Executive summary – Solar PV Global Supply Chains
China has been instrumental in bringing down costs worldwide for solar PV, with multiple benefits for clean energy transitions. At the same time, the level of geographical concentration in global
China has been instrumental in bringing down costs worldwide for solar PV, with multiple benefits for clean energy transitions. At the same time, the level of geographical concentration in global
The top 10 PV inverter vendors, led by Chinese giants Huawei and Sungrow, controlled 81% of the global market. Huawei and Sungrow alone captured over 50% of the global share, thanks
The growing share of PV electricity generation during the last decades implies both (long-term) economic and environmental benefits but can also lead to challenges concerning
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In addition to economies of scale and supply chain vertical integration, technological innovation and government support also helped China assert its domination over the solar PV supply chain.
Government policies in China have shaped the global supply, demand and price of solar PV over the last decade. Chinese industrial policies focusing on solar PV as a strategic sector and on growing domestic demand have enabled economies of scale and supported continuous innovation throughout the supply chain.
This level of concentration in any global supply chain would represent a considerable vulnerability; solar PV is no exception. Solar PV’s demand for critical minerals will increase rapidly in a pathway to net zero emissions. The production of many key minerals used in PV is highly concentrated, with China playing a dominant role.
In the main text, Europe (EUR) indicates the region that includes Germany, Switzerland, and ROE. Each region is modeled as a node with PV demand, production capacity, and production costs. The supply chain itself considers the production of solar PV’s five main components: polysilicon, ingots, wafers, cells, and modules.