Summary report on solar power supply work

What is the future of solar PV supply chain?

Solar PV supply chain expansion has outpaced rapid demand growth in the last decade, with crystalline silicon technology dominating the market at over 95% of installed capacity in the last five years. At the end of 2021, global capacity for manufacturing wafers and cells and for assembling modules exceeded demand by at least 100%.

How can the solar PV industry support growing demand?

Annual investment levels need to double throughout the supply chain. Critical sectors such as polysilicon, ingots and wafers would attract the majority of investment to support growing demand. The solar PV industry could create 1 300 manufacturing jobs for each gigawatt of production capacity.

Does solar PV supply chain need to expand?

For production to expand at the strong pace and sustain manufacture levels prescribed by the IEA Net Zero Scenario, the solar PV supply chain will need to expand in step with solar PV demand. However, initiating faster and larger growth exposes the supply chain to the risks of material unavailability and industry capacity insufficiency.

How do government policies affect solar PV supply chain?

Government policies are vital to build a more secure solar PV supply chain - High commodity prices and supply chain bottlenecks resulted in the increase of 20% in solar panel prices over the last year. Globally, policies to support solar PV have focused mostly on increasing demand and lowering costs.

How does financial performance affect the solar PV supply chain?

From a security-of-supply perspective, consistently poor financial performance within and across the solar PV value chain reinforces supply chain vulnerability to bankruptcies and underinvestment, which can reduce its resiliency, raise prices and limit PV deployment. Indeed, weak financial performance has contributed to bankruptcies in the past.

How has China shaped the global supply and demand of solar PV?

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.