After investing over US$130 billion into the solar industry in 2023, China will hold more than 80% of the world’s polysilicon, wafer, cell, and module manufacturing capacity from 2023 to 2026, according to a recent report by Wood Mackenzie titled “How will China’s expansion affect global solar module supply chains?”.
After investing over US$130 billion into the solar industry in 2023, China will hold more than 80% of the world’s polysilicon, wafer, cell, and module manufacturing capacity from 2023 to 2026.
Solar panels are a significant business as governments, businesses, and other organizations strive to reduce their carbon footprint in response to the growing climate crisis. Many solar panels are manufactured in China. However, a 2021 report from Sheffield Hallam University alleges the use of forced labour from the Uyghur people in the production process.
The solar manufacturing industry in China is entering a challenging time. Module manufacturers will be forced to take orders at a loss, reduce capacity, or shut down entirely. – ENDS – COP28 Several Wood Mackenzie analysts and experts will be attending COP28 in Dubai, 2-9 December.
Strong government policies in overseas markets have started to increase local solar manufacturing, but they are still not cost-competitive compared to Chinese supply. A module made in China is 50% cheaper than that produced in Europe and 65% cheaper than the US, according to the report.
And Chinese polysilicon producers look set to occupy all five leading positions from next year, Bernreuter Research predicts, with Xinte Energy and East Hope both set to climb above Wacker in 2023. PV Tech has been running an annual PV CellTech Conference since 2016.
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