BIPV: Bright Prospects Amidst Market Fragmentation

Building-integrated photovoltaics (BIPV) holds significant promise, yet the industry currently exhibits low market concentration.

In recent years, driven by national policies, the number of domestic enterprises entering the BIPV sector has increased substantially.   However, most remain small-scale, resulting in a fragmented industry landscape.

What is Photovoltaic Integration (BIPV)?

Photovoltaic integration, also known as "Building-Integrated Photovoltaics" (BIPV) or "solar building materials," refers to photovoltaic systems designed, constructed, and installed simultaneously with the building structure.   This creates a seamless integration where the PV system forms an integral part of the building's exterior.   Serving a dual function as both a power generator and a structural building component (or material), BIPV can also enhance architectural aesthetics, achieving a harmonious unity with the building.

Advantages and Significance of BIPV

As an organic fusion of solar power generation and architecture, BIPV offers significant advantages over retrofitted PV roofing systems in terms of economics, reliability, convenience, and aesthetics.   Under the national goals of "carbon peaking" and "carbon neutrality," BIPV represents the optimal pathway for implementing renewable energy in buildings.   It is a crucial approach for achieving the effective application of renewable energy within the built environment.

Policy Drivers

In recent years, relevant departments including the Ministry of Housing and Urban-Rural Development, the Ministry of Industry and Information Technology, and the National Development and Reform Commission, along with provinces and cities like Beijing, Tianjin, and Shanghai, have issued a series of policies and plans to foster the development of the BIPV industry.   Notably, in June 2021, the General Department of the National Energy Administration officially issued the "Notice on Submitting Pilot Programs for County-Wide (City-Wide, District-Wide) Rooftop Distributed Photovoltaic Development," aiming to organize pilot projects for county-wide promotion of distributed rooftop photovoltaics across the country.

Growth Outlook

With the introduction of this nationwide county-level distributed PV promotion policy, BIPV is anticipated to enter a phase of accelerated growth.   According to the "2022-2026 Photovoltaic Integration Industry In-depth Market Research and Investment Strategy Recommendations Report" released by the Xin Sijie Industry Research Center, China's BIPV industry scale is projected to surpass 10,000 megawatts (MW) by 2026.

Industry Structure

Industry analysts note that the BIPV sector primarily comprises PV enterprises and construction enterprises.   While national policy incentives have led to a surge in domestic companies entering the BIPV market in recent years, the predominance of small-scale players continues to result in low industry concentration.