Visualizing Where the World's Solar Panels are Made

Published

on

By

Many governments are investing in renewable energy sources like solar power, but who controls the manufacturing of solar photovoltaic (PV) panels?

As it turns out, China owns the vast majority of the world's solar panel supply chain, controlling at least 75% of every single key stage of solar photovoltaic panel manufacturing and processing.

This visualization shows the shares held by different countries and regions of the key stages of solar panel manufacturing, using data from the International Energy Agency (IEA).

From polysilicon production to soldering finished solar cells and modules onto panels, China has the largest share in every stage of solar panel manufacturing.

Even back in 2010, the country made the majority of the world's solar panels, but over the past 12 years, its average share of the solar panel supply chain has gone from 55% to 84%.

China also continues to lead in terms of investment, making up almost two-thirds of global large-scale solar investment. In the first half of 2022, the country invested $41 billion, a 173% increase from the year before.

Source: IEANote: Percentages may not add up to 100% due to rounding

After China, the next leading nation in solar panel manufacturing is India, which makes up almost 3% of solar module manufacturing and 1% of cell manufacturing. To help meet the country's goal of 280 gigawatts (GW) of installed solar power capacity by 2030 (currently 57.9 GW), in 2022 the Indian government allocated an additional $2.6 billion to its production-linked incentive scheme that supports domestic solar PV panel manufacturing.

Alongside China and India, the Asia-Pacific region also makes up significant amounts of solar panel manufacturing, especially modules and cells at 15.4% and 12.4% respectively.

While Europe and North America make up more than one-third of the global demand for solar panels, both regions make up an average of just under 3% each across all stages of actually manufacturing solar panels.

China's dominance of solar photovoltaic panel manufacturing is not the only stranglehold the country has on renewable energy infrastructure and materials.

When it comes to wind, in 2021 China built more offshore wind turbines than all other countries combined over the past five years, and the country is also the leading producer and processor of the rare earth minerals essential for the magnets that power turbine generators.

In its full report on solar panel manufacturing, the IEA emphasized the importance of distributing global solar panel manufacturing capacity. Recent unexpected manufacturing halts in China have resulted in the price of polysilicon rising to 10-year highs, revealing the world's dependence on China for the supply of key materials.

As the world builds out its solar and wind energy capacity, will it manage to avoid repeating Europe's mistakes of energy import overdependence when it comes to the materials and manufacturing of renewable energy infrastructure?

What is the Cost of Europe's Energy Crisis?

Who Is Building Nuclear Reactors?

Mapped: Renewable Energy and Battery Installations in the U.S. in 2023

Visualizing the World's Largest Steel-Producing Countries

200 Years of Global Gold Production, by Country

Visualizing Global EV Production in 2022, by Brand

Where are Clean Energy Technologies Manufactured?

De-Dollarization: More Countries Seek Alternatives to the U.S. Dollar

This graphic describes new U.S. renewable energy installations by state along with nameplate capacity, planned to come online in 2023.

Published

on

By

Renewable energy, in particular solar power, is set to shine in 2023. This year, the U.S. plans to get over 80% of its new energy installations from sources like battery, solar, and wind.

The above map uses data from EIA to highlight planned U.S. renewable energy and battery storage installations by state for 2023.

Nearly every state in the U.S. has plans to produce new clean energy in 2023, but it's not a surprise to see the two most populous states in the lead of the pack.

Even though the majority of its power comes from natural gas, Texas currently leads the U.S. in planned renewable energy installations. The state also has plans to power nearly 900,000 homes using new wind energy.

California is second, which could be partially attributable to the passing of Title 24, an energy code that makes it compulsory for new buildings to have the equipment necessary to allow the easy installation of solar panels, battery storage, and EV charging.

New solar power in the U.S. isn't just coming from places like Texas and California. In 2023, Ohio will add 1,917 MW of new nameplate solar capacity, with Nevada and Colorado not far behind.

The state of New York is also looking to become one of the nation's leading renewable energy providers. The New York State Energy Research & Development Authority (NYSERDA) is making real strides towards this objective with 11% of the nation's new wind power projects expected to come online in 2023.

According to the data, New Hampshire is the only state in the U.S. that has no new utility-scale renewable energy installations planned for 2023. However, the state does have plans for a massive hydroelectric plant that should come online in 2024.

Renewable energy is considered essential to reduce global warming and CO2 emissions.

In line with the efforts by each state to build new renewable installations, the Biden administration has set a goal of achieving a carbon pollution-free power sector by 2035 and a net zero emissions economy by no later than 2050.

The EIA forecasts the share of U.S. electricity generation from renewable sources rising from 22% in 2022 to 23% in 2023 and to 26% in 2024.

As the market for low-emission solutions expands, China dominates the production of clean energy technologies and their components.

Published

on

By

When looking at where clean energy technologies and their components are made, one thing is very clear: China dominates the industry.

The country, along with the rest of the Asia Pacific region, accounts for approximately 75% of global manufacturing capacity across seven clean energy technologies.

Based on the IEA's 2023 Energy Technology Perspectives report, the visualization above breaks down global manufacturing capacity by region for mass-manufactured clean energy technologies, including onshore and offshore wind, solar photovoltaic (PV) systems, electric vehicles (EVs), fuel cell trucks, heat pumps, and electrolyzers.

Manufacturing capacity refers to the maximum amount of goods or products a facility can produce within a specific period. It is determined by several factors, including:

According to the IEA, the global manufacturing capacity for clean energy technologies may periodically exceed short-term production needs. Currently this is true especially for EV batteries, fuel cell trucks, and electrolyzers. For example, while only 900 fuel cell trucks were sold globally in 2021, the aggregate self-reported capacity by manufacturers was 14,000 trucks.

With that said, there still needs to be a significant increase in manufacturing capacity in the coming decades if demand aligns with the IEA's 2050 net-zero emissions scenario. Such developments require investments in new equipment and technology, developing the clean energy workforce, access to raw and refined materials, and optimizing production processes to improve efficiency.

Of the above clean energy technologies and their components, China averages 65% of global manufacturing capacity. For certain components, like solar PV wafers, this percentage is as high as 96%.

Here's a breakdown of China's manufacturing capacity per clean energy technology.

So, what gives China this advantage in the clean energy technology sector? According to the IEA report, the answer lies in a combination of factors:

The mixture of these factors has allowed China to capture a significant share of the global market for clean technologies while driving down the cost of clean energy worldwide.

As the market for low-emission solutions expands, China's dominance in the sector will likely continue in the coming years and have notable implications for the global energy and emission landscape.

Ranked: The Top 10 EV Battery Manufacturers

Visualizing China's Dominance in Rare Earth Metals

The World's Top 10 Gold Mining Companies

The Key Minerals in an EV Battery

All the World's Metals and Minerals in One Visualization

All the Metals We Mined in One Visualization

What is a Commodity Super Cycle?

How the World's Top Gold Mining Stocks Performed in 2020