By hannover-web.com What insights can we gather from the latest developments in China’s photovoltaic (PV) industry? To gain perspective, we reached out to industry experts to explore the remarkable growth and innovation taking place in this sector.
In the first half of this year, the performance of the Chinese photovoltaic industry has been nothing short of impressive. Production metrics for solar-grade polysilicon, silicon wafers, cells, and modules all increased by over 30% compared to the previous year. Additionally, the export volume of solar modules saw nearly a 20% rise.
According to the white paper “China’s Energy Transformation,” the country has built a comprehensive R&D, design, and manufacturing ecosystem for both wind and solar energy sectors. Technological advancements, particularly in high-efficiency crystalline silicon and perovskite solar cells, have consistently shattered world records, with mass-produced advanced crystalline silicon solar cells surpassing a 25% conversion efficiency.
What has fueled China’s ascent in the photovoltaic market, allowing it to transition from reliance on raw materials and external markets to a leadership role?
China’s output and capacity rank among the highest globally, with new installations totaling an impressive 102.48 GW in the first half of the year. At the Xuancheng silicon production base in Jiangsu, we observed towering silane reaction towers, where fine silicon particles flow into storage tanks, preparing for testing. “Granular silicon is a type of polycrystalline silicon with benefits like a smaller size and simpler production methods. Our four domestic production bases are operating efficiently, and our market share is steadily growing,” said Lan Tianshi, Co-CEO of GCL Technology.
Liu Yiyang, Deputy Secretary-General and spokesperson of the China Photovoltaic Industry Association, elaborated on the photovoltaic supply chain, which consists of upstream, midstream, and downstream segments. The upstream segment involves the production and supply of polysilicon materials, while the midstream focuses on manufacturing solar cells and modules—key components that convert sunlight into electricity.
According to data from the Ministry of Industry and Information Technology, production growth across all major segments continued strong in the first half of the year. National polysilicon production reached 1.06 million tons, reflecting a 74.9% year-over-year increase, alongside respective increases of 58.6%, 38.1%, and 32.8% in the production of wafers, crystalline silicon cells, and modules. Export figures were also promising, with silicon wafer exports jumping to 38.3 GW and module exports climbing to 129.2 GW, representing a 19.7% increase.
Liu pointed to the expanding market for photovoltaic applications as a significant driver of production growth. “The downstream sector mainly revolves around building and operating power generation systems, like solar power stations and distributed photovoltaic systems,” he noted. With global demand for renewable energy on the rise, the market has seen meaningful expansion. In the first half of this year, new installations amounted to 102.48 GW, broken down into 49.6 GW of centralized solar power, 37.03 GW for industrial and commercial usage, and 15.85 GW for residential systems.
Chinese photovoltaic companies are making notable advancements through technological innovation, enhanced R&D, and improved production efficiency, which ensure they stay at the forefront of global capabilities.
When it comes to technology leadership, 2023 saw all ten of the leading companies in the global solar cell market hailing from China, collectively accounting for 66% of the world’s total production capacity. However, the industry has previously faced hurdles, including global financial crises and trade protectionism across various nations. Recognizing the necessity of opening domestic markets and developing core technologies has been crucial for overcoming these obstacles.
To stimulate growth in the industry, the State Council’s 2013 policies advocated for expanding the domestic market, advancing technology, and enhancing industrial upgrades, thereby generating growth opportunities in domestic installations.
In their quest to compete, companies have prioritized technological innovation and robust product development. For example, GCL Technology has led the way in the industrial-scale production of granular silicon, utilizing a new production method that effectively reduces carbon footprints.
Lan highlighted the essential role of education in driving innovation: “Despite a temporary oversupply in the photovoltaic market, I remain confident in the industry’s resilience. Companies must continue to enhance R&D and promote intelligent upgrades to create new applications and broaden market opportunities.”
Looking forward, Liu Yiyang emphasized the need to advance industry standards and methodologies for carbon footprint assessments, which would support mutual recognition of PV product standards across international borders. He underscored the commitment to expanding market reach and enhancing technological provisions as vital for future success.
As the global renewable energy landscape shifts, China is positioned as a pivotal player in this transformation, dedicated to developing high-quality clean energy products while navigating the complexities of competitive international markets.
