Key Messages

A strong support to domestic solar manufacturing sector coupled with fortuitous global developments for the industry have enabled Chinese firms to dominate the global market. Although solar PV installations in China are likely to witness high growth (especially in light of its climate commitments ahead of Paris CoP), the thrust on solar manufacturing will most likely remain export-oriented While Chinese expansion has not come without its discontents in the West and developing countries like India (for details, refer to CSTEP Working Paper 1), it has helped to reduce the cost of solar power leading to its growing deployment. Since solar power is not yet competitive compared to conventional sources like coal, it will be interesting to observe the trajectory global costs of solar gear follow in the light of economic recovery and accelerated deployment around the world.

How Did China become the largest Solar PV Manufacturing Country?