--- title: "The end of \"involution\" in photovoltaics is here! Three national standards have been implemented, and the industry is shifting from \"competing in scale\" to \"competing in energy efficiency.\"" type: "News" locale: "en" url: "https://longbridge.com/en/news/291673965.md" description: "The Ministry of Industry and Information Technology and two other departments have released three mandatory national standards for photovoltaic energy consumption and efficiency, setting hard thresholds for polysilicon, silicon wafers, and modules. This move aims to force the exit of backward production capacity and promote the industry's transition from scale competition to high-quality development focused on energy efficiency. Although the implementation of the standards marks the entry into a hard constraint era for governance, it will still take time to test the industry's recovery from the low point in the context of overcapacity" datetime: "2026-07-03T12:15:10.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/291673965.md) - [en](https://longbridge.com/en/news/291673965.md) - [zh-HK](https://longbridge.com/zh-HK/news/291673965.md) generator: "portal-rs" --- # The end of "involution" in photovoltaics is here! Three national standards have been implemented, and the industry is shifting from "competing in scale" to "competing in energy efficiency." After several years of rapid expansion, the photovoltaic industry, which is mired in overcapacity and price wars, has welcomed the most binding policy since the "anti-involution" movement. On July 2, the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the State Administration for Market Regulation jointly issued three mandatory national standards for photovoltaic energy consumption and efficiency. These standards set "hard thresholds" for energy consumption and efficiency at key links in the industry chain, from polysilicon and silicon wafers to modules and inverters, sending a clear signal to force the exit of backward production capacity and promote the industry's shift from scale expansion to high-quality development. However, against the backdrop of the industry still being in a deep clearing phase and the supply-demand imbalance not fundamentally reversed, whether the new standards can accelerate the photovoltaic industry out of the trough remains to be further tested by the market. **National Standards Implemented, Photovoltaic "Anti-involution" Enters Hard Constraint Era** On July 2, the Ministry of Industry and Information Technology, in conjunction with the National Development and Reform Commission and the State Administration for Market Regulation, released three mandatory national standards: "Energy Consumption Limits for Monocrystalline Silicon Unit Products," "Energy Efficiency Limits and Energy Efficiency Levels for Crystalline Silicon Photovoltaic Modules and Inverters," and "Energy Consumption Limits for Polysilicon and Germanium Unit Products." These standards cover key links in the photovoltaic industry chain, including polysilicon, silicon wafers, modules, and inverters, setting energy consumption and efficiency indicators for related products by grade, strictly controlling high-energy-consuming and low-efficiency production capacity at each link. For modules, innovative coupling environmental stress decay rate evaluation indicators have been included. On July 3, a relevant person in charge of the China Photovoltaic Industry Association stated to the media that the mandatory safety standards and energy efficiency standards for photovoltaic modules are conducive to regulating the competitive order of the photovoltaic industry and promoting industrial upgrading and development. A research report from United Credit Ratings pointed out that the release of these three mandatory national standards marks a shift in China's photovoltaic industry governance from merely pursuing scale expansion to fine-tuning management across the entire chain. In the past, photovoltaics were often broadly viewed as clean energy, but the upstream manufacturing links actually exhibit high energy consumption characteristics. This standard directly targets high-energy-consuming nodes such as silicon materials and silicon wafers by setting energy consumption limits and innovatively includes module decay rate evaluation, essentially placing "green access" at the production source. This measure accelerates the elimination of backward production capacity through rigid constraints, prompting enterprises to shift from high-energy-consuming, low-price homogeneous competition to technological upgrades with low energy consumption and high conversion efficiency. **Overcapacity Still Needs to Be Digested, Industry Clearing Requires Time** However, on July 3, the overall performance of the A-share photovoltaic sector was relatively calm. Some companies told Beike Finance reporters that the overall capacity adjustment in the photovoltaic industry still requires time to complete. Beike Finance reporters noted that the annual reports of several leading photovoltaic companies show that the capacity utilization rate of enterprises is generally low in 2025, with many companies in the module segment having a capacity utilization rate of around 60%. 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