Photovoltaic Industry Group Standard Unifies Cost Accounting Model Across Supply Chain

In the first half of 2026, China's photovoltaic industry experienced severe losses. According to public data, among 26 listed photovoltaic companies that disclosed semi-annual report forecasts, only four achieved profitability, while 22 were mired in losses, with total industry losses reaching between RMB 18.3 billion and RMB 21.4 billion. Prices across the four segments—polysilicon, wafers, cells and modules—continued to fall below cost, intensifying industry competition.

Recently, under the guidance of the State Administration for Market Regulation and the Ministry of Industry and Information Technology, the group standard "General Principles of Cost Accounting Model for Photovoltaic Industry" was officially released, led by the China Photovoltaic Industry Association. Based on enterprise accounting standards, the standard unifies the cost calculation scope, coefficients and models across the entire industry chain from polysilicon to wafers, cells and modules, forming a cost accounting framework that runs through the chain. It aims to eliminate the confusion caused by inconsistent cost accounting methods and varying interpretations within the industry.

The standard divides costs into three tiers: cash cost, production cost and full cost. Cash cost reflects the direct cash expenditures of an enterprise in the current period. Production cost includes legally accrued depreciation, reflecting the complete input in the product manufacturing process. Full cost further includes period expenses such as administrative, selling and financial costs, reflecting the overall burden an enterprise bears to maintain normal operations. The standard also sets three accounting levels—enterprise, single base and industry—so that individual costs can be verified through the overall business picture, base data and industry operating conditions. For integrated enterprises, the standard requires a stepwise full-cost transfer method, where the full cost of the previous link is recorded at original value as raw material input for the next link, and internal transfer prices below full cost are strictly prohibited.

This standard fills a gap in quantitative cost tools for the photovoltaic industry, providing a quantitative basis for determining "sales below cost" and offering a unified accounting logic for regulatory price monitoring, enterprise cost self-inspection and verification of suspected below-cost sales. Recently, the photovoltaic industry standard system has been intensively developed. In May 2026, the Ministry of Industry and Information Technology officially released two mandatory national standards: "Safety Requirements for Photovoltaic Modules" and "Nameplate Labeling Requirements for Photovoltaic Modules." On July 2, 2026, the Ministry of Industry and Information Technology, the National Development and Reform Commission and the State Administration for Market Regulation jointly released three mandatory national standards on photovoltaic energy consumption and efficiency, covering key links such as polysilicon, wafers, modules and inverters. Energy consumption standards regulate production access, safety standards ensure product quality, and cost accounting standards guide reasonable pricing. These three types of standards complement each other to form a complete system for industry management.