BEIJING – China unleashed the full might of its solar energy industry in 2023. It installed more solar panels than the United States has in its history. It cut the wholesale price of panels it sells by nearly half. And its exports of fully assembled solar panels climbed 38 per cent, while its exports of key components almost doubled.
Beijing is set to further increase its manufacturing and installation of solar panels as it seeks to master global markets and wean itself from imports. China unleashed the full might of its solar energy industry last year. It installed more solar panels than the United States has in its history.
A new report by Wood Mackenzie reveals that China will control over 80 percent of the world’s production of polysilicon, wafers, cells, and modules – the critical components of solar panels – from 2023 to 2026.
China has already made major commitments to transitioning its energy systems towards renewables, especially power generation from solar, wind and hydro sources. However, there are many unknowns about the future of solar energy in China, including its cost, technical feasibility and grid compatibility in the coming decades.
The company’s U.S. projects could tap renewable energy manufacturing subsidies provided by President Biden’s Inflation Reduction Act. China’s cost advantage is formidable. A research unit of the European Commission calculated in a report in January that Chinese companies could make solar panels for 16 to 18.9 cents per watt of generating capacity.
And its exports of fully assembled solar panels climbed 38 percent while its exports of key components almost doubled. Get ready for an even bigger display of China’s solar energy dominance.