Solar policy shift set to shake up industry

"Countries are importing solar panels at record levels and building up their own domestic assembly and manufacturing capabilities to address surging global demand," said Euan Graham, a senior analyst at energy think tank Ember.

Beyond the sheer volume of shipments, China is also moving up the global value chain by exporting more advanced, high-tech solar components.

Chen from SMM points out that while fully assembled modules remain the primary export, accounting for 67 percent of the total, shipments of higher-value solar cells have become the fastest-growing segment, and now comprise 18 percent. Wafers and polysilicon account for 9 percent and 4 percent, respectively.

The geographic footprint of China's exports is also transforming. While traditional markets like the United States and Europe see varying degrees of stabilization, emerging markets have become the primary engines of mid-to-long-term growth, he said.

Exports to the Association of Southeast Asian Nations have grown by 29.4 percent, while shipments to Africa have surged by nearly 50 percent, illustrating a rapidly expanding global market share in the Global South.

According to Chen, for overseas end-users, the policy shift presents a scenario of short-term cost fluctuations, but profound long-term benefits.

While procurement costs may see a slight, temporary rise, the market's return to rationality guarantees that international buyers will receive vastly improved product stability, technological quality, and comprehensive after-sales service, hence avoiding the hidden operational risks inherent in ultra-cheap, low-tier equipment, he said.

This drive to eliminate low-end overcapacity and prioritize high-quality exports mirrors a broader, systemic pivot within China's domestic green energy strategy.

Having already established the world's most extensive renewable energy supply chain, Beijing is systematically transitioning from a phase of explosive capacity expansion to one focused on efficient integration and actual energy utilization.

In tandem with upgrading the quality of its global offerings, the authorities are taking decisive steps at home to address rising curtailment rates — where clean power is wasted because local grids cannot absorb the rapid influx of wind and solar generation. To break this domestic bottleneck and ensure the green energy produced is actually used, policymakers are turning their attention to the demand side.

China has laid out broad new rules that mandate increased use of renewables as it continues to shift the focus of its energy transition from building new generation to ensuring it gets consumed.

Starting Aug 1, the government will implement binding targets for renewable energy consumption. This marks a strategic shift in China's energy transition — moving away from the massive capacity expansion seen in recent years toward combating power curtailment and ensuring clean electricity is actually utilized.

Under the new rules, regions and companies will face strict quarterly monitoring and annual evaluations. Those failing to meet their clean energy quotas will be required to purchase green electricity certificates, a move expected to boost revenue for solar and wind farms.

The mandate also covers nonelectric energy uses, such as heating and green fuels, which are poised to spur demand for critical emerging sectors like green hydrogen.

This domestic push for system integration and higher energy utilization aligns perfectly with what Chinese enterprises are now offering their global customers: comprehensive, high-value solutions rather than just raw components.

"Today, solar energy has become an affordable and clean power source for many parts of Africa, allowing local people to access electricity and live better lives," said Zhong Baoshen, chairman of Longi Green Energy Technology, a leading Chinese PV manufacturer.

Showcasing this shift toward advanced applications, Longi recently dispatched a massive 30-megawatt-hour energy storage system to the African continent. This shipment marks a substantial breakthrough for the company's "solar-plus-storage microgrid" solution, a highly specialized system meticulously designed for the demanding environments of remote African mining operations.

These advanced overseas deployments build upon a remarkable track record. Over the past decade, by commanding more than 80 percent of global PV manufacturing capacity and leveraging unparalleled full-chain technological advantages, China's solar sector has miraculously driven the levelized cost of global solar electricity down by over 80 percent.

Today, as the export tax rebate policy officially concludes, it forces the entire domestic sector to permanently abandon low-end price wars, said Lin.

By redirecting its immense capabilities toward relentless technological innovation, advanced product iteration, and localized service optimization, China is nurturing a new generation of globally competitive, premium clean energy brands, he said.

zhengxin@chinadaily.com.cn