popular articles

China’s solar exports booming with 64% increase in 2022

China's solar exports grew a whopping 64% in 2022, reaching US$52 billion despite global trade tensions. Thanks to their cost competitiveness and expanding production capacity, Chinese solar modules continue to dominate international markets.

Please share:

By 2022, China’s exports were primarily dominated by solar modules – with Europe remaining the country’s top solar module export market with a 56% share, according to Wood Mackenzie’s findings. But solar cells grew by more than 100% as the global photovoltaic market expanded, with Southeast Asia accounting for 31% of China’s solar cell exports.

U.S. tariffs on Chinese modules have pushed module production to Southeast Asia, where many manufacturing facilities import cells from China. Chinese modules maintained their cost competitiveness with other markets in 2022 and were up to 57% cheaper than modules made in the US and EU. This price differential was primarily due to material costs, where China holds the advantage due to its low energy costs, scale advantages, and government support, while solar module manufacturing in the U.S. and EU is not competitive without subsidies.

Conquering global markets

China’s photovoltaic production is expanding to conquer global markets. In addition to domestic supply needs, China’s export capacity for wafers and upstream cells is expected to reach more than 230 gigawatts (GW) by 2026, more than enough to meet the global demand outside of China of 170 GW by that year.

China’s PV industry is highly profitable and reinvests its profits to expand its domestic capacity, while attracting new investors. Available module capacity for export is also expected to increase gradually to 149 GW by 2026, leaving some room for growth in other markets for module production. More and more manufacturers are investing in upstream areas, which are more profitable than modules. The U.S. government’s goal of producing 100% U.S. modules by 2026 will be difficult to achieve due to a significant lack of wafer and cell production in the region, and incentives cannot fully close the manufacturing cost gap between U.S.-made modules and those from China.

With a mature supply chain and large production capacity for export, Southeast Asia has benefited from Chinese trade policies targeting PV in the United States as more module production has moved to the region. However, Chinese manufacturers hold 55% of Southeast Asia’s PV manufacturing capacity, which relies on components produced in China. Companies outside of China also have opportunities, but it will be difficult for them to escape China’s low-cost supply chain and its pool of expertise that has taken over a decade to develop.

Register free of charge for uninterrupted access.

Publicite

Recently published in

The UK government has introduced an amendment aimed at preventing its public company from buying components linked to forced labour, which could impact the supply of Chinese solar panels.
CATL introduced several innovative batteries for electric vehicles, including the Naxtra, the first series-produced sodium-ion battery, and the Freevoy, marking the entry into the era of multiple power sources.
CATL introduced several innovative batteries for electric vehicles, including the Naxtra, the first series-produced sodium-ion battery, and the Freevoy, marking the entry into the era of multiple power sources.
Meyer Burger announces the introduction of short-time work at its Thalheim site starting May 1, 2025, affecting 300 employees due to temporary material shortages required for solar cell production.
Meyer Burger announces the introduction of short-time work at its Thalheim site starting May 1, 2025, affecting 300 employees due to temporary material shortages required for solar cell production.
After a one-year interruption, the Noor Ouarzazate III solar plant, with a capacity of 150 MW, has been brought back into operation by the Masen group. This event highlights Morocco's ambitions in renewable energy and energy transition.
After a one-year interruption, the Noor Ouarzazate III solar plant, with a capacity of 150 MW, has been brought back into operation by the Masen group. This event highlights Morocco's ambitions in renewable energy and energy transition.
Algeria explores a partnership with Chinese giant LONGi to launch local solar panel production. This initiative is part of the country's energy diversification strategy.
The United States plans to impose heavy tariffs on solar panels from four Asian countries, citing transnational subsidies supported by China.
The United States plans to impose heavy tariffs on solar panels from four Asian countries, citing transnational subsidies supported by China.
Chinese group Das Solar begins construction of its first European factory in Mandeure, with an initial 2 GW capacity and the planned creation of 600 jobs.
Chinese group Das Solar begins construction of its first European factory in Mandeure, with an initial 2 GW capacity and the planned creation of 600 jobs.
EDP (Energias de Portugal) expands its German portfolio with a second 65 MWp photovoltaic complex. Carried out with Kronos Solar EDPR, this initiative supplies nearly 22,000 households and marks a step forward in its European growth strategy.
EDP (Energias de Portugal) expands its German portfolio with a second 65 MWp photovoltaic complex. Carried out with Kronos Solar EDPR, this initiative supplies nearly 22,000 households and marks a step forward in its European growth strategy.
Recurrent Energy launched operations of a 127 MW solar site in Louisiana, marking a strategic first entry into a state with strong industrial energy demand.
AXIAN Energy has entrusted Voltalia and Entech with the development of a 60 MW solar plant combined with 90 MWh storage in the Kolda region, scheduled to be operational by 2026.
AXIAN Energy has entrusted Voltalia and Entech with the development of a 60 MW solar plant combined with 90 MWh storage in the Kolda region, scheduled to be operational by 2026.
Atlas Renewable Energy has signed a power purchase agreement with Chlorum Solutions to power its chemical operations in Brazil with 24 MW of solar energy from the Draco complex.
Atlas Renewable Energy has signed a power purchase agreement with Chlorum Solutions to power its chemical operations in Brazil with 24 MW of solar energy from the Draco complex.
Kosol Energie has completed a 10 MW solar power plant in the Kutch desert, relying on GoodWe inverters to optimise energy output under extreme climate conditions.
Kosol Energie has completed a 10 MW solar power plant in the Kutch desert, relying on GoodWe inverters to optimise energy output under extreme climate conditions.
EDF Renewables and Power Sustainable secured financing for Desert Quartzite, a 375 MW solar power plant with storage, located in California and operational since December 2024.
Catalyze has secured an $85 million tax equity investment from RBC to support the development of 75 MW of commercial and community solar projects across the United States by the end of 2025.
Catalyze has secured an $85 million tax equity investment from RBC to support the development of 75 MW of commercial and community solar projects across the United States by the end of 2025.
The New York-based developer has received permission to operate Troy Solar I, a 995 kW power plant connected to the Central Maine Power grid.
The New York-based developer has received permission to operate Troy Solar I, a 995 kW power plant connected to the Central Maine Power grid.
US manufacturer ES Foundry has signed a three-year, 150 MW supply agreement with a community solar developer to reinforce its domestic supply chain and support the expansion of the solar market in the United States.
US manufacturer ES Foundry has signed a three-year, 150 MW supply agreement with a community solar developer to reinforce its domestic supply chain and support the expansion of the solar market in the United States.
The Ethiopian Prime Minister’s visit to TOYO’s factory in Vietnam signals a new phase in energy cooperation with the Japanese group, focusing on industrial expansion in Ethiopia.
Niger is increasing its reliance on solar energy to offset the reduction in Nigerian electricity exports, a direct consequence of diplomatic tensions following the regime change in Niamey.
Niger is increasing its reliance on solar energy to offset the reduction in Nigerian electricity exports, a direct consequence of diplomatic tensions following the regime change in Niamey.
DTE Energy has begun construction of a new solar park to provide Ford Motor Company with 100% renewable electricity for its manufacturing sites in Michigan.
DTE Energy has begun construction of a new solar park to provide Ford Motor Company with 100% renewable electricity for its manufacturing sites in Michigan.
Fremont Township, located in Saginaw County, has secured $600,000 in public funding for its partnership with EDP Renewables North America to develop the Eagle Creek Solar Park.
Fremont Township, located in Saginaw County, has secured $600,000 in public funding for its partnership with EDP Renewables North America to develop the Eagle Creek Solar Park.
Matrix Renewables and rPlus Energies have completed the commissioning of Pleasant Valley Solar 1, a 261 MWdc project located in Ada County, Idaho, now the largest solar facility in Idaho Power’s network.
The first phase of the 500 MW photovoltaic project in Yingjisha has been commissioned, marking a key milestone in expanding solar capacity in the Kashgar region.
The first phase of the 500 MW photovoltaic project in Yingjisha has been commissioned, marking a key milestone in expanding solar capacity in the Kashgar region.
Groupe VALOREM secured €22mn in funding with Arkéa Banque to develop 63 rooftop photovoltaic plants in Nouvelle-Aquitaine and Occitanie, consolidating its model in a shifting French solar market.
Groupe VALOREM secured €22mn in funding with Arkéa Banque to develop 63 rooftop photovoltaic plants in Nouvelle-Aquitaine and Occitanie, consolidating its model in a shifting French solar market.
In Lopera, an agricultural village in Andalusia, photovoltaic plant projects plan to expropriate olive-growing land, sparking opposition from residents over the potential uprooting of 100,000 olive trees.
In Lopera, an agricultural village in Andalusia, photovoltaic plant projects plan to expropriate olive-growing land, sparking opposition from residents over the potential uprooting of 100,000 olive trees.

Advertising