The PV industry access draft has been completed.

The draft "Environmental Conditions for the Solar Photovoltaic Industry," prepared by the Ministry of Industry and Information Technology, has been finalized, with two recent discussion meetings held to review its provisions. The access conditions clearly outline requirements such as production scale, R&D capabilities, and conversion efficiency, covering silicon rods, wafers, solar cells, crystalline silicon modules, and thin-film solar cells. These standards are seen as one of the six key supporting policies introduced following a State Council decision to boost the photovoltaic industry, aligning with efforts to phase out outdated production capacity. However, opinions on the proposed access conditions vary. Some argue that while having standards is essential, a one-size-fits-all approach could be counterproductive. Others suggest that setting thresholds should not completely exclude smaller companies but instead encourage healthy competition. A third perspective claims that the current standards are too low, potentially failing to address the issue of overcapacity in the industry. According to the draft, crystalline silicon enterprises must have a minimum production capacity of 200MW in at least one of the segments—wafers, cells, or modules—within the same facility. Industry insiders, however, believe that 200MW is still too low, suggesting a threshold of at least 500MW or even 1,000MW. They argue that without stricter criteria, many unprofitable enterprises with large capacities may continue to operate, further worsening the market. Zhao Yonghong, secretary general of the Zhejiang Province Photovoltaic Industry Technology Innovation Strategy Alliance, believes the 200MW requirement is somewhat high. He warns that lowering it to 100MW could allow more small businesses to survive, while raising it to 1,000MW would severely impact Zhejiang’s industry. A senior executive from a Zhejiang-based listed PV company adds that if the standard is set too high, few companies would meet it, making compliance impractical for many firms. While production scale can serve as a benchmark, the executive emphasizes that product performance, cost-effectiveness, and quality are more critical. Sustainable development, R&D investment, and innovation should be prioritized over rigid, uniform metrics. Market mechanisms, rather than arbitrary thresholds, should guide the industry's evolution, with the government playing a supportive role. In terms of technical specifications, the draft requires polycrystalline silicon modules to have a photoelectric conversion efficiency above 14%, and monocrystalline modules above 15%. Currently, leading manufacturers already exceed these figures, with average efficiencies of 15% for polycrystalline and 16% for monocrystalline modules. Many participants in the discussions believe the standards should be higher to better reflect industry realities and help reduce overcapacity. It’s also important to differentiate between overcapacity and overproduction. In Zhejiang, where over 200 PV companies operate, many small and medium-sized enterprises (SMEs) remain viable despite their size. Li Xinfu, founder of one such SME, highlights that his company remains profitable by focusing on emerging markets rather than relying solely on scale. If strict production capacity limits are enforced, companies like his may be unfairly disadvantaged. Industry leaders stress that the goal should be to eliminate excess capacity, not enterprises. While standards are necessary to bring order to the sector, they must be designed to encourage innovation and differentiated growth, rather than simply shutting down smaller players. Ultimately, the success of the photovoltaic industry depends on balancing regulation with flexibility, ensuring sustainable and competitive development.

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