Investment Rating - The report maintains a "Positive" investment rating for the household photovoltaic industry [2]. Core Insights - The household photovoltaic industry is transitioning through three phases: subsidy phase, parity phase, and market-oriented phase, with significant growth potential in the market-oriented phase starting in 2025 [10][12][28]. - The new policies require renewable energy to fully enter the market, which will impact the pricing and profitability of household photovoltaic projects [41][44]. - The report emphasizes the importance of adapting business models to the evolving market conditions, highlighting the continued dominance of leading companies in the industry [78][96]. Summary by Sections 1. Review: From Subsidies to Market Entry - The household photovoltaic industry has evolved through three stages: subsidy (2012-2021), parity (2022-2024), and market-oriented (2025 and beyond) [10][12]. - The subsidy phase saw rapid growth due to government incentives, with cumulative installations reaching 2.43 million units and a total capacity of 42 GW by the end of 2021 [17][19]. 2. Space: Short-term Transition and Long-term Support - The new policies will significantly affect household photovoltaic projects, particularly those relying on full-grid connection models, leading to a decline in comprehensive grid connection prices and profitability [44][49]. - The expected mechanism electricity scale could support an annual installation of approximately 40 GW for household photovoltaic systems [55]. 3. Dynamics: Cost and Price Declines, New Paths - To ensure an internal rate of return (IRR) above 6%, the average grid connection price must remain above 0.30 yuan/kWh [63][65]. - The mechanism price is expected to be higher than the cost of electricity, potentially stabilizing returns despite market fluctuations [66][70]. 4. Companies: Evolution of Business Models, Continued Leadership - The market-oriented phase introduces new requirements for trading and engineering capabilities, necessitating companies to adapt to secure stable revenue streams [80][84]. - Leading companies like Chint Aneng maintain a significant market share, benefiting from established brand reputation and extensive distribution networks [96][101].