Global solar PV manufacturing capacity has increasingly moved from Europe, Japan and the United States to China over the last decade. China has invested over USD 50 billion in new PV supply capacity – ten times more than Europe − and created more than 300 000 manufacturing jobs across the solar Contact online >>
Global solar PV manufacturing capacity has increasingly moved from Europe, Japan and the United States to China over the last decade. China has invested over USD 50 billion in new PV supply capacity – ten times more than Europe − and created more than 300 000 manufacturing jobs across the solar PV value chain since 2011.
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.
The Solar Photovoltaics Supply Chain Review explores the global solar photovoltaics (PV) supply chain and opportunities for developing U.S. manufacturing capacity. The assessment concludes that, with significant financial support and incentives from the U.S. government as well as strategic actions focused on workforce, manufacturing, human
SNAPSHOT OF THE GLOBAL PV MARKET IN 2022. IEA PVPS has distinguished itself throughout the years by producing unbiased reports on the development of PV all over the world, based on information from official government bodies and reliable industry sources.
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. The analysis covers supply, demand, production, energy consumption, emissions, employment, production costs, investment, trade
Solar PV is a crucial pillar of clean energy transitions worldwide, underpinning efforts to reach international energy and climate goals. Over the last decade, the amount of solar PV deployed around the world has increased massively while its costs have declined drastically. Putting the world on a path to reaching net zero emissions requires solar PV to expand globally on an even greater scale, raising concerns about security of manufacturing supply for achieving such rapid growth rates – but also offering new opportunities for diversification.
To achieve the Biden Administration''s goal of 100% clean electricity by 2035, solar energy would need to grow from 4% of electricity supply today to 40%, dramatically increasing demand for solar modules and components. This rapid expansion of solar energy has the potential to yield broad benefits in the form of economic activity, improved public health, and workforce development.
The supply chain for solar PV has two branches in the United States: crystalline silicon (c-Si) PV, which made up 84% of the U.S. market in 2020, and cadmium telluride (CdTe) thin film PV, which made up the remaining 16%.
The supply chain for c-Si PV starts with the refining of high-purity polysilicon. Polysilicon is melted to grow monocrystalline silicon ingots, which are sliced into thin silicon wafers. Silicon wafers are processed to make solar cells, which are connected, sandwiched between glass and plastic sheets, and framed with aluminum to make PV modules. Then, they are mounted on racking or tracking structures and connected to the grid using a power electronics device called an inverter.
The supply chain for CdTe PV starts with refining cadmium and tellurium to high-purity powders, which are then deposited directly onto a glass sheet. Another piece of glass and plastic sealant are applied to finish the module, which then can be mounted and connected to the grid in an identical fashion to c-Si modules.
The primary inputs to the global solar supply chain include: metallurgical-grade silicon (MGS), glass, resins to make plastic sheets (encapsulant and backsheet), and aluminum. MGS is produced from high-grade quartz. Quartz is a compound of silicon and oxygen, the two most abundant elements in the earth''s crust.
While the country has considerable polysilicon production capacity, as of 2021, it was not being used for solar applications. There was also no active ingot, wafer, or silicon cell manufacturing capacity. Using imported cells, about 2 GW of c-Si modules were made domestically in 2020. An additional 25 GW of c-Si modules were imported, 75% of them from Chinese companies operating in Southeast Asia.
The United States does have production capacity for CdTe technology, which does not rely on obtaining materials from Chinese companies. The 16% of U.S. solar PV installations that used CdTe were supplied by a single U.S. company, and one-third of their modules are made in the United States.
The U.S. Photovoltaic Component Manufacturing Capacity map includes any active manufacturing site in the U.S. and their nameplate capacity, or the full amount of potential output at an existing facility, as of January 31, 2022. This does not imply that these facilities produced the amount listed. The data comes from public sources and direct communication with producers. This data is subject to change and is for general informational purposes only. SETO/NREL does not guarantee that the data is complete or free of error.
The time to build new facilities, the minimum scale of these facilities, and the capital expenditures vary by manufacturing step and supply chain component. Facilities for certain steps, such as module assembly, are less expensive and faster to scale than others, such as ingot and wafer production.
Manufacturing silicon modules in the United States in 2020 cost 30-40% more than in China due to China''s low labor costs, concentrated supply chain, and non-market practices. Labor is the primary driver of the cost differences, representing 22% of total U.S. manufacturing costs versus 8% in China. Import costs are also a factor, adding about 11% to U.S. manufacturing costs. This is due to gaps in the PV supply chain, which require the importing of components like aluminum frames, glass, and cells.
The United States does have production capacity for CdTe modules, which can be scaled-up to the limit that material availability allows, with little risk of being overtaken by low-cost foreign competition. However, no alternate PV technology, including CdTe, can displace c-Si quickly enough to achieve power sector decarbonization by 2035.
Current silicon wafer manufacturing strategies waste about one-third of the crystalline silicon material. Research into less wasteful methods is ongoing because the cost advantage is substantial and market acceptance is almost certain for any wafer that meets the specifications of cell producers.
The country that establishes the international standards for PV inverters will have a first-mover advantage, providing a window of opportunity to restore U.S. competitiveness in PV inverter design and manufacturing.
The United States would benefit from being the first to commercialize perovskite PV technology. However, it would be unprecedented for such a new PV technology to have a significant market impact in the timeframe required for decarbonization by 2035, and the United States faces intense competition from China, Europe, and Japan in the commercialization of perovskites.
At the federal level, the United States has implemented many measures to encourage domestic PV manufacturing including past tax credits, federal loans, and federal procurement to increase domestic solar demand. At state and municipal levels, policies intended to support domestic PV manufacturing have included grants, tax exemptions, land provision, and consumer incentives for purchasing domestic PV products.
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