China Holds PV Meeting to Tighten Competition Controls with Demand-Side Focus

Polysilicon futures prices have increased notably following a symposium convened by regulatory bodies in China on Friday to implement measures aimed at standardizing competition in the photovoltaic sector.

According to settlement data published by the Guangzhou Futures Exchange on Monday, settlement prices for polysilicon futures contracts scheduled for delivery between May 2026 and April 2027 ranged from 36.850 yuan ($5.372)/kg to 44.125 yuan/kg, compared with 34.810 yuan/kg to 41.160 yuan/kg recorded on the previous trading day.

Industry participants noted that the market response reflects the significance of the symposium, which emphasized the need to fully implement central government directives to regulate competition within the PV sector, while strengthening interdepartmental coordination to ensure orderly market development. Authorities identified several priority areas for governance, including capacity regulation, standards guidance, innovation-driven development, price enforcement, quality supervision, mergers and acquisitions, and intellectual property protection. These are aimed at improving market discipline and supporting high-quality and sustainable development of China’s solar industry.

Underscoring the importance of the meeting was the high-level involvement of several central government authorities — the Ministry of Industry and Information Technology, National Development and Reform Commission, State Administration for Market Regulation and National Energy Administration.

Representatives from the China Photovoltaic Industry Association and six major state-owned power generation groups also participated in the symposium. These companies hold key positions in solar power plant construction and installation activities in the country, giving them substantial influence over downstream demand and broader industry dynamics.

According to publicly available information, the cumulative installed solar capacity of the six power groups is as follows:

• State Power Investment Corp.’s 92.33 GW of installed solar capacity as of the end of February 2026;

• China Energy Investment Corp.’s 56.16 GW as of the end of 2024;

• China Huadian Corp.’s 52.866 GW as of Dec. 31, 2025;

• China Huaneng Group’s 49.83 GW as of the end of 2024;

• China National Nuclear Corp.’s 28.64 GW as of the end of October 2024; and
• China Datang Corporation’s total installed renewable energy capacity of 180 GW as of June 2024, of which solar accounted for approximately 10%, equivalent to 18 GW.

Policy Focus Extends to Demand-Side Regulation

Industry participants said that the presence of major power generation groups—rather than manufacturers primarily — at the symposium signals a shift in regulatory focus. Unlike previous policy actions that largely targeted supply-side measures, the latest development suggests a growing emphasis on demand-side intervention. Future policy measures aimed at stabilizing the solar market may therefore increasingly focus on module tender mechanisms, downstream procurement responsibilities and grid accommodation adjustments.

“Aggressive tender practices and module price suppression by downstream power project developers have been a contributing factor to intensified disorderly price competition across the industry. This has ultimately resulted in widespread losses throughout the value chain,” a market participant commented.

The source added that, unlike earlier interventions targeting manufacturers’ pricing and production activities, attempts to stabilize prices from the end-user side represent a new form of policy intervention targeting demand-side market behavior.

Another industry participant suggested that, under a more regulated tender environment, major state-owned project developers may allocate procurement volumes among multiple manufacturers based on regional presence, operational strength or strategic positioning across provinces. Such allocation mechanisms could help mitigate purely price competition and support a more balanced market structure.

Market Skepticism Persists Amid Ongoing Overcapacity Risks

However, some industry insiders remain cautious regarding the overall effectiveness of demand-side intervention. One market source noted that even if module prices receive policy support, the fundamental issue of overcapacity across the solar value chain remains unresolved. As a result, intense competition among manufacturers in large-scale procurement tenders is expected to persist, although this may gradually shift from purely price-based strategies toward differentiation based on delivery capability, reliability and other commercial reasons.

Furthermore, as noted by market sources, domestic demand alone remains insufficient to absorb China’s substantial solar manufacturing capacity. Thus, the overall market opportunity remains limited relative to total supply. Consequently, even if domestic module prices receive policy-driven support, manufacturers are likely to intensify competition in overseas markets to secure export orders.

“We may see continued downward pressure on export module prices in the future, which could delay the recovery of profitability across the manufacturing sector,” the source added.

—Reporting by Summer Zhang, szhang@opisnet.com; Editing by Mei-Hwen Wong, mwong@opisnet.com