The next generation of photovoltaic cell technology route is once again in flames, TOPCon, HJT, and BC technologies, who will become the mainstream in the market?

     The only main theme of the photovoltaic industry has always been to reduce costs and increase efficiency. Currently, as

P-type PERC cells approach their efficiency limits, N-type cell technology with higher photoelectric conversion efficiency is

referred to as the next generation of photovoltaic cell technology.

　　Specifically, N-type battery technology is mainly divided into TOPCon (Tunnel Oxide Passivated Contact Solar Cell), HJT (Heterojunction Technology), and BC (Back Contact) technologies.

     So, which of these N-type technologies is the next generation mainstream photovoltaic technology of the Passivated Emission

and Rear Cell (PERC) technology that currently dominates the market?

     Longi Green Energy's' Off the Ground 'BC Technology

     BC technology has moved from a "niche" to a "market hotspot", and has once again sparked a frenzy of discussion in the

industry about the next generation of photovoltaic cell technology routes, all starting with the news of the photovoltaic leader

Longi Green Energy (601012. SH) "stepping down" BC technology.

     Recently, Zhong Baoshen, Chairman of Longi Green Energy, announced at the company's semi annual performance briefing

that a large number of the company's products will move towards the BC technology route. In the next 5-6 years, BC batteries

will be the absolute mainstream of crystalline silicon batteries, including double-sided and single-sided batteries.

     BC cells are photovoltaic cells that have both PN junctions and metal contacts located on the back of solar cells. They can be

combined with technologies such as PERC, HJT, TOPCon to form different technological routes.

     When asked about the reasons for choosing the BC battery technology route, Zhong Baoshen, Chairman of Longi Green

Energy, stated in an interview with reporters that after years of research, the company has found that the highest photoelectric

conversion efficiency of various technology routes currently points to BC battery technology. The complex structure and high

cost of BC batteries in the past have constrained their development. However, currently, BC battery technology has matured for

Longi, and its competitiveness has become apparent compared to various technological routes.

     At present, the company's BC products are in a stable and mass-produced stage, and we will continue to improve the yield

and overall efficiency in the future. "Zhong Baoshen said that as of now, the company can produce more than 1.5GW per month

steadily, and by the end of the year, it can increase to more than 2.2GW per month. By December of this year, the equivalent

annual production capacity is about 30GW.

     At present, besides Longi Green Energy, the main players in BC technology are Aixu Shares (600732. SH). The highest

efficiency of components from Aixu Corporation is 24.27%, while Longi Green Energy's HPBC (high-efficiency back contact

battery technology, a type of BC technology route) products reach 23.3%.

     The appearance feature of BC technology route products without grid lines on the front makes BC products highly

competitive in high premium overseas distributed markets that place more emphasis on appearance. For example, in June and

August of this year, BC Line's Aixu Co., Ltd. (600732. SH) signed supply agreements for 1.3GW and 650MW with European solar

storage distributor Memodo Group in Germany and Dutch photovoltaic service provider LIBRA, respectively.

     Return to Cost Issues

     The most important factor in transitioning from laboratory to mass production for commercialization is cost-effectiveness -

the issue of cost.

     There are various opinions in the industry regarding which of the three widely discussed N-type battery

technologies - TOPCon technology, HJT technology, and BC technology - has better cost performance and can better balance

efficiency and cost.

     The cost of BC battery equipment is lower than HJT, "said Lv Yuan, President of Longi Green Energy Products and Solutions

Center, to reporters. Longi's BC battery equipment has achieved full localization, with some supplied by self invested equipment

companies and some supplied by cooperative enterprises. At present, the list of equipment suppliers is still in the confidential

stage.

     The cost reduction route of BC technology is clear and there are no clear difficulties, "said Shen Wenzhong, director of the

Solar Energy Research Institute of Shanghai Jiao Tong University and honorary chairman of the Shanghai Solar Energy Society.

In the competition between HJT and TOPCon, the main reason why HJT is temporarily lagging behind is the high cost,

including the high initial investment cost of equipment. In terms of equipment, BC batteries have been fully localized, and the

initial investment cost of BC equipment is lower than that of HJT.

     JinkoSolar, which is betting on the TOPCon technology roadmap, believes that the complex process steps and difficulty in

cost reduction are the main disadvantages of BC. For example, in terms of reducing silver paste consumption and thinning

silicon wafers, cost reduction for BC is very difficult The company further stated that there will be a cost difference of over 0.1

yuan between BC and TOPCon in the next two to three years.

     The reporter also noticed that another component company, Aixu Co., Ltd., which adheres to the BC route, mentioned the

issue of cost in this year's interim report. The company stated that it aims to achieve ABC (the name of BC batteries produced

by Aixu Corporation) battery cost parity with TOPCon by June 2024.

　　     The development of BC technology in China cannot be ignored due to the leading driving effect. Under the demonstration role of leading enterprises such as Longi Green Energy, BC technology is bound to develop rapidly and exceed the expansion speed of traditional batteries.

　　　　     Therefore, Shen Wenzhong believes that the development of BC technology will not be as slow as in the previous decade, and in the next decade, it will definitely develop even faster, with a very promising market prospect.