The conditions, in force since March 1, were revised due to State Council guidelines for the PV industry, according to the Ministry of Industry and Information Technology (MIIT).
Stricter control was required over mere capacity expansion to force PV firms to step up innovation and improve product quality while lowering manufacturing costs.
Manufacture of multi-crystalline silicon and other materials should be initiated or remodeled with a minimum capitalization ratio of 30 percent and 20 percent, respectively, according to the conditions.
The conditions also demand existing firms transform and upgrade via restructuring and innovation.
China, a world leader in the PV industry, recorded strong growth in the sector with PV module production at 76 GW in 2017, up 31.3 percent.