China dominates solar module production

Published on: April 29, 2021 / Updated on: April 29, 2021 – Author: Konrad Wolfenstein

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

China dominates solar module production

China currently dominates every step of the photovoltaic solar module production process, according to a report published by Bloomberg NEF . China's investments in the renewable energy sector are massive, and its global market share speaks for itself. Any country looking to expand its solar capacity cannot ignore China. This is the dilemma facing US President Joe Biden, who has pledged to take a tough stance against China while simultaneously trying to steer American energy policy toward a sustainable future.

As Bloomberg data shows, all steps from polysilicon production to cell and finally module manufacturing are firmly in Chinese hands. The US, Canada, and 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 show that Chinese production capacity at every stage of solar panel manufacturing has been growing much faster than in other countries for almost two decades. Bloomberg estimates that, due to strong Chinese market penetration, about 60 percent of the value of a solar panel assembled in the US is generated in China. For panels assembled in Southeast Asia, which the US typically imports, that figure rises to 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