The industry's "darkest hour": Photovoltaic and Yajiang projects plagued by numerous counterfeit schemes hiding tragic scams!

In the past two years, wind power and photovoltaic installations have rapidly increased, with last year already exceeding the 2030 installation targets ahead of schedule. However, behind this rapid expansion lies an overdrawn market demand and a sudden change in profit logic. Since last year, driven by capital-induced "price wars," bottlenecks in the last mile of distribution networks, and consumption issues, the photovoltaic industry has entered its "darkest hour," with project suspensions and investment withdrawals becoming the norm. There has been no sign of recovery from last year to now, and the entire industry is in a slump. In such difficult times, more and more demons and monsters appear, scams frequently emerge, and photovoltaic and energy projects are especially hard hit. Recently, "Yajiang" and "Xinjiang" have become notorious. This time, it is not because they are photovoltaic hotspots or century projects, but because they have become "scam hotspots," sounding an alarm for electricity friends! Let's take a look! (If you find this useful, please follow, like, and share with friends in need. Everyone can discuss and exchange ideas in the comments, and corrections are welcome.)

1. Xinjiang — The "serial drama" of photovoltaic scams

Since the beginning of this year, more than 9GW of photovoltaic projects in Xinjiang have been confirmed to be involved in fraud cases. Reviewing the timeline, these scams share strikingly similar patterns:

August 4

The 11th Regiment of the Xinjiang Production and Construction Corps announced that a 1.5 million kW photovoltaic sand control project (total investment of 6.1 billion yuan) was halted in November 2024 due to policy adjustments. However, criminals impersonated the project, collecting subcontracting fees under the pretense of "construction and opening ceremony" to commit fraud.

July 29

The Wushi County Development and Reform Commission refuted rumors: some people forged registration documents using the long-abandoned 2014 wind power approval to deceive others. Wensu County also exposed a forged "3GW medicine-light complementary project registration certificate," complete with official seals, making it hard to distinguish real from fake.

June 25

The Shaya County Development and Reform Commission denied false information spread by some individuals on Douyin and WeChat groups claiming that a 1GW photovoltaic industry project would be externally tendered in segments. They stated that all photovoltaic sand control project bidding information in Shaya County is based on the Xinjiang Government Procurement Network and the Aksu Public Resource Electronic Bidding Platform, firmly prohibiting illegal contracting, subcontracting, and irregular subcontracting. The public is urged not to believe or spread unverified online information.

May 20

The Yongxing Town of the 46th Regiment issued a statement that two "1.5GW photovoltaic sand control project" component and inverter bidding announcements were fake, even blatantly posted on bidding platforms.

February 23

Xinhe County discovered criminals using the guise of a "2.1 million kW photovoltaic sand control + hydrogen production + methanol project" to lure victims through labor subcontracting and business cooperation, demanding uninformed individuals and companies pay tens to hundreds of thousands of yuan in deposits or invest in shares illegally. Yanqi County also reported cases of impersonating green hydrogen project parties to defraud funds.

Comprehensive analysis of the above projects reveals the deep reasons why this area has become a "scam hotspot":

Xinjiang possesses the richest solar energy resources in the country, with an average annual sunshine duration of 2,500-3,500 hours, and the Gobi desert area reaching 3,200-3,400 hours. In recent years, the country has vigorously developed large new energy base projects such as the "Three Norths," "photovoltaic sand control," and "desert wasteland" projects, with large concentrated projects often at the gigawatt level. This year, policy adjustments (such as Document No. 136) caused some projects to halt, providing fertile ground for criminals to commit fraud under the pretense of project bidding, registration, and construction. Since last year, the photovoltaic industry has faced transformation and clearance crises, already troubled by frequent rumors. Fraudsters have taken advantage of this to stir up trouble, further worsening the situation. They exploit investors' blind trust in resource dividends, selling "subcontracting quotas" at high prices under concepts like "photovoltaic sand control" and "medicine-light complementary," which is highly deceptive.

2. Yajiang Project — The trap under the halo of a central enterprise

If the Xinjiang scams exploit real project suspensions to create opportunities, the Yajiang project scams are more covert and sophisticated.

