Three-pronged Approach Helps Photovoltaic Industry Navigate Cycles

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■ Ying Gaofeng

Recently, the wind has quietly shifted in the photovoltaic industry, especially in the distributed PV sector: from a competition of efficiency, size, and price per watt, to a deep competition focused on scenarios, pain points, and value creation.

This is not just product iteration; it’s a fundamental restructuring of the PV industry’s logic—from scale expansion to high-quality development. When supply and demand become unbalanced, and prices fall below costs, minor efficiency improvements no longer provide a competitive edge. More importantly, understanding and solving real user pain points becomes crucial. Those who can lead this value transformation first will break out of the “involution” and win the “second half” of the distributed PV cycle adjustment.

In my view, this is a structural shift in the PV industry—from cost competition to value competition, from product-centric thinking to user-centric thinking, and from equipment supply to solution supply.

First, safety is upgrading from a “cost item” to a “value item.”

In the context of fierce price competition and extreme cost reduction, a dangerous signal is emerging. Data from the National Solar Photovoltaic Product Quality Inspection and Testing Center shows that the pass rate of modules has dropped from 100% in 2019 to 62.9% in 2024. Recently, an insurance company announced that the insurance premium for power plants using special fireproof modules has dropped by 5%. The insurance company’s pricing model is never based on “parameter levels,” but on “risk probability.” PV fires are typical “low-frequency, high-damage” events—if they don’t happen, all is well; if they do, everything resets.

In my opinion, this indicates that product safety is shifting from “passive compliance” to “active premium.” Companies that develop barriers in fireproofing, moisture resistance, lightning protection, and other technologies will gain differentiated pricing power. For users, safety is transforming from a cost item into tangible investment returns.

Second, scenario applications are moving from “rooftops” to “full space.”

The rise of balcony PV is no accident; it’s a long-overlooked market gap and a huge potential incremental market. As high-quality “roof resources” become increasingly scarce, micro-scenarios such as urban apartments, shop balconies, walls, carports, and outdoor spaces are rapidly emerging.

The deeper significance of this change is that “full-space penetration” not only expands market boundaries but also reconstructs product logic. Fragmented scenarios are forcing companies to shift from “selling products” to “selling solutions,” from a single-product mindset to lightweight, plug-and-play, portable scenario-based solutions.

Third, companies are shifting from “selling equipment” to “solving problems.”

Today, customers care not only about efficiency and price but also about returns, operation and maintenance, and safety.

This change in demand places new requirements on companies—the core capabilities must shift from “manufacturing ability” to “solution capability,” “service capability,” and “full lifecycle support.” Competition is no longer just about how advanced the production line is but about whether companies can understand true customer needs, integrate supply chain resources, and provide continuous support. Essentially, this transformation elevates PV companies from “equipment suppliers” to “energy service providers.”

In summary, moving from “parameter competition” to “solving pain points” is an inevitable step toward industry maturity and a necessary path for companies to navigate cycles. Those that focus on safety, scenarios, and services are more likely to stabilize during cycle adjustments and win in the value competition of the future.