Both cost reduction and efficiency improvement? “Optimization of Photovoltaic Investment Decision-making Indicators under Document No. 136

At the just-concluded SNEC 2025, industry viewpoints, trend predictions, market prospects, efficiency records… The new products of various enterprises are dazzling and the data is full, continuing the innovative development vitality of the photovoltaic industry for many years as always.

However, for domestic photovoltaic power station investment enterprises, the topics of concern mostly focus on: Under the changes brought about by Document No. 136, what countermeasures and strategies can equipment enterprises offer to the industry? This is based on the reality that with the conclusion of the 531 grid connection rush installation, China’s photovoltaic power station investment has officially entered a new cycle of power marketization.

In the face of uncertain electricity price levels, the previous fixed-rate investment decision-making model is no longer applicable. At present, some investment enterprises have chosen to wait and see, while others, in order to complete their annual investment tasks, have re-optimized their investment decision-making indicators – initial investment and cost per kilowatt-hour have become the main investment indicators during the current policy transition period.

The technological innovation corresponding to the equipment end has also put forward higher requirements – it is necessary to generate electricity efficiently and control costs at the same time. Whether the two can be balanced has become a current industry challenge.

Entering June, the investment decisions for new energy incremental projects are reviewed by different enterprises, and their attitudes towards investment decisions vary. Some central state-owned power enterprises told photovoltaic companies that as the “14th Five-Year Plan” set by the group has not yet been completed, the current incremental projects are still being advanced. “However, the investment boundaries will be tightened, and the review conditions will also be stricter, including a comprehensive assessment of land rent, resource fees, consumption and other situations. Of course, electricity prices are the major part.”

Some central power enterprises have also formulated guidance electricity price ranges based on the electricity prices and power rationing data provided by the marketing departments of the groups for each province. The provincial companies calculate the comprehensive electricity price for 20 years according to the situation or have a third party provide a guidance electricity price level for project review. Under this assessment method, the advancement of incremental projects is not significantly affected.

However, no matter which approach is adopted, the investing enterprises have tacitly reached a consensus: to reduce costs and increase efficiency. At the third New Energy Power Development Forum jointly hosted by the China Photovoltaic Industry Association and Photovoltaics, the review department of a certain central power enterprise pointed out that for the new energy projects currently being promoted, they should first be sorted and screened according to the optimal cost per kilowatt-hour. Secondly, the electricity price is inferred backward based on the lowest rate of return in each region of the group. The reversed electricity price is compared with the current electricity price level in the province. Combined with the decline in electricity prices in previous years, the project risk is evaluated and re-screened. Finally, for the projects selected for the second time, the screening will continue through the comparison of construction costs, and at the same time, the construction cost levels of similar projects in the province should also be compared.

Under the guidance of the new investment decision-making indicators, both efficient power generation and cost control are the core demands for the selection of photovoltaic investment equipment in the next step. Conversely, this will also be the direction of photovoltaic technological innovation.