[DigitalToday reporter Jinju Hong (홍진주)] China will introduce mandatory energy-efficiency standards across the solar industry from 2027. It plans to tighten production-efficiency benchmarks across the supply chain from polysilicon to wafers, solar modules and inverters, to reduce excess capacity and reshape a market structure centered on price competition.

On July 12 local time, IT media outlet TechRadar reported that China will implement new national energy-efficiency standards across the solar manufacturing industry from Jan. 1, 2027.

The standards will apply across the solar supply chain, including polysilicon, wafers, crystalline silicon solar modules and grid-connected inverters. Three national standards will be implemented: GB 29447-2026, GB 47835-2026 and GB 47834-2026.

By converting production-efficiency benchmarks that previously remained at a recommended level into mandatory rules, the move is expected to affect production, procurement, imports and the selection of equipment for renewable energy projects. First, GB 29447-2026 tightens energy-consumption standards for polysilicon and germanium production processes.

Existing polysilicon plants with high power consumption are likely to be directly affected. The industry is expected to need to meet the new standards through measures such as heat-recovery systems, hydrogen recycling and process optimisation.

GB 47835-2026 applies to wafer manufacturing. The standard focuses on improving production efficiency for monocrystalline silicon. Older ingot-growth equipment and wafer production lines with low energy efficiency are expected to face greater burdens. The importance of continuous crystal-growth technology, improved thermal management and thin-wafer production technology is expected to grow.

New standards will also be introduced for finished products. GB 47834-2026 newly establishes energy-efficiency standards for crystalline silicon solar modules and grid-connected inverters. Solar modules will use a three-tier efficiency rating system, with Grade 1 indicating the highest efficiency. The minimum Grade 3 requires conversion efficiency of about 23.2 percent for TOPCon and HJT modules and about 23.5 percent or more for BC (Back Contact) structures. It also newly includes environmental stress tests and standards for bifacial power-generation performance.

The move is seen as a policy aimed at addressing the oversupply problem recently facing China's solar industry. Over nearly the past 2 years, China's solar industry has seen production capacity far exceed demand, intensifying price competition among companies. TechRadar assessed that the new standards could help shift the industry from an "endless price-cutting competition" to a focus on production efficiency and technology competition. It said existing PERC module production lines, early TOPCon facilities and energy-intensive polysilicon plants are likely to be most affected.

Companies that have built the latest low-power production facilities, by contrast, are expected to find it relatively easier to meet the new standards.

Equipment selection for solar power projects may also change. If stricter efficiency standards are applied in government-supported tenders, state-owned power companies and public renewable energy projects are expected to be more likely to prioritise products with higher energy efficiency.

This is expected to affect not only manufacturers' production strategies but also criteria for selecting project equipment. In the short term, the cost burden is expected to increase due to equipment replacement, plant retrofits and the closure of ageing production lines.

Still, the Chinese government is making clear its direction to shift a solar industry structure that has grown through large-scale expansion and low-price competition toward energy savings and high efficiency.

The industry sees the competitiveness of China's solar market increasingly depending not simply on production scale but on how quickly it can meet the new energy-efficiency standards.