pv magazine spoke with two OPIS analysts about China’s new mandatory energy consumption and efficiency standards for the solar sector, which aim to address overcapacity but are unlikely to resolve supply-demand imbalances alone. They said the measures could accelerate the phaseout of outdated capacity and support higher-quality manufacturing, but their impact on operating capacity, module prices and industry consolidation is expected to remain limited in the near term.
In early July, the Chinese government announced three mandatory national standards for energy consumption and energy efficiency in the photovoltaic sector, establishing a new compliance framework covering polysilicon, silicon wafers, PV modules and inverters.
The rules, which will take effect on Jan. 1, 2027, are expected to reshape manufacturing, procurement and project selection by favoring higher-efficiency, lower-energy-intensity products. However, market participants remain divided over whether the new standards will effectively reduce overcapacity and support a more sustainable pricing environment.
According to Summer Zhang, senior analyst for solar supply chain at OPIS, a Dow Jones company, industry stakeholders generally expect the standards to accelerate the phaseout of outdated production capacity and help ease the solar industry’s prolonged oversupply. Some industry estimates suggest that up to 30% of existing capacity could eventually be affected.
