China Tightens Polysilicon Energy Standards, Industry Split on Impact
China’s draft polysilicon energy consumption standard, issued Sept. 16 by the National Standardization Administration, introduces stricter requirements that industry insiders say will curb excess capacity by phasing out outdated production facilities in the long run.
The draft sets new energy consumption thresholds for polysilicon produced using the Siemens process at ≤5 kilograms of standard coal equivalent per kilogram (kgce/kg) for first-grade, ≤5.5 kgce/kg for second-grade, and ≤6.4 kgce/kg for third-grade polysilicon.
This represents a substantial tightening compared with the current limits of ≤7.5 kgce/kg, ≤8.5 kgce/kg, and ≤10.5 kgce/kg, respectively. Notably, the draft is more stringent than the revisions discussed at the China Photovoltaic Industry Association seminar in July, which proposed thresholds of ≤5 kgce/kg, ≤6 kgce/kg, and ≤7.5 kgce/kg for the three grades.
How the Draft Standard Took Shape
The release of the draft follows the Ministry of Industry and Information Technology, MIIT’s July 31 announcement of a nationwide energy-saving inspection.
The inspection covers 41 polysilicon manufacturers, identified by their registered legal entities. Some belong to the same corporate groups but operate in different regions, leading to varying energy consumption levels. Local authorities were instructed to complete inspections and submit reports by Sept. 30.
The initiative is part of broader regulatory efforts to strengthen governance in the photovoltaic sector. According to industry sources, the campaign aims to tighten energy requirements, phase out outdated capacity, support more efficient producers, and curb disorderly competition. The inspection results are also expected to guide future revisions to China’s national energy consumption benchmarks for solar-grade polysilicon.
On Sept. 10, Inner Mongolia reported that nine polysilicon enterprises had met satisfactory energy efficiency levels after on-site inspections, with their average unit energy consumption index exceeding the national advanced standard, according to the Department of Industry and Information Technology of the autonomous region. The inspections, carried out in late August by the region’s Energy-Saving Supervision Center and four state-appointed experts, covered ten enterprises. The remaining facility is scheduled for review by the MIIT in late September.
A source familiar with the matter said the inspections were strict, with even non-production electricity use counted in the calculations, which were based on total facility power consumption. Inner Mongolia is one of China’s major polysilicon hubs, accounting for about one-quarter of national capacity.
As nationwide inspections continue, industry insiders noted that the draft standard could be refined as more monitoring data is collected, though any revisions are unlikely to ease the requirements.
Industry Insiders Split on Impact
According to the Silicon Branch of the China Nonferrous Metals Industry Association, once formally implemented, enterprises exceeding the benchmark energy consumption of 6.4 kgce/kg will be required to rectify their operations within a specified period. Those failing to comply or unable to meet the admission threshold of 5.5 kgce/kg after rectification will face closure.
Preliminary estimates indicate that, following the adjustment of energy standards, China’s effective polysilicon output could decline to approximately 2.4 million metric tons per year-a 31.4% reduction from current total capacity.
However, some market participants questioned the practical impact of the standard, noting that the required energy reductions could be met through process optimizations, such as shortening ingot-pulling growth times. One manufacturer cautioned that while such adjustments may lower consumption, they risk compromising product quality, which could hinder market acceptance, reduce
competitiveness, and constrain future growth.
The same manufacturer also highlighted potential constraints for new capacity, as newly built facilities typically require at least one year of ramp-up and stabilization before reaching consistent quality, making it difficult to meet the minimum energy consumption threshold during this period. Older and smaller existing plants, particularly those with capacities below 50,000 mt, may also struggle to comply due to the production scale required to achieve the target energy levels.
A market insider noted that with feedback on the draft due by Nov. 15 and the final standard set to take effect 12 months after release, manufacturers still have time to adjust.
“It remains uncertain whether the expected 30% reduction in capacity will be achieved. The actual impact on clearing excess capacity is unlikely to be visible before the end of 2026,” the source added.
–Reporting by Summer Zhang, szhang@opisnet.com; Editing by Lujia Wang, lwang@opisnet.com