China accounts for more than 80% of the market for solar panels at all stages of production, according to the International Energy Agency, more than double domestic demand for those products. Its huge economies of scale have made solar power more affordable, but also concentrated the supply chain inside China.
Regarding the installation, China is striving to lead that as well. The Renewable Energy Agency's updated report shows that solar PV installation increased from 72 GW in 2011 to more than 1 TW by the end of 2022 (IRENA, 2022b). China's share in production increased from 60 % in 2010 to almost 80 % in 2021.
Washington also says China improperly pressures foreign companies to hand over technology. China accounts for more than 80% of the market for solar panels at all stages of production, according to the International Energy Agency, more than double domestic demand for those products.
In fact, European and American machinery are three to four times higher than Chinese and South Asian ones (IEA, 2022a). All these factors allow China to provide cost-competitive manufacturing for all solar PV elements, especially since the material cost is unified.
Solar energy is the most common, cheapest, and most mature renewable energy technology. With solar photovoltaics taking over recently, an in-depth look into their supply chain shows a surprising dependency on the Chinese market from the raw materials to the assembled PVs.
European solar panel producers are calling for urgent curbs on Chinese access to the EU photovoltaic (PV) market to save their industry.