Global solar power developers are slowing down project installations because of a surge in costs for components, labor, and freight as the world economy bounces back from the coronavirus pandemic, .
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This special report examines solar PV supply chains from raw materials all the way to the finished product, spanning the five main segments of the manufacturing process: polysilicon, ingots, wafers, cells and modules.
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The Solar Photovoltaics Supply Chain Review explores the global solar photovoltaics (PV) supply chain and opportunities for developing U.S. manufacturing capacity.
Currently, the cost competitiveness of existing solar PV manufacturing is a key challenge to diversifying supply chains. China is the most cost-competitive location to manufacture all components of the solar PV supply chain. Costs in China are 10% lower than in India, 20% lower than in the United States, and 35% lower than in Europe.
Modelling shows that a globalized solar photovoltaic module supply chain has resulted in photovoltaic installation cost savings of billions of dollars.
Because diversification is one of the key strategies for reducing supply chain risks, the report assesses the opportunities and challenges of developing solar PV supply chains in terms of job creation, investment requirements, manufacturing costs, emissions and recycling.
Global capacity for manufacturing wafers and cells, which are key solar PV elements, and for assembling them into solar panels (also known as modules), exceeded demand by at least 100% at the end of 2021. By contrast, production of polysilicon, the key material for solar PV, is currently a bottleneck in an otherwise oversupplied supply chain.
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).
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