ensure compliance with intellectual property laws and must not have had any IP infringement cases in the past three years.
The revisions also include stronger green manufacturing requirements, such as the need for carbon footprint calculations and encouragement for obtaining green certifications. Companies are also encouraged to invest in the development and commercialization of photovoltaic product recycling technologies.
Furthermore, the revisions emphasize green manufacturing and environmental protection requirements and it introduces carbon footprint accounting for PV products, encourages companies to obtain certifications such as environmental management and energy management systems, and guides the industry to improve green development levels.
The photovoltaic industry has been struggling with overcapacity, homogeneity, and unsustainably low pricing, with the prices of mainstream products falling below production costs, leaving the industry stuck in a cycle of irrational competition. The industry ministry aims to address these challenges through stricter quality standards and technical requirements.
“There are too many operators in the industry, making self-regulation and coordination extremely difficult. It is necessary to appropriately reduce the number of operators and consolidate the industry by raising technical and quality standards,” said Zhong Baoshen, Chairman of Longi Green Energy, at the company’s third-quarter earnings briefing.
To ensure implementation of these new conditions, the industry ministry will work with research institutes, industry associations, and testing agencies, it said.
Companies will be required to regularly submit self-assessment reports and operational updates, and product quality will be closely monitored and those failing to meet the requirements of the conditions will have their certification revoked.