Nonetheless, rapid price declines in solar PV have not been without controversy. China, for example, has played an outsized role in scaling up the mass production of solar PV cells and modules, comprising 78% of global production in 2021 9, 10 (Fig. 1).
Over the past 40 years, solar photovoltaic (PV) prices have fallen by over two orders of magnitude, and during the period 2010 to 2021, the global weighted-average levelized cost of energy of newly commissioned utility-scale solar PVs fell by 88% (ref. 5), making solar PVs cheaper than fossil fuel power in some parts of the world.
In April, a coalition of manufacturers including First Solar, QCells and Meyer Burger filed a petition to the US International Trade Commission calling for new tariffs on imports of solar cells. They accused Chinese solar companies of dumping cells in south-east Asia, the source of the bulk of US imports.
Modelling shows that a globalized solar photovoltaic module supply chain has resulted in photovoltaic installation cost savings of billions of dollars.
Walburga Hemetsberger, chief executive of SolarPower Europe, said she was aware that others in the sector would also be petitioning the commission. “We all agree that the unchecked price drops are a critical risk for the sector, and EU leaders must take urgent action.” Copyright The Financial Times Limited 2024.
The amount of Chinese photovoltaic cells in storage was enough to cover Europe’s overall annual demand twice over, it said. Chinese companies had now taken “a dumping stance in the European market”, offering two-year contracts with prices “consistently undercutting” spot market prices.