In an attempt to control overcapacity, China’s industry ministry finalized investment requirements for solar photovoltaic (PV) manufacturing projects on Wednesday, according to a notice posted on the ministry’s website.
According to the standards, solar PV projects must have a minimum capital ratio of 30%. Previously, the requirement for other PV projects was 20%, and that regulation solely applied to polysilicon production plants.
The ratio, which usually refers to the portion of total investment that shareholders invest with their own assets, was not defined by the ministry.
However, the rule—which also includes recommendations for energy and efficiency—is not legally enforceable on project approvals.
It promotes local governments to logically distribute manufacturing projects according to industrial foundations and local resource endowment.
