New Regulations in the Photovoltaic Industry: Technical Threshold Raised to 26%

On the 20th, the Ministry of Industry and Information Technology promulgated the "Photovoltaic Manufacturing Industry Specification Conditions (2024)" (hereinafter referred to as the "Specification Conditions") and the "photovoltaic manufacturing industry specification Announcement Management Measures (2024)", aimed at guiding photovoltaic enterprises to avoid the simple pursuit of capacity expansion projects, instead focusing on technological innovation and improving product quality.

Since its first release in 2013, the "Standard Conditions" have undergone timely revisions in 2015, 2018 and 2021, which have effectively promoted the transformation and upgrading of the industry and healthy development. At present, although the industry has maintained rapid growth, it is also facing problems and challenges such as intensifying disorderly competition, adjusting market fluctuations, accelerating technology iteration, etc. Therefore, the "Standard Conditions" need to be further revised and improved according to the current situation and changes.

The new version of the "Standard Conditions" has been revised in five aspects: First, the technical index requirements have been improved. Considering the advanced technology level of the industry and the status quo of industrial development, the technical indicators of related products have been improved, and the requirements of N-type batteries, components and other products have been increased. The average efficiency index of new monocrystal silicon photovoltaic cells and module projects has been increased from 23% and 20% respectively to the new P-type battery and module efficiency of not less than 23.7% and 21.8%, and the new N-type battery and module efficiency of not less than 26% and 23.1%. Given that the average efficiency of the current mainstream N-type TOPCon in the industry is 25%, the revision will increase the efficiency of new N-type batteries to no less than 26%, significantly raising the threshold for new battery projects, and helping to effectively curb the duplication of production capacity.

Secondly, quality management and intellectual property protection have been strengthened. Emphasizing the high reliability and long life requirements of products, the process and material warranty period has been increased from 10 years to 12 years, and the reliability test requirements have been increased. At the same time, the protection of intellectual property rights has been strengthened, and relevant requirements such as "products produced by research and development should comply with the legal provisions on intellectual property protection, and there has been no infringement ruled by patent law enforcement agencies in the past three years" have been added.

Third, the requirements for green manufacturing and environmental protection have been strengthened. Requirements such as carbon footprint accounting for photovoltaic products have been increased, and enterprises are encouraged to pass environmental management system and energy management system certifications to guide the industry to improve the level of green development. At the same time, the green requirements of the production process of enterprises are strengthened, enterprises are encouraged to participate in the revision of green and low-carbon standards related to the photovoltaic industry, and enterprises are guided to carry out research and development and industrial application of photovoltaic product recycling technology.

Fourth, capital requirements have been raised. The minimum capital ratio of new and expanded projects in the whole industry chain such as silicon wafers, batteries, and modules has been increased, and the "new and expanded polysilicon manufacturing projects have a minimum capital ratio of 30%, and other new and expanded photovoltaic manufacturing projects have a minimum capital ratio of 20%" has been modified to "new and expanded photovoltaic manufacturing projects have a minimum capital ratio of 30%".

Finally, the dynamic adjustment mechanism of the list of announced enterprises is optimized. In accordance with the principle of "in and out", strictly carry out the dynamic management of the list of standardized enterprises, requiring enterprises to regularly submit self-inspection reports and production and operation conditions, and supervise and inspect the quality of enterprises' products, and promptly revoke their announcement qualifications for enterprises that do not meet the requirements of the "Standard Conditions".

After the release of the new "Standard conditions", the Ministry of Industry and Information Technology will carry out propaganda and interpretation work to guide photovoltaic companies to avoid projects that simply pursue capacity expansion, and instead focus on technological innovation and improving product quality.