The International Energy Agency (IEA)'s newly released "Advancing Clean Technology Manufacturing" report points out that the current global solar cell and module manufacturing capacity utilization rate is about 50%, and the existing capacity can already meet the 2030 net-zero emissions target.

According to the report, global investments in new solar factories amounted to $80 billion in 2023 alone, which is two times more than in 2022. Global solar cell and module capacity grew by around 550 GW in 2023. 

Currently, about 80% of the global PV manufacturing industry is concentrated in China, while India and the United States each account for 5% of the share, and Europe accounts for only 1%. Among them, China's wafer production capacity accounts for about 95% of the global capacity, polysilicon production capacity accounts for 96%, and module production capacity accounts for 83%.

The report states, "Existing manufacturing capacity for solar PV modules and cells is already available to meet the conditions required for net-zero emissions by 2030 - six years ahead of schedule, with only modest gaps remain in the upstream steps of wafer and polysilicon manufacturing. "

While the surge in capacity has depressed module prices and attracted more downstream installations, inventories of PV modules continue to grow. However, there are already indications that the scale of currently planned capacity is being scaled back or delayed, particularