How does the photovoltaic industry turn crisis into opportunity?

Recently, China's photovoltaic (PV) sector has faced numerous challenges due to economic sanctions imposed by Western nations led by the United States. As a result, many PV companies went bankrupt or suspended operations. A recent in-depth report by CCTV explored this predicament and found that the primary cause of the widespread shutdowns was "overcapacity." To begin with, let me clarify what the photovoltaic industry entails. The most efficient way to harness solar energy is through photovoltaic conversion, which uses the photovoltaic effect to convert sunlight into electricity via silicon materials. This process forms the backbone of the "photovoltaic industry," which encompasses the production of high-purity polycrystalline silicon raw materials, solar cells, solar cell modules, and related manufacturing equipment. Although vital globally, this sector remains underutilized within China. You might wonder: if domestic applications are limited, how did these companies end up with excess capacity? The answer lies in the nature of the PV industry. It operates as a "two-way" industry: importing high-purity silicon from overseas, leveraging China's low-cost labor, utilizing local land and facilities, and exporting finished products like solar panels at minimal profit margins to Europe, America, and Japan. However, when Western countries imposed sanctions on China’s PV industry, it effectively cut off one side of the equation—exports. With import volumes unchanged and domestic demand still low, the imbalance created overcapacity, leading to the collapse of several PV firms. So, what can be done in response to this situation? In my view, the solution lies in fostering internal growth. Currently, only about 5% of domestically produced PV products are consumed within China, while the remaining 95% rely heavily on foreign markets. With global demand shrinking, shifting focus toward domestic consumption becomes crucial. Interestingly, countries like the European Union and Japan, major players in the international PV market, often experience temperate maritime climates. While their cooler summers and winters, coupled with abundant rainfall, create comfortable living conditions, they lack the consistent sunlight necessary for optimal solar power generation. In contrast, China presents an ideal environment for solar energy. Our vast plateaus and desert regions, including Tibet, Xinjiang, Qinghai, Gansu, and Inner Mongolia, cover nearly half of the nation’s total land area. These regions receive ample sunlight yet remain largely uninhabited and undeveloped. Such areas present an untapped market with immense potential for solar power development. According to recent developments, government ministries and state-owned enterprises like the national grid are likely to roll out supportive policies aimed at boosting domestic PV adoption. Encouraging distributed PV installations and expanding initiatives like the second batch of Golden Sun Projects could provide significant opportunities for PV firms. From another perspective, the sanctions imposed by Western countries on China’s PV industry should not be seen as entirely negative. Instead, this "crisis" represents an opportunity to redirect the industry's focus inward. By tapping into China’s massive domestic market, the entire renewable energy sector can experience a much-needed transformation and upgrade.