Report: China will account for more than 80% of the global solar energy industry chain capacity by 2026

Thank CTOnews.com netizens soft media Xinyou 1933769 for the clue delivery! CTOnews.com, Nov. 12 (Xinhua) after investing more than $130 billion in the solar industry in 2023 (CTOnews.com Note: currently about 949 billion yuan), China will account for more than 80 percent of the world's solar polysilicon, wafer, battery and module manufacturing capacity between 2023 and 2026, according to a new report from Wood Mackenzie.

Tuyuan Pexels "China's solar manufacturing expansion is driven by high profit margins of polysilicon, technological upgrading and the development of local manufacturing in overseas markets," said Huaiyan Sun, a senior consultant at Wood Mackenzie and author of the report. "China will continue to dominate the global solar supply chain and continue to widen the technology and cost gap with competitors."

According to Wood Mackenzie's forecast, China will have more than 1 TW of wafer, battery and module capacity by 2024, which means China has enough capacity to meet global demand from now until 2032.

Strong policies in overseas markets have begun to increase local solar manufacturing, but they are still uncompetitive in terms of cost compared with Chinese supply. According to the report, components made in China are 50% cheaper than those made in Europe and 65% cheaper than those made in the United States.

"despite considerable component expansion plans, overseas markets will not be able to eliminate their dependence on Chinese silicon wafers and batteries in the next three years," Huaiyan Sun said.

Outside China, India is expected to overtake Southeast Asia as the second-largest producer of components in 2025, which will be driven by India's strong PLI incentives.