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Despite problems with glass for solar modules: China continues to dominate all stages of the production of photovoltaic modules


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Published on: April 2, 2023 / update from: April 2, 2023 - Author: Konrad Wolfenstein

Solar module production in China

Solar module production in China – Image: Millenius|Shutterstock.com

China's dominance in solar module production remains

Our latest research shows that China continues to dominate all stages of solar module production, from polysilicon production to solar cell and module assembly.

a 2021 report by Bloomberg NEF, China accounts for 97% of global silicon wafer production, 79% of PV cell production and 67% of polysilicon production. Furthermore, China holds the largest share at every stage of solar panel manufacturing, with its average share in the solar panel supply chain increasing from 55% in 2010 to 84% in recent years. In addition, China controls 64% of the global market share of polysilicon, a key raw material for the production of solar panels.

The country's boom in solar panel manufacturing has led to a drop in prices and accelerated adoption of solar power worldwide, but also poses a risk to the supply chain. China also dominates the solar market in PV installations and total installed capacity. Overall, it is clear that China holds a dominant position in global solar module production and this trend is expected to continue in the coming years.

Despite its dominance in solar production, China's solar industry is facing some problems

China is the world leader in solar module production and solar energy investment. According to a Bloomberg estimate, due to China's strong market penetration, about 60 to 75 percent of the value of a solar panel assembled in the US is generated in China, making the country the dominant player in the global market. China accounted for around 38% of photovoltaics (PV) growth in 2021, the highest share of any country, followed by the United States and the European Union. In 2021, China produced 75% of the world's photovoltaic modules, while the second largest manufacturer had a much smaller share.

In addition, China continues to lead in investments, accounting for almost two-thirds of global large-scale solar investments. In the first half of 2022, the country invested $41 billion, an increase of 173% year-on-year. According to the International Energy Agency (IEA), China also has the highest PV production capacity of any country and region in the world, followed by Europe and North America. The data shows that China will account for 67% of the global PV solar cell production capacity and 74% of the global PV solar module production capacity in 2021.

Despite its dominance in solar production, China's solar industry is facing some problems. The country is suffering from a severe restriction on renewable energy in northwest China, which has been particularly severe since 2015. The total amount of wasted solar power was 4.65 MWh in 2015, with a curtailment rate of 12.6%. Additionally, a shortage of glass is driving up costs and delaying production of new solar panels in China, where more than 70% of the world's solar panels are manufactured. Prices for the glass used to coat photovoltaic panels have risen 71% since July 2020, and manufacturers are unable to produce it fast enough.

Overall, China is the dominant player in solar module production and investment in solar energy, with the largest production capacity and the highest growth rates in the world.

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