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China dominates solar module production


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Published on: April 29, 2021 / Update from: April 29, 2021 - Author: Konrad Wolfenstein

China dominates solar module production - Image: humphery|Shutterstock.com

China dominates solar module production – Image: humphery|Shutterstock.com

China dominates solar module production

China currently dominates all steps of the photovoltaic solar module production process, a report published by Bloomberg NEF shows. China's investments in the renewable energy industry are massive and the global market shares speak for themselves. For any country that wants to expand its solar capacity, there is no way around the Chinese. This is the dilemma facing US President Joe Biden, who has vowed to be tough on China while trying to steer American energy policy towards a sustainable future.

As the Bloomberg data shows, all steps from polysilicon production to cell and finally module production are firmly in Chinese hands. The USA and Canada as well as South Korea remain smaller players in the production of photovoltaic solar modules, carrying out all production steps. While Germany remains a polysilicon producer, Taiwan is a smaller cell and module manufacturer.

The data also shows that Chinese production capacity across all steps of solar module production is growing much faster than other countries and has been doing so for nearly two decades. Bloomberg estimates that due to strong Chinese market penetration, about 60 percent of the value of a solar panel assembled in the U.S. is generated in China. For the modules assembled in Southeast Asia, which the USA usually imports, the figure is as high as 70 percent.

China Dominates All Steps of Solar Panel Production

China is currently dominating all steps of the photovoltaic solar panel production process, a report released by Bloomberg NEF shows . China's investment in renewable energy industries has been massive and global market shares tell the tale. For any country looking to up its solar capacity, there is simply no way around the Chinese. This is the dilemma faced by US President Joe Biden, who has announced he will be tough on China, while at the same time trying to steer US energy policy into a sustainable future.

As the Bloomberg data shows, all steps from polysilicon production to cell and finally module manufacturing are firmly in Chinese hands. The US and Canada as well as South Korea remain minor players in photovoltaic solar panel manufacturing that carry out all production steps. While Germany remains a Polysilicon producer, Taiwan is a small-scale cell and module manufacturer.

The data also shows that Chinese production capacity at all steps of the solar panel production process is growing at a much faster rate than in other countries and has been doing so for the best part of the last two decades. Bloomberg estimates that because of the strong Chinese market penetration, around 60 percent of the value of a US-assembled solar panel is generated in China. That number is 70 percent for modules assembled in Southeast Asia, which is the type the US most typically imports.

China Dominates Solar Panel Production - Image: Statista

China Dominates Solar Panel Production – Image: Statista

 

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