According to the latest "Advancing Clean Technology Manufacturing" report released by the International Energy Agency, the current capacity utilization rate of the global solar cell and module manufacturing industry is about 50%. Remarkably, global investment in new solar plants will reach $80 billion in 2023, double the amount in 2022.

In 2022, China's solar industry will occupy a prominent position in the global solar industry. Specifically, China accounts for approximately 95% of global investment in silicon wafer capacity, 96% of investment in polysilicon production facilities, and 83% of investment in component factories. The International Energy Agency pointed out that approximately 440 GW of total battery and module production capacity will be deployed globally in 2023, accounting for nearly 90% of the expected 500 GW.

The report further states that existing manufacturing capacity for solar photovoltaic modules and cells is sufficient to meet demand under the New Zealand scenario in 2030, which is six years earlier than originally planned. Although there is still a certain gap in the upstream steps of silicon wafer and polysilicon manufacturing, overall, the global solar manufacturing capacity is already considerable.

However, solar PV module inventories also continue to grow, even as a sharp increase in supply drives down module prices and promotes wider consumer acceptance. At the same time, there are signs that downsizing and planned capacity expansions are being delayed, particularly in China.

In terms of geographical distribution, about 80% of the world's photovoltaic manufacturing industry is currently concentrated in China, while India and the United States each account for 5%, and Europe only accounts for 1%. According to IEA forecasts, the high geographical concentration of the entire solar PV supply chain is unlikely to change significantly in the future based on currently announced projects. China's share of module, cell and wafer production capacity may decline slightly, but its share of polysilicon production capacity will increase and is expected to be close to 95% by 2030.Editor/Zhao E