A new group standard for cost accounting in the solar photovoltaic industry, spearheaded by the China Photovoltaic Industry Association under the guidance of the State Administration for Market Regulation and the Ministry of Industry and Information Technology, has been officially released.

Song Zhiping, Chairman of the China Association for Public Companies, stated that the core issue behind the industry's widespread losses is a severe mismatch between supply and demand, which has fueled disorderly price competition.

China's solar photovoltaic sector is currently undergoing its most challenging cyclical adjustment on record. The industry faces an unprecedented supply-demand imbalance and operational crisis, leaving no room for delay in establishing a legal and standardized framework for industry governance.

According to Song Zhiping, efforts to curb "involution" have lacked enforceable tools, with a key question remaining unresolved: how to determine "sales below cost" and which standard should be used to calculate costs?

The new "General Rules for Cost Accounting Models in the Photovoltaic Industry" was developed under the guidance of the State Administration for Market Regulation. It fully bridges the cost accounting relationship between standard terminology and existing anti-dumping regulations while adhering to the complete set of enterprise accounting standards.

The framework establishes a standardized cost calculation system that covers all stages from polysilicon to modules, differentiated by technology route and level. All formulas, parameters, and allocation rules within the accounting model can be verified against corporate MES and ERP financial data, ensuring strong verifiability.

Song Zhiping noted that for regulators, this standard fills a critical gap by providing a quantifiable tool for the photovoltaic industry. It allows for uniform cost data collection and calculation using the same accounting logic when conducting industry price monitoring, corporate cost self-inspections, and verification of suspected below-cost sales.

This approach resolves the long-standing issue of "inconsistent measurement methods, incomparable data, and lack of verification basis," serving as a powerful technical tool for authorities to implement industry governance.

Song Zhiping explained that energy consumption standards govern "whether production is allowed," safety standards govern "whether products are qualified," and cost accounting standards govern "whether prices are reasonable." These three categories of standards work together to form a complete regulatory framework for the industry.

"Every step in institutional construction is difficult, but this step is crucial," Song Zhiping remarked. He noted that the transition from "initiatives" to "institutions" and from "soft constraints" to "hard rules" has been a long and arduous journey for the photovoltaic industry.

The release of these general rules marks a critical milestone in this process, providing the industry with a quantifiable, verifiable, and enforceable regulatory tool for the first time.