**Abstract**
The role of photovoltaic power generation within the polysilicon industry has been steadily growing. In 2012, global new PV installations reached 32 GW, with cumulative global capacity exceeding 100 GW. Germany alone had a total installed capacity of 32 GW, making it the leading country in the world. By the first half of 2011, renewable energy accounted for a historic 28% of Germany's electricity demand, with solar power surpassing hydropower for the first time, contributing 3.5% to overall electricity consumption. Following the Fukushima nuclear disaster and increased smog in China, public interest in clean and efficient energy sources has surged, with solar photovoltaics becoming one of the most prominent areas of focus. Global PV installations are expected to reach 35 GW in 2013, signaling continued growth and an increasing role for photovoltaics.
**Polysilicon Industry Background**
Polysilicon serves as a fundamental raw material for both the information technology and photovoltaic industries. Many countries have designated it as a strategic resource, offering policy support and financial incentives. However, due to technological limitations, domestic demand remained heavily reliant on imports for many years. This changed in 2005 when Luoyang Zhongsi High-Tech Co., Ltd., in collaboration with China Enfei Engineering Technology Co., Ltd., launched China’s first industrial-scale polysilicon production line, breaking foreign technological and market monopolies.
In recent years, China's polysilicon industry has grown rapidly, achieving large-scale supply capabilities. By 2011, China produced 82,000 tons of polysilicon, ranking first globally and helping to alleviate domestic supply bottlenecks. By the end of 2012, China’s nominal polysilicon capacity reached 180,000 tons per year, with domestic consumption at 143,000 tons. If downstream enterprises fully utilized their capacities, they would require over 200,000 tons annually.
As photovoltaic commercialization continues, the cost of polysilicon production is expected to decrease. Currently, the key factor for survival among polysilicon producers is the cost gap compared to world-class companies.
Globally, the polysilicon industry is highly concentrated, with only seven major producers operating over the past 30 years, mainly in the U.S. and Japan. In China, the high-profit environment attracted many capital-driven companies into the industry, but due to lack of core technology and management expertise, most struggled to maintain sustainable operations. Many companies ceased production or faced intermittent operations after 2010.
The harsh market conditions have led to the elimination of small-scale and outdated facilities, increasing industry concentration. Effective polysilicon production refers to the ability to sustainably supply the market at competitive costs. Currently, China’s effective production capacity is below 100,000 tons/year, with only around 3.8 enterprises capable of providing such output.
China remains heavily dependent on imported polysilicon, with over 50% of its photovoltaic-grade polysilicon and 100% of electronic-grade polysilicon coming from abroad. The industry faces significant challenges from economic crises, trade wars, and currency fluctuations, compounded by misleading media reports that portray the sector as “high-energy consuming†and “polluting.â€
By 2012, 80% of Chinese polysilicon enterprises had been idle for over a year, with a utilization rate of just one-third. In Q1 2013, national production was under 10,000 tons, with a utilization rate below 25%. As demand for silicon in the photovoltaic industry grows, the lack of increased supply has further weakened the safety of the domestic polysilicon industry.
Since 2009, China's reliance on polysilicon imports has remained around 50%, supporting the development of its photovoltaic and information sectors. Despite this, China's polysilicon production accounts for about a quarter of global output. The shutdown of domestic producers could disrupt global supply-demand balance, leading to higher raw material prices and increased production costs for Chinese PV companies.
Thus, the polysilicon industry acts as a “shield†against rising import prices and a “protective umbrella†for the photovoltaic sector. The two industries share a common fate, and internal competition should not hinder the broader development of the photovoltaic industry.
**Polysilicon Energy Consumption Analysis**
Photovoltaic power generation differs from coal-based power generation. It uses the photovoltaic effect of semiconductors to convert sunlight directly into electricity. Although polysilicon requires energy during production, it generates significantly more energy over its lifecycle. Therefore, in terms of energy return ratio, it is vastly different from traditional industrial products.
According to calculations, the total energy consumption across the entire photovoltaic supply chain—from silica smelting to system installation—is approximately 1.60 kWh/W. This includes:
- Silica sand to metallurgical silicon: 13 kWh/kg
- Metallurgical silicon to polysilicon: 120 kWh/kg (with steam consumption of 50 kg/kg)
- Polysilicon to polycrystalline silicon: 30 kWh/kg
- Polycrystalline silicon wafers to cells: 0.2 kWh/W
- Cells to modules: 0.15 kWh/W
- Modules to systems: 0.25 kWh/W
With an average module yield of 97%, the total energy consumption becomes 1.60 kWh/W. Based on a 25-year lifespan and 1,500 annual peak hours, the energy recovery period is approximately 1.3 years. With ongoing technological advancements, this period is expected to shorten further.
Solar modules typically last 25 years, producing electricity with minimal energy input. Even after 25 years, they retain about 80% of their original efficiency, proving their long-term viability.
Comparing standard coal consumption, the average coal usage for thermal power is 324 grams/kWh. For photovoltaics, the energy consumption is 518.4 grams/Wp. Over 25 years, the energy generated is enough to offset the initial energy used, making it a clean and efficient energy source.
**Polysilicon Cleaning Production Roadmap**
Improvements in the polysilicon process have made clean production feasible. Initially, by-products like silicon tetrachloride caused environmental concerns due to inadequate treatment methods. As the industry expanded, advanced technologies such as hydrogenation were developed, converting by-products into raw materials and creating a closed-loop system that reduces costs and pollution.
Public misconceptions, such as those from 2007, led to false accusations about pollution. However, multiple inspections confirmed that emissions met environmental standards. Companies like China Silicon High-Tech received national awards for environmental contributions, highlighting the industry's commitment to sustainability.
**Comparative Analysis of Polysilicon Production Processes**
Currently, the two main production methods are the improved Siemens method and the silane method. The former dominates due to its wide application, while the latter is gaining traction. While the silane method offers potential advantages, the Siemens method remains more established.
**Foreign Polysilicon Industry Policies**
The U.S. and Germany provide substantial government support to their polysilicon industries, including subsidies, tax breaks, and infrastructure investments. These policies have given foreign companies a competitive edge, posing challenges for Chinese firms.
**Policy Recommendations for the Polysilicon Industry**
To ensure the stability and growth of the industry, China should continue supporting R&D, promoting energy-efficient technologies, and fostering a fair competitive environment. Opening up the PV market and allowing direct trading can further boost adoption. Ensuring equal access to affordable energy for polysilicon producers will enhance their competitiveness globally.
Despite challenges, the polysilicon industry has achieved significant progress, laying the foundation for the rapid growth of the photovoltaic sector. With perseverance and innovation, the future of solar energy looks promising.
Heilongjiang Junhe Building Materials Technology Co., Ltd , https://www.junhejiancai.com