On July 15, the Chinese State Council released its "Several Opinions on Promoting the Healthy Development of the Photovoltaic Industry," a policy widely seen as a game-changer for the sector. The document aims to reduce the industry’s reliance on foreign markets and accelerate domestic solar adoption. It sets ambitious targets, including an average of 10 GW of new photovoltaic installations annually from 2013 to 2015, with a total capacity goal of 35 GW by 2015.
However, the policy has sparked intense debate, particularly over the technical thresholds it imposes. For instance, the regulations specify that new photovoltaic manufacturing projects must meet minimum efficiency standards: single-crystal silicon cells should have at least 20% efficiency, polycrystalline cells 18%, and thin-film cells 12%. Additionally, polysilicon production must consume no more than 100 kWh/kg.
While these measures are intended to improve quality and efficiency, many in the industry argue the standards are too high and could unfairly eliminate smaller or less-equipped companies. Others, however, support the move, believing it will drive innovation and streamline the supply chain.
The key issue remains how these thresholds will be monitored and enforced. According to Wang Sicheng, director of the Renewable Energy Society, there are several certified testing agencies in China, such as the China Quality Certification Center (CQC) and Beijing Jianheng Certification Center (CGC), which are recognized by the government. These institutions already offer testing services for cell efficiency, suggesting that the technical challenges are manageable.
Despite this, industry insiders remain skeptical. A representative from the Certification and Certification Center told reporters that while they have the technical capability to test efficiency, they haven’t yet received guidance on how to implement the new policy. Meanwhile, industry leaders like Liu Yong, CTO of JA Solar, pointed out that no single certification body has universal industry approval.
TUV Rheinland, one of the world's largest PV testing agencies, also expressed concerns. A TUV employee noted that the current focus on cell efficiency may not be comprehensive enough. He explained that there are two types of efficiency—full-size and effective area—and that some companies might exploit this distinction. He also suggested that shifting the focus to module-level efficiency could be more practical and effective.
Liu Yong further emphasized that overcapacity is a real issue, but he believes the solution lies in tightening the bidding process. By setting clear efficiency thresholds during project tenders, substandard products would naturally be excluded.
Meanwhile, Artes Technology’s vice president argued that the true measure of success in the market is the cost per kilowatt-hour, not just efficiency metrics.
Wang Sicheng acknowledged that while the threshold for thin-film technology seems high, the crystal silicon standards are generally reasonable. However, the industry remains divided, with many companies feeling the targets are unrealistic and unachievable with current technology.
According to industry analysts, most monocrystalline cells currently on the market operate between 16% and 18% efficiency, while only a few polycrystalline cells reach above 18%. Even those that do often suffer from instability and high costs, making them uncompetitive in the market.
A TUV insider warned that the high thresholds in the policy could be misused. Some companies might produce low-efficiency cells but boost module performance through advanced processes, while others may have high cell efficiency but lower module efficiency. Focusing solely on cell efficiency could lead to the unintended elimination of legitimate players.
Overall, while the policy aims to promote healthy growth, its implementation remains uncertain, and the debate over standards and enforcement continues to shape the future of China’s photovoltaic industry.
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