[Insight] Interpretation of the September 2025 Photovoltaic(PV) Policies: Industry Transformation and Opportunities

In September 2025, the photovoltaic (PV) industry ushered in a series of new policies, with adjustments at both national and local levels creating ripples like a stone cast into a calm lake, profoundly shaping the industry's trajectory. These policies are not coincidental but emerge in the context of accelerating global energy transitions and new challenges and opportunities facing China's PV industry.

I. Background of Intensive Policy Rollouts

In recent years, global demand for clean energy has surged, with PV, as a key component of renewable energy, experiencing rapid growth. However, as China's PV industry expands swiftly, several issues have surfaced. On one hand, overcapacity has become increasingly prominent, with numerous companies entering the market, intensifying competition and sparking price wars that severely compress profit margins. Data shows that since 2024, due to declining prices across the supply chain, total revenue of listed PV companies has dropped. According to statistics, 70 companies under the Shenwan Industry Classification "Photovoltaic Equipment" (covering the entire PV manufacturing chain) achieved a combined operating revenue of 408.599 billion yuan in the first half of 2025, a year-on-year decrease of 12.90%. On the other hand, as PV installation scales expand, grid absorption issues have become a bottleneck, with negative electricity prices during PV generation periods in some regions severely impacting project profitability.

Against this backdrop, the government introduced new policies to guide the industry's healthy development, optimize its structure, and enhance overall competitiveness. Through policy regulation, the aim is to phase out outdated capacity, curb disorderly low-price competition, standardize product quality, and promote industry self-discipline, creating a favorable policy environment for sustainable PV development.

II. Overview of Key PV Policies in September

National-Level Policy Directions

1. "Action Plan for Stable Growth in the Electronic Information Manufacturing Industry 2025–2026": On September 4, the Ministry of Industry and Information Technology and the State Administration for Market Regulation issued this plan, setting clear targets for 2025–2026. It aims for an average annual value-added growth rate of around 7% for enterprises above designated size in the computer, communications, and other electronic equipment manufacturing sectors. Including lithium batteries, PV, and components manufacturing, the electronic information industry is expected to achieve an average annual revenue growth rate of over 5%. The plan emphasizes achieving high-quality development in PV and other sectors by addressing "involution-style" competition, tackling low-price competition legally, guiding local governments to plan PV and lithium battery industries rationally, and reviewing capacity conditions. It also enforces quality management for PV modules and lithium batteries, implements the "Photovoltaic Manufacturing Industry Specification Conditions," and strengthens coordination with investment, financial, and safety policies to drive technological progress.

   
   

2. "Notice on Improving Price Mechanisms to Promote Local Consumption of New Energy Power": Issued by the National Development and Reform Commission and the National Energy Administration, this notice, effective from October 1, encourages enterprises to build PV and wind power facilities for self-consumption, reducing reliance on the main grid. It mandates that self-generated and self-consumed renewable energy must account for over 60% of total generation and 30% of total electricity consumption annually, with the latter rising to 35% for new projects by 2030. Detailed regulations on grid access and electricity cost calculations aim to lower enterprise electricity costs and enhance renewable energy utilization efficiency.

Local-Level Policy Highlights

1. Shandong Province New Energy Mechanism Electricity Price Bidding: On September 11, Shandong announced the results of its 2025 new energy mechanism electricity price bidding, becoming the first province to publish provincial-level mechanism electricity prices. The PV bidding result of 0.225 yuan/kWh drew significant attention. The bidding included wind and PV projects, with a total mechanism electricity volume of 9.467 billion kWh, comprising 8.173 billion kWh for wind and 1.294 billion kWh for PV. For PV, 1,175 projects were selected, including centralized and distributed PV, with a total installed capacity of 1,265.5 MW. The mechanism electricity price of 0.225 yuan/kWh is 43% lower than the coal-fired benchmark price of 0.3949 yuan/kWh. This price sets a significant precedent for Shandong and the national PV market, marking the full arrival of the PV parity era.

2. Hainan Province PV Land Use Policy: On August 18, five departments in Hainan jointly issued the "Notice on Standardizing Land Use Filing Management for Photovoltaic Power Generation Projects (Trial)," effective from September 11. This notice clarifies regulations on PV project site selection, land use management, and filing procedures. It prohibits PV projects in areas such as farmland, ecological protection redlines, permanent basic farmland, Class I protected forest land, public welfare forests, and natural forest land. Distinct rules were set for PV arrays and supporting facilities, with filing procedures divided into four steps: drafting plans, signing agreements, submitting materials, and recording information. Solutions for legacy projects were also provided, ensuring standardized development of PV projects in Hainan.

   
   

III. Impact Analysis of New Policies on the PV Industry

Reshaping the Industry Landscape

1. Accelerated Elimination of Outdated Capacity: Policies addressing low-price competition and strengthening capacity regulation will phase out enterprises with outdated technology and high costs, improving resource allocation efficiency and enabling competitive enterprises to thrive in a healthier market environment.

   
   

2. Increased Industry Concentration: As outdated capacity exits, market share will shift toward leading enterprises. These companies, with advantages in R&D, brand influence, and cost control, will gain a stronger market position. Higher industry concentration will drive technological advancements and innovation, pushing the PV industry toward higher-quality development.

   
   

Impact on Enterprise Operations

1. Short-Term Challenges and Pressures: In the short term, enterprises may face pressure to adjust strategies. Those relying on low-price competition will find their models unsustainable, requiring increased R&D investment and improvements in product quality and technology to adapt to market changes. Capacity regulation may also lead to reduced production, asset idleness, and workforce adjustments.

   
   

2. Long-Term Opportunities and Development: In the long term, the policies offer new growth opportunities. A more regulated competitive environment will encourage enterprises to focus on technological innovation and quality improvement. Support for R&D in N-type and perovskite technologies will drive industry upgrades, while export policies will facilitate global market expansion.

Impact on Market Prices

1. Curbing Disorderly Price Declines: Previously, intense competition led some enterprises to engage in low-price dumping, causing continuous price drops. Policies curbing disorderly competition will stabilize market prices, ensuring reasonable profit margins and reducing excessive price volatility.

   
   

2. Return to Rational Price Ranges: As the industry becomes more standardized, PV product prices will return to rational levels. This will support sustainable enterprise development and stabilize investment returns for PV projects, attracting more social capital to the industry.

   
   

IV. Industry Response Strategies and Outlook

Enterprise Response Strategies

1. Increase Investment in Technological Innovation: Enterprises should boost R&D in N-type, perovskite, and other advanced technologies to improve conversion efficiency, performance, and cost-effectiveness, enhancing product value and market competitiveness.

   
   

2. Optimize Global Supply Chain Layout: Enterprises should respond to policy incentives by transitioning to overseas manufacturing and EPC exports, breaking trade barriers, exploring new markets, and reducing reliance on the domestic market.

   
   

3. Strengthen Industry Self-Discipline: Enterprises should participate in industry association-led self-regulation activities, uphold industry standards, and avoid low-price competition and false marketing to build a positive corporate image.

   
   

Industry Development Outlook

1. Optimized and Upgraded Industry Structure: Guided by new policies, the PV industry will accelerate the elimination of outdated capacity, achieving structural optimization. The focus will shift toward technological innovation and quality improvement, driving the industry toward high-end and intelligent development.

   
   

2. Continued Market Expansion: With global energy transitions accelerating and domestic policies supporting renewables, the PV market is expected to grow further. Projects like desert, Gobi, and wasteland renewable energy bases and integrated wind-PV-hydro projects will create new domestic opportunities, while PV exports will expand, offering broader growth prospects.

   
   

3. Full Arrival of the Parity Era: Shandong’s bidding results signal the comprehensive arrival of the PV parity era, prompting further cost reductions and efficiency improvements, increasing PV’s share in the energy mix and contributing to carbon peak and neutrality goals.

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The September 2025 PV policies mark a pivotal turning point in the industry’s development. While presenting short-term challenges, these policies lay a solid foundation for sustainable growth. Enterprises should align with policy directions, intensify technological innovation, and expand market presence to drive the PV industry into a new phase of development. For cutting-edge solutions and insights to navigate this evolving landscape, explore Kada Energy, where innovative energy solutions empower a sustainable future.

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