China's Ministry of Industry and Information Technology (MIIT) has initiated a public consultation period for a draft regulation aimed at curbing the excessive expansion of solar manufacturing capacities in the country.
The proposed document advises local solar companies to refrain from indiscriminately increasing photovoltaic (PV) production capabilities solely to boost capacity. Instead, emphasis should be placed on enhancing technological innovation, improving product quality, and reducing production costs.
Additionally, the draft regulation stipulates an increase in the minimum capital ratio for new construction and expansion projects to 30%. Previously, the minimum capital ratio was set at 30% for polysilicon production and 20% for other PV projects, according to Reuters.
MIIT's objective with these regulations is to strengthen industry management. Another significant provision mandates that sector participants allocate at least CNY 10 million (USD 1.4 million / EUR 1.3 million), or not less than 3% of total sales, towards research and development (R&D) and process enhancement.
Stakeholders interested in providing feedback or suggestions on the draft regulation have until July 15, 2024, to participate in the public consultation process.
