China’s PV Industry: Hidden Concerns Behind Rapid Growth

The Chinese photovoltaic equipment market continues its rapid expansion. From January to October 2022, China’s newly installed PV capacity reached 58 gigawatts (GW) , already surpassing the total new installations for all of 2021. Mr. Wang Bohua, Honorary Chairman of the China Photovoltaic Industry Association, confirmed this at the annual conference held on December 1.

Overseas exports have also surged. During the same period, the total export value of silicon wafers, solar cells, and modules reached $44.03 billion – a 90% year‑on‑year increase – while the export volume of solar cell modules (measured in power) hit 132.2 GW, up 60% from the previous year.

However, Chinese manufacturers face “sweet troubles.” Mr. Wang Bohua noted that excessive domestic competition has created a risk of overcapacity. Furthermore, large‑scale exports have raised concerns and opposition from some countries.

The “strong” dilemma: China has built a complete PV supply chain from raw materials to finished panels, offering overwhelming cost competitiveness. According to an International Energy Agency (IEA) report from August 2022, Chinese enterprises hold over 80% global market share in silicon materials, silicon wafers, solar cells, and modules.

But precisely because China is “too powerful,” other countries – citing national security concerns – are beginning to support their own local PV production. Mr. Wang Bohua explained: “At the government level of various countries, local manufacturing of PV equipment has been included in research topics and is being supported through subsidies and other means.” As a result, Chinese manufacturers will face a tougher international competitive environment in the future.