The 2013 Global Solar Market, according to a new report published by Reportstack, saw China lead the way by a landslide. China has been leading the solar market worldwide, increasing its installed PV capacity by over 37 GW in just two years. Although China’s solar boom was attributed to the anticipated reduction of Feed-in Tariffs in January 2014, the world’s second-largest market ranked Japan. However, the overall global CSP market was remarkably weak, with just 946 MW.
Despite this, the US is not lagging far behind.
China’s domestic PV market topped Germany’s in 2015, despite China’s efforts to cut its subsidy. But the country’s deadline prompted yet another surge of domestic purchasing. Even though China only has about 20 GW of total installed PV capacity, the country dominates both solar PV installation and total installed capacity. The United States is a distant fourth in both total installed capacity.
The Chinese solar industry is driven by a number of factors. The country’s government first promoted solar development in impoverished areas. China also invited other solar companies to move to the country. Chinese manufacturers could find cheap labor and receive tax credits. However, manufacturing solar panels requires large, semi-automated factories to meet the demand. In addition, it is difficult to expand production capacity without large chunks of solar panels. The yo-yo effect has helped the Chinese solar industry become the world’s largest solar manufacturer.
Recent disruptions have raised concerns about the global supply chain. The Covid-19 crisis, Russian invasion of Ukraine, and the rising prices of commodity products have all posed challenges to the global solar market. Many countries depend on imports for key supply security, and investing in diversification can improve their resilience. In 2030, China is expected to attract USD 120 billion in investment in new solar PV manufacturing facilities, with eight additional policies on the horizon.
However, China’s global solar market plan is a work in progress.
Former chairman of China’s state-owned power company Liu Zhenya recently spoke to the United Nations about China’s changing solar ambitions, including plans to power the entire world with 80 percent renewable energy. China’s solar market plan is currently a work in progress. The country aims to be a global power grid by 2050, but Liu Zhenya has outlined several key points.
The recent growth of China’s solar industry has been attributed to the country’s rapid development of renewable energy. The country’s environmental policy and international consensus on climate change make China’s efforts to develop renewable energy a positive step for the world. If other nations don’t partner with China, they may be left behind. If China continues to lead the world in solar power, the world will witness dramatic improvements in our planet’s air quality.