On July 15, the Chinese State Council released its "Several Opinions on Promoting the Healthy Development of the Photovoltaic Industry," a policy seen as a major boost for the domestic solar sector. The document aims to reduce the industry's reliance on foreign markets and accelerate the growth of the local photovoltaic market. It sets targets for an average of 10 GW of new installations annually from 2013 to 2015, with a total installed capacity of 35 GW by 2015.
However, the policy also addresses the issue of overcapacity in the industry. It introduces specific technical thresholds for new manufacturing projects, including minimum conversion efficiencies for different types of solar cells. For example, monocrystalline silicon cells must have at least 20% efficiency, polycrystalline cells 18%, and thin-film cells 12%. Additionally, polysilicon production must consume no more than 100 kWh per kilogram.
This policy has sparked heated debate within the industry. Some companies argue that the standards are too high and may unfairly eliminate many smaller firms, while others believe these thresholds are necessary to promote technological advancement and improve the overall quality of the supply chain.
A key challenge lies in how these standards will be monitored and enforced. While there are several certification bodies in China, such as the China Quality Certification Center (CQC) and the Beijing Jianheng Certification Center (CGC), there is still uncertainty about which organization will be responsible for testing and ensuring compliance with the new rules.
According to Wang Sicheng, director of the Renewable Energy Society, the technical capability to test cell efficiency already exists. However, the implementation of the policy remains unclear, with many organizations still unsure of their roles.
Industry insiders have raised concerns about the reliability of current testing procedures. For instance, some companies do not recognize the results from existing monitoring centers, citing a lack of consensus or standardization. JA Solar’s CTO, Liu Yong, noted that no single certification body has gained universal acceptance among industry players.
TUV Rheinland, one of the world’s leading PV testing agencies, pointed out that the policy’s focus on cell efficiency might not be comprehensive enough. They highlighted the difference between full-size and effective area efficiency, warning that companies could exploit this gap to meet the threshold without actually improving real-world performance.
Liu Yong also emphasized that addressing overcapacity should start at the project tendering stage, where strict quality criteria can naturally eliminate substandard products. Meanwhile, Artes Technology’s vice president argued that the most important metric is the cost per kilowatt-hour, suggesting that other thresholds may be overly complex or misleading.
Despite these concerns, Wang Sicheng acknowledged that the thresholds for crystalline silicon are reasonable, though the 12% requirement for thin-film technology has caused significant controversy. According to industry analysts, most monocrystalline cells currently on the market have efficiencies between 16% and 18%, and even some quasi-monocrystalline polycrystalline cells struggle to exceed 18%. These products often come with stability issues and higher costs, making them less competitive in the market.
An insider at TUV warned that the current threshold could be misused by certain companies. Some may achieve high cell efficiency but fail to maintain it when assembling modules, while others might rely on process improvements to boost module efficiency despite lower cell performance. This could lead to unintended consequences, such as the elimination of legitimate players who don’t meet the strict cell efficiency criteria.
As the industry continues to grapple with these challenges, the success of the policy will depend on clear guidelines, reliable testing, and a balanced approach that fosters innovation without stifling growth.
Jiangsu Jiajie Special Screw Co., Ltd , https://www.jiajiescrewcompany.com