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In a recent interview with China Power News, Li Meicheng, Deputy Dean of the School of Renewable Energy at North China Electric Power University, shared his insights on the current challenges facing the photovoltaic (PV) industry. He emphasized that while the sector is experiencing a "cold winter," it also presents an opportunity for deeper reflection and transformation.
Li Meicheng pointed out that overcapacity is merely a surface-level issue. He highlighted that in 2010, six Chinese companies ranked among the top ten globally in PV components, and by 2011, this number had increased to eight. "This ranking clearly demonstrates the strength of our domestic PV industry on the global stage," he said. However, the real cause of the industry's difficulties lies elsewhere.
According to Li, two main factors are contributing to the downturn: a sluggish global economy and rising trade protectionism. "Most of our products are exported, and trade barriers have significantly impacted our overseas sales," he explained. When international markets face disruptions, the industry suffers, leading to the perception of overproduction. "But in reality, there are still many technology-driven companies that are thriving," he added, citing Japan’s Sanyo as an example. "Their HIT battery technology is unmatched, and they hold strong intellectual property rights—no one can replicate their success."
Li also noted that many Chinese PV companies produce similar crystal silicon products, which lack differentiation and innovation. "It’s like blocking one road and shutting down all options," he said. This highlights the urgent need for technological advancement and R&D investment.
In terms of solutions, Li Meicheng suggested that under the support of government policies, the industry should focus on distributed applications and integrate PV technology with traditional energy systems. He also emphasized the importance of building a mature industrial chain. "A complete supply chain can significantly reduce operational risks," he said. During this transition period, companies should take the time to strengthen their technical foundations and improve efficiency.
Moreover, Li encouraged companies to use this downtime to retain skilled talent and invest in research. "In 2008 and 2009, everyone was focused on profit. Now is the time to upgrade and innovate," he concluded. The cold season, he believes, could actually be the springboard for a stronger, more sustainable future for the photovoltaic industry.
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Photovoltaic industry recession stems from the lack of core technologies