Views: 0 Author: Site Editor Publish Time: 2026-07-28 Origin: Site
China’s photovoltaic (PV) industry is entering a new stage of development as policymakers and industry leaders call for an end to excessive price competition and a stronger focus on quality, innovation, and long-term value.
Gao Jifan, Chairman of Trina Solar and Director of the National Key Laboratory of Photovoltaic Science and Technology, recently highlighted that years of uncontrolled price cutting have created serious challenges for companies, the industry ecosystem, and end users.
The PV manufacturing sector is highly capital-intensive, requiring continuous investment in equipment, technology, and quality control. However, prolonged low-price competition has pushed many companies into financial difficulties.
Some manufacturers have reduced costs by lowering material standards, cutting R&D investment, or weakening quality management. This not only threatens product reliability but also affects the competitiveness of China’s PV industry.
Even leading companies with strong technology capabilities have been pressured by the price war, resulting in declining profitability across the industry.
The introduction of the “General Rules for PV Industry Cost Accounting Models” is expected to provide clearer cost benchmarks and discourage irrational low-price competition.
By improving cost transparency, the new standard can help the market identify unsustainable pricing, accelerate the exit of inefficient capacity, and encourage companies to compete through technology, quality, and service rather than simply lower prices.
The impact of price wars extends beyond manufacturers. For customers, extremely low module prices may appear attractive, but solar projects are long-term assets designed to operate for 25 years or more.
Product reliability, energy output, warranty services, and long-term maintenance are more important than the initial purchase price. Companies struggling with losses may reduce after-sales support or quality investment, creating potential risks for end users.
A healthier profit environment allows manufacturers to use better materials, strengthen quality control, improve testing standards, and build reliable service networks.
China’s solar industry has become a global leader through technological innovation, manufacturing scale, and a complete supply chain. However, sustainable growth requires moving beyond price-driven competition.
The new cost accounting standard represents a shift from “price competition” to “value competition.”
By creating a fairer market environment, the PV industry can restore innovation momentum, improve product quality, and continue playing a leading role in the global renewable energy transition.
