Major Policy Update! Tighter Energy Consumption Standards For PV Polysilicon, Rod Pulling, And Wafer Slicing: Is The Anti-Internal Competition Era Finally Here?

1. Polysilicon Segment

• Tier 1, 2, and 3 energy consumption limits set at 5, 5.5, and 6.4 kgce/kg, respectively.
• Significantly stricter than previous expectations (originally projected at 5, 6, and 7.5 kgce/kg).
• The industry's average energy consumption in 2024 was 6.69 kgce/kg, indicating compliance challenges for most enterprises.

2. Rod Pulling Segment

• Tier 1, 2, and 3 energy consumption limits set at 2.27, 2.37, and 2.76 kgce/kg, respectively.
• The industry's average energy consumption in 2024 was 2.74 kgce/kg, close to the Tier 3 upper limit.

3. Wafer Slicing Segment

• Tier 1, 2, and 3 energy consumption limits set at 6,760, 7,370, and 9,590 kgce/million slices, respectively.
• The industry's average energy consumption in 2024 was 9,704 kgce/million slices, significantly exceeding the Tier 2 limit.

1. Accelerated Capacity Phase-Out

The Tier 3 energy consumption standards target existing production capacity. The limits for polysilicon, rod pulling, and wafer slicing all exceed the industry's 2024 average levels. This implies that non-compliant capacity may face forced shutdowns, triggering a new round of supply-side reforms.

2. Urgent Need for Technological Upgrades

Enterprises must implement technological innovations to reduce energy consumption, including:

• Improving energy efficiency of reduction furnaces.
• Optimizing thermal field design and control.
• Adopting diamond wire thinning and cutting technologies.

3. Further Industry Consolidation

Leading enterprises, with their technological and financial advantages, will find it easier to meet the new standards. Small and medium-sized enterprises, however, face greater transformation pressures, potentially accelerating industry consolidation.

1. Higher Barriers for Chinese PV Manufacturing: International buyers must reassess suppliers' compliance capabilities.
2. Accelerated Green Supply Chain Development: Energy consumption performance will become a core metric in global procurement.
3. Growing Demand for Technical Collaboration: High-efficiency energy-saving technologies will become a global industry focus.

As a long-term supplier serving global clients, we advise:

1. Supply Chain Audits: Prioritize evaluating PV material suppliers' energy consumption levels and compliance plans.
2. Diversified Procurement: Consider sourcing from regions and technology routes with varying advantages.
3. Long-Term Partnerships: Establish strategic collaborations with technologically leading enterprises.