The photovoltaic industry, which has been showing signs of recovery following a series of positive policy signals from the government, now faces a critical question: will it once again fall into the trap of overcapacity due to reckless investment? Will small enterprises with outdated technology and low production efficiency be able to survive or even thrive in this environment? As the market remains uncertain, how can PV companies effectively manage risks and ensure long-term sustainability? These are pressing issues that deserve careful consideration and proactive measures.
"The integration of production capacity through mergers and acquisitions is essential for the industry's development," said Wu Dacheng. "We must avoid blindly expanding capacity just for short-term profits." From a market perspective, after two rounds of fluctuations, investment should become more rational and strategic. The government should focus on guiding rather than directly intervening.
Notably, the policy framework seems to have anticipated these challenges. The newly issued "Regulations for Photovoltaic Manufacturing Industry" by the Ministry of Industry and Information Technology clearly states that enterprises and projects failing to meet certain standards will no longer be eligible for policy support such as export tax rebates or domestic application incentives. This move aims to promote quality over quantity and encourage sustainable growth.
Liu Hanyuan believes that staged overcapacity is not necessarily a bad thing. "It's one of the characteristics of a market economy," he explained. "It creates pressure and drives innovation among producers, meets consumer demands, and helps reduce costs while increasing efficiency." According to Liu, the key takeaway from the Third Plenary Session of the 18th Central Committee was the recognition of the market's central role in resource allocation and economic development. He emphasized that the government should not overstep but instead respect market rules and let natural forces shape the industry's evolution.
Distributed photovoltaic power generation, which is gaining popularity in the market, also comes with its own set of challenges. While the subsidy policy has been established, practical implementation still raises several concerns. Who will take the lead in building these systems? The construction of photovoltaic power plants requires significant capital and has a long payback period, making the choice of investors and their financial stability crucial. How will the electricity be sold? Although distributed systems are mostly self-sufficient, surplus energy is still managed by the grid. Policies need to ensure that all generated electricity is fully purchased. Additionally, the timely disbursement of subsidies remains a concern. In the early stages of large-scale ground-mounted solar farms, there were reports of delayed payments, and it remains to be seen whether similar issues will affect distributed systems. Addressing these problems is essential for the long-term success of the sector.
Hebei Yuanyue Trading Co.,Ltd , https://www.hbyuanyue.com