![As the Chinese solar PV manufacturing industry continues its expansion spree, the Chinese government has decided to guide the industry away from going overboard, thus contributing to overcapacity. (Illustrative Photo; Photo Credit: humphery/Shutterstock.com)](http://media.assettype.com/taiyangnews%2Fimport%2Fwp-content%2Fuploads%2F2024%2F07%2FPresentation1-11.jpg?w=480&auto=format%2Ccompress&fit=max)
The Ministry of Industry and Information Technology (MIIT) in China has launched a public consultation to limit solar PV manufacturing expansion spree in the world's largest PV market as the industry suffers the effects of oversupply.
The overcapacity of PV components is leading to a drastic drop in prices with ensuing competition negatively impacting the fortunes of PV manufacturers. Several companies, including tier I, have reportedly scaled back or terminated their expansion plans. Trina Solar recently terminated plans to raise funds for its PV expansion, while JA Solar expects to report H1/2024 loss owing to these reasons (see China Solar PV News Snippets).
The ministry is attempting to encourage technological progress, standardized and healthy development in the industry, while curbing excessive and repetitive manufacturing capacity expansion.
Additionally, the MIIT document proposes the minimum capital ratio for new and expanded PV manufacturing projects, barring polysilicon, to increase from 20% to 30%.
For existing monocrystalline silicon solar cells and module facilities, the average efficiency desired should be a minimum of 23.2% for p-type cells and 21.2% for solar modules. For n-type, the efficiency shouldn't be less than 25% and 22.3%, respectively.
In the case of newly built, or expanded monocrystalline silicon solar cells and modules, p-type cells and modules should have a minimum efficiency of 23.7% and 21.8%, respectively. As for n-type, the minimum efficiencies shouldn't be less than 26% for cells and 23.1% for modules.
CIGS, CdTe, and other thin-film modules will be required to have an average PV conversion efficiencies of no less than 16%, 16.5% and 15%, respectively.
Further, the degradation rates for p-type crystalline silicon modules should not exceed 2% in the 1st year, 0.55%/year afterwards, and 15% over 25 years.
The degradation rates for n-type crystalline silicon modules should not exceed 1%/year, 0.4%/year post that, and 11% over 25 years. For thin-film modules, it shouldn't exceed 4% in the 1st year, 0.4%/year afterwards, and 14% over 25 years.
It also sets a limit on the spending on research and development.
The guidelines will apply to the entire solar PV value chain, from polysilicon, silicon rods, silicon ingots, silicon wafers, batteries, modules, inverters, among others.
Launched on July 9, 2024, the consultation document on MIIT's website will be available for feedback till July 15, 2024.