Recently,photovoltaicThe industry's wave of capacity expansion has sparked concerns about overcapacity. Although China's "dual carbon" goals have propelled the photovoltaic industry into a super growth phase, significantly boosting industry prosperity, even the widest racetrack cannot accommodate an overwhelming influx of vehicles in a short time. No matter how compelling the growth narrative may be, the industry cannot escape cyclical patterns, and a phase of overcapacity could emerge at any moment.

Since last year, with the pace of capacity expansion, the stock prices of photovoltaic enterprises have been declining all the way. The clouds of overcapacity and low - price competition have been hanging over the industry. We have had a deep - seated pain regarding overcapacity in the photovoltaic industry. From 2008 to 2012, the photovoltaic industry advanced by leaps and bounds. More than 300 cities across the country launched photovoltaic projects. Photovoltaic enterprises scrambled to expand, leading to serious overcapacity. In the following years, more than 300 photovoltaic enterprises went bankrupt, the entire industry was in a mess, and some local investments were in vain.

After this wave of capacity expansion, a large number of companies are destined to be eliminated from the market. The founder of a leading photovoltaic company believes, "In this process, companies with fragile finances, insufficiently advanced technology, or inadequate early-stage brand channels may be the first to suffer. Whether they can survive the reshuffle remains questionable."

Facing more intense market competition, some leading enterprises have taken active countermeasures. Some enterprises choose to optimize their own capacity layout and ratio by connecting upstream and downstream links such as high - purity polysilicon, silicon wafers, battery cells, and components, improving the competitive advantage of the integrated industrial chain and enhancing their profitability. Some enterprises promote diversified business layouts and expand new spaces in fields such as hydrogen energy, energy storage, and building - integrated photovoltaics. Some enterprises also increase the intensity of setting up factories overseas to enhance their global operation capabilities.

Only the finest gold remains after the sand is washed away. Judging from the development of the photovoltaic industry over the past 20 years, due to the rapid iteration of photovoltaic technology and products, the built - in and planned - under - construction capacities of the photovoltaic industry have long been in a state of overcapacity far exceeding market demand, but advanced capacity often appears insufficient. During this period, each industrial adjustment is a market baptism of survival of the fittest. It is the intense market competition and round - after - round industry reshuffling that force enterprises to innovate continuously and make technological progress, ultimately leading to a rapid decline in the cost of photovoltaic power generation. Intense market competition is undoubtedly conducive to forging better enterprises and industries.

Facing potential overcapacity and cyclical shifts, photovoltaic enterprises must seize opportunities while enhancing risk awareness, using organizational certainty to counter external uncertainties, building competitiveness in an oversupplied market, and developing the ability to navigate cycles. It is essential to maintain a clear mind, considering whether the market can keep up with capacity expansion while pursuing growth, ensuring orderly production scaling. Companies should vigorously transform their development models, expanding scale through mergers, acquisitions, and optimizing existing resources, supported by sound financial management and risk control to safeguard operations. Additionally, leading photovoltaic companies have a responsibility to maintain the stability of the industry's supply chain. They should participate rationally in the photovoltaic sector in line with the "dual carbon" goals, establishing long-term cooperation mechanisms through strategic alliances, long-term contracts, technological collaboration, and cross-shareholding to avoid cutthroat competition and market monopolization.

The end - game of the photovoltaic race lies in innovation. The purpose of photovoltaic technology research is to achieve the best performance at the least cost. Since the birth of photovoltaic power generation technology, relying on technological innovation,solarthe battery conversion efficiency has been continuously improved, and photovoltaics has also become the renewable energy with the fastest cost reduction in the past decade or more, completely getting rid of the subsidy dependence. We look forward to another real technological breakthrough and industrial revolution in the photovoltaic industry, thus further promoting humanitys progress on the path of energy transformation.