Last Thursday, State Grid Corporation of China announced that its fixed asset investment during the "16th Five-Year Plan" period is projected to reach 4 trillion yuan, setting a new historical record. According to previously released data from State Grid, its fixed asset investment during the "14th Five-Year Plan" period was estimated to exceed 2.85 trillion yuan. This new investment plan represents a 40% increase compared to the "14th Five-Year Plan," a development widely interpreted as a major positive catalyst for the solar photovoltaic industry.
Industry experts believe this massive investment systematically addresses the most significant bottleneck constraining the industry's development—grid absorption capacity. For a long time, the rapid growth of PV installations has outpaced grid infrastructure development, leading to vast amounts of clean energy being unable to be effectively integrated into the grid or transmitted to areas of demand. A substantial enhancement in grid acceptance capacity will directly stimulate downstream investment in PV power plant development. Furthermore, State Grid also announced that the annual average new installed capacity of wind and solar power in its operating regions during the "16th Five-Year Plan" period will be approximately 200 million kilowatts. This signals that the next five years will be a major period for wind and solar installations, with flexible resources like energy storage also poised for explosive growth. Seizing this moment, the FG Photovoltaic ETF (Subscription Code: 560233, Trading Code: 560230) officially launches today, helping investors capture opportunities at this industry inflection point.
In recent years, the PV industry has undergone a deep price adjustment and intense competitive consolidation. As policies against "internal卷" (cut-throat competition) continue to strengthen, disorderly low-price competition among companies is being rectified, leading to an optimization of the industry landscape. Soochow Securities points out that with the advancement of "anti-involution" policies, capacity expansion in segments like silicon wafers and modules has largely halted. The supply-demand imbalance is expected to improve by 2026, and signs of price recovery are already emerging in the industry chain. Currently, prices for some components, such as polysilicon, have risen to levels that cover costs. Various indicators suggest the industry is shifting from a singular focus on scale and cost reduction towards a competition based on comprehensive strengths in technology, branding, and channels.
While the industry's fundamentals are improving, the integration of "solar plus storage" is also opening up new growth avenues. To optimize their business structures, PV companies are actively deploying energy storage and advancing "solar-storage integration." Energy storage, by storing energy for later use, effectively addresses the mismatch between energy production and consumption times, which is particularly pronounced for intermittent and volatile renewable sources like wind and solar. With the rapid global growth of renewable energy capacity, energy storage has become an essential option for ensuring grid stability. Under carbon neutrality goals, governments are actively rolling out policies to support energy storage development, such as mandatory storage allocation policies and capacity pricing mechanisms. The improved economic viability of storage projects is expected to lead to explosive growth, which in turn will benefit the PV industry.
Faced with this historic inflection point in the PV industry, how to accurately and efficiently share in the growth dividends has become a key focus for investors. Investing in individual stocks may carry risks related to changes in technology routes or volatility in specific segments. In contrast, the FG Photovoltaic ETF (Subscription Code: 560233, Trading Code: 560230) offers a convenient solution for a diversified investment in the industry's core enterprises. The FG Photovoltaic ETF tracks the CSI Solar Energy Index (931151). This index covers the entire PV industry chain—upstream, midstream, and downstream—including PV cell modules, inverters, silicon materials and wafers, PV processing equipment, and power transmission and transformation equipment, providing a more comprehensive reflection of the overall performance of listed companies in the solar sector. The index's top three weighted sectors—PV cell modules, inverters, and silicon materials/wafers—are all core segments of the PV industry chain with high technological content, enabling investors to capture industry growth红利 while staying closely attuned to the industry's actual dynamics.
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