Q1 2025 Photovoltaic Industry Policy and Standards White Paper

Date: May 2, 2025

I. Policy Framework and Core Objectives

National Level Carbon Neutrality Goals: The focus is on enhancing photovoltaic (PV) technology as a primary source of new energy through large-scale equipment updates, green certificate systems, and pilot projects for carbon peaking. The aim is to achieve a 20% share of non-fossil energy by 2025.

Market Reform: New energy sources will be fully integrated into the electricity market, with a clear distinction between existing and new projects (effective June 1, 2025), stabilizing revenue expectations and accelerating the process of grid parity.

Technology Direction: There is an emphasis on encouraging high-end, intelligent equipment applications, supporting demonstrations of new technologies like perovskite, and promoting the synergistic development of PV, energy storage, and hydrogen energy.

II. Key Policy Highlights

Distributed PV Management: Large-scale commercial distributed PV systems will prioritize self-consumption, with surplus electricity entering the market in conjunction with the spot market (e.g., in Guangdong and Anhui).

Streamlined Registration: Many regions have removed preconditions such as site planning and environmental assessments, while enhancing aesthetic controls (e.g., in Zhejiang and Beijing).

Grid Capacity Alerts: Dynamic announcements of available grid capacity (e.g., in Jiangsu and Sichuan) will guide orderly development and prevent chaotic competition.

Green Certificates and Carbon Market Linkage: The national data center’s green electricity consumption exceeds 80%, promoting the integration of green certificate accounting with carbon footprint management.

International Alignment: The Ministry of Commerce has issued requirements for low-carbon evaluation of PV module exports to address EU carbon tariff barriers and enhance export competitiveness.

III. Challenges and Risks

Integration Bottlenecks: In regions such as Henan and Hunan, the suspension of distributed PV registrations highlights the lag in distribution network upgrades. Accelerated energy storage deployment is needed (e.g., Guangdong mandates 10% storage for projects over 30 MW).

Delayed Construction of Transmission Channels: The slow development of external transmission pathways in the northwest restricts the progress of base project commissioning.

Concerns Over Local Protectionism: Some cities have designated specific developers (e.g., in Zhenping, Henan), potentially fostering monopolies. Enhanced regulations are necessary to ensure fair competition.

Revenue Uncertainty: The push for marketization in electricity (e.g., Shandong requires all new projects to enter the market) may lead to price volatility affecting project yields, necessitating financial tools to mitigate risks.

IV. Future Trends and Recommendations

Market Dynamics: A balanced approach between centralized and decentralized projects is anticipated, with northern regions focusing on base projects and the central-eastern regions emphasizing county-wide initiatives and commercial distributed systems.

Cross-Sector Integration: New growth points are emerging from synergies such as PV plus agriculture (agrivoltaics) and PV plus transportation (solar highways).

Corporate Strategic Directions: Companies are encouraged to lead in technologies such as perovskite and heterojunction to capture the BIPV (Building-Integrated Photovoltaics) market. Collaboration with grid and storage companies is vital to participate in integrated projects, enhancing grid absorption capacity.

International Strategies: Leveraging domestic cost advantages to expand into emerging markets in Southeast Asia and the Middle East while avoiding trade barriers is recommended.

Policy Recommendations: Strengthen investments in grid infrastructure, promote the construction of ultra-high-voltage and smart distribution networks, and clarify mechanisms for sharing energy storage costs. A unified standards system should be expedited to reduce local policy fragmentation regarding grid safety and carbon footprint accounting.

V. Conclusion

The photovoltaic policies for 2025 are centered on “stabilizing scale, enhancing quality, and promoting integration.” Through market mechanisms and technological innovation, the industry aims to transition from rapid growth to high-quality development. Companies must seize opportunities in technological advancement and diverse applications while navigating integration challenges and policy risks to achieve sustainable growth.