China tightens rules for solar PV manufacturing

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China tightens rules for solar PV manufacturing

China tightens rules for solar PV manufacturing

Industry News
Jul 16,24

It increases the minimum capital ratio required for new construction and expansions in the photovoltaic sector to 30%, up from previous requirements of 30% for polysilicon projects and 20% for other PV manufacturing projects.

China tightens rules for solar PV manufacturing

On July 11, 2024, China’s Ministry of Industry and Information Technology (MIIT) proposed revisions to the ‘Photovoltaic Manufacturing Industry Normative Conditions’ policy, aimed at tightening regulations to address market overcapacity and promote efficient technologies and products.

The revised policy covers all segments of PV manufacturing, including polysilicon, ingots, wafers, solar cells, modules, and inverters. Key provisions include criteria for investment ratios, production layout, technological processes, energy efficiency, resource utilisation, smart and green manufacturing, environmental protection, quality management, intellectual property protection, and occupational safety.

Originally issued in 2013 with subsequent updates in 2015, 2018, and 2021, the latest revision introduces several significant changes. Notably, it increases the minimum capital ratio required for new construction and expansions in the photovoltaic sector to 30%, up from previous requirements of 30% for polysilicon projects and 20% for other PV manufacturing projects. This adjustment aims to restrain investment impulses, reduce corporate debt, and optimize financial leverage.

Moreover, the updated standards raise efficiency benchmarks for solar cells and modules. For instance, the minimum photoelectric conversion efficiencies are now set at 21.4% for multicrystalline silicon cells, 23.2% for p-type monocrystalline silicon cells, and 25% for n-type monocrystalline silicon cells. Efficiency requirements for modules have also been elevated to ensure performance levels meet or exceed specified standards.

Additionally, the revised document imposes stricter criteria for degradation rates of photovoltaic modules and electricity consumption levels throughout production stages. It mandates lower energy consumption targets and higher water recycling rates, aiming to phase out outdated production capacities and enhance environmental sustainability within the PV industry.

These updates highlight China’s proactive measures to streamline PV manufacturing operations, enhance product quality, and align with global sustainability goals, signalling a pivotal shift towards more stringent regulatory frameworks in the sector.

(Source: PV magazine India)