How the PV Industry Breaks the Involution

The recently held "2025 Photovoltaic Industry Annual Conference" focused on the strategy of "internal competition" to jointly break through the situation, and released the "Photovoltaic Standard Application Implementation and Supply Chain Quality Ecological Co construction Initiative", sending a strong signal to solve industry pain points through institutional construction, rule unification, and behavioral norms.

As a shining business card of "Made in China", China's photovoltaic industry has long been leading the world in terms of scale, technology, and application. As of the end of November 2025, the installed capacity of solar power generation in China has reached 1.16 billion kilowatts, a year-on-year increase of 41.9%. Behind this transcript lies the years of deep cultivation and breakthroughs of photovoltaic professionals in China. It should also be noted that while expanding rapidly, problems such as temporary supply-demand imbalance and disorderly competition at low prices have gradually become prominent, and the industry has once been caught in a "price war" dilemma, conveying the urgent need for the transformation and upgrading of the photovoltaic industry.

Rectifying the "internal competition" in the photovoltaic industry is a key lever for cultivating new quality productivity and consolidating global competitive advantages. The root cause of 'involution' lies in the misalignment of development logic - from competing for technology and innovation to competing for price and scale. To eradicate this' root cause ', the key is to reverse the development logic, implement differentiated policies based on the characteristics of different links in the industrial chain, and find a path of supply and demand coordination and precise policy implementation.

On the supply side, we need to highlight the wisdom of implementing classified policies. For the rapidly iterating battery process, a technology grading mechanism should be established with conversion efficiency as the core to open up a green channel for advanced production capacity. For mature processes such as silicon materials and wafers, energy consumption and environmental protection should be used as benchmarks to resolutely eliminate outdated production capacity. For the component stage, efforts should be made to rectify sales behavior below cost price, in order to strictly regulate and standardize market order. Only by making high-quality production capacity popular and outdated production capacity obsolete can industrial development return to the track of innovation driven development.

On the demand side, we need to build a solid foundation for stable expectations. In the domestic market, central state-owned enterprises should be encouraged to shoulder their responsibilities, accelerate the implementation of major projects such as "Shage Huang" and photovoltaic desertification control, and stabilize the development foundation. The hard requirement of 'not connecting to the grid if the conversion efficiency of components does not meet the standard' is used to force industrial technology upgrading. We also need to optimize the bidding rules, reduce the weight of prices, and establish a clear orientation of "high quality and good price". In the overseas market, it is necessary to curb the disorderly export of low-quality and low-priced products through differentiated tax rebates and other means, guide enterprises to deeply cultivate emerging markets such as the Middle East and Latin America, and polish the golden signboard of "Chinese photovoltaics" with technology output and localized manufacturing.

The confidence of policy protection is becoming increasingly solid. Recently, the National Development and Reform Commission and the National Energy Administration jointly issued the "Guiding Opinions on Promoting the Consumption and Regulation of New Energy", constructing a systematic framework for the coordinated efforts of origin, network, and load, market driven, and innovation driven. Under the guidance of policies, industry self-discipline, and the efforts of enterprises, a breakthrough action is being comprehensively promoted with technological innovation as the engine, rule reshaping as the guarantee, and ecological co construction as the path. Saying goodbye to low-level 'internal competition' and moving towards high-quality development, China's photovoltaic industry will continue to build new competitive advantages in the global energy transformation wave.