The so-called "Lower Yarlung Tsangpo River Governance Project" does exist — with a total investment of 1.2 trillion yuan, led by central enterprises. However, concepts appearing in the scams such as "Level 1 dual network qualification for water conservancy and hydropower" and "20 billion cubic meter engineering package" are either nonexistent or forged. Common tactics used by scammers include:

1) Fabricating qualifications and relationships

There is no such thing as "Level 1 dual network construction qualification for water conservancy and hydropower" in the market; scammers invent obscure terms to create a professional impression; simultaneously, they impersonate the "China Yajiang Group" to simulate central enterprise endorsement.

2) Exploiting information asymmetry

Just days after the project started, they claim subcontracting opportunities, violating the engineering bidding process; they even mix into lists of landscaping and decoration company qualifications, producing shoddy work.

3) "Zero cost" bait

Initially promising no upfront fees, later repeatedly collecting "deposits," "facilitation fees," "expedited fees," and so on.

4) Contract signing scene packaging

Fabricating "contract signing in Beijing" scenarios, using regional authority to induce victims to pay travel and public relations expenses.

The most damaging aspect of these scams is that they wear the guise of central enterprise projects with complete contract procedures, often disappearing after collecting large deposits, leaving victims with civil judgments that are nearly impossible to enforce.

3. Why are photovoltaic project scams so frequent?

1) Investment anxiety during industry downturns

In the industry winter, quality projects are scarce, and investors and construction units eager to seize opportunities easily lose vigilance in the face of high return promises.

2) Policy and market upheavals

Document No. 136 brought adjustments to electricity pricing mechanisms, causing many projects to pause, delay, or even be canceled, providing scammers with excuses to fabricate bidding and subcontracting.

3) Project information asymmetry

Engineering information is scattered across different platforms, with delays and regional barriers, making it difficult for external contractors to verify the authenticity of projects.

4) The gray area of engineering contracts

Fraudsters use contracts to conceal the nature of scams, creating the illusion of civil disputes, which increases the difficulty for the police to file cases.

5) The long-standing issues of "fake central enterprises" and fake qualifications in the industry

In recent years, over a thousand "fake central enterprises" have been exposed, most of which are concentrated in the energy and environmental protection sectors.

4. Common types of photovoltaic engineering scams by Qiang Ge

"Free photovoltaic installation" loan scam: Using free installation as a pretext to guide signing loan contracts. However, with the current distributed management approach—"who invests, who files" principle—and the distinction between natural and non-natural persons, such scams are now easy to identify.

"Photovoltaic agent" pyramid scheme: Recruiting members to pay franchise fees, with no real business, attracting investment under the guise of profit sharing. Similar to a "Ponzi scheme."

Overseas photovoltaic fund schemes: Fabricating foreign projects and power purchase contracts, forging government approvals to defraud investments.

Fake components and fake brand channels: Selling refurbished or counterfeit products under stolen brand names.

Impersonating central enterprise subcontracting: Fabricating bidding opportunities by exploiting the popularity of central enterprise projects.

5. Anti-fraud strategies—lessons learned through painful experience

1) Verify the authenticity of the project

Directly contact the local Development and Reform Commission, Energy Bureau, or property owner to confirm the project status and bidding situation.

2) Review contracts and payment accounts

Security deposits must be transferred to the corporate account of the contract entity; refuse any mid-process changes to the payee.

3) Investigate the background of partners

Use tools like Tianyancha to verify registered capital, litigation records, and dishonesty information; beware of shell companies.

4) Be wary of high security deposits

Legitimate projects have limited deposit ratios and clear refund conditions.

5) Verify qualifications through multiple channels

Check the other party's construction and general contracting qualifications, and verify with the competent authorities if necessary.

In summary, adhere to the "three no's" principle in the engineering field: never trust subcontracting invitations from non-public channels; never pay "expedited fees" or "security deposits" outside the contract; never participate in national-level projects through "connections"—central enterprise subcontracting leaves full traceability, and private contracts are invalid.

The downturn in the photovoltaic industry is not only a test of corporate profitability but also a touchstone for industry integrity. Facing "central enterprise project opportunities" worth hundreds of millions or billions, only by adhering to verification principles, conducting careful reviews, and making cautious payments can one avoid becoming the next victim in the news.