Hello solar enthusiasts,
Have you been keeping an eye on the solar industry? It’s been growing at an impressive pace, and the future is looking even brighter. One key aspect that stands head and shoulders over the rest is the escalation in solar panel production. According to the International Energy Agency (IEA), approximately 550 gigawatts (GW) increase happened in solar cell and module manufacturing capacity globally in 2023.
It’s interesting to see how concentrated the solar sector is, with a staggering 80% of it rooted in China. The United States and India share equal parts, each holding 5% while Europe accounts for a small 1%. Now, you might be wondering, how does all this affect solar companies and a potential consumer considering solar panels for your home?
Well, dear readers, the math is simple; when solar manufacturing enhances, costs reduce, making it increasingly viable to get a solar array for home. This progress is thanks to the substantial investments in new solar factories around the globe, a whopping $80 billion in 2023, which was two times more than the previous year.
Digging deeper into these insights, the dominance of the Chinese solar industry is evident, as they were responsible for nearly 95% of global investments in wafer production capacity last year. Not only that, but they also invested 96% in polysilicon production facilities and 83% in module factories. The outcome of such investment? A massive 440 GW out of 500 GW of total cell and module capacity was successfully deployed throughout the world last year.
Now, while the increase in supply has lowered the prices of solar modules, enabling broader consumer adoption, it has also led to growing stockpiles of solar PV modules. Consequently, there have been indications of downscaling and delays of planned capacity expansions, especially in China.
Bearing all this in mind, if you’re thinking about solar companies to install your solar panels, this is a golden period. It is noteworthy though, that the high geographical concentration of the entire solar PV supply chain is unlikely to change drastically based on announced projects. China’s share will considerably hold sway over the global solar capacity, making it the industry’s Titan.
In conclusion, solar is becoming more affordable and widely adopted, courtesy of the manufacturing uplift. As a solar company or a prospective solar panels owner, this presents a kaleidoscope of opportunities to harness the power of the sun, transforming our lives while preserving our planet.
Stay tuned for more updates from the ever-evolving world of solar. Enjoy the sunshine!
Original Articlehttps://pv-magazine-usa.com/2024/05/08/global-solar-manufacturing-sector-now-at-50-utilization-rate-says-iea/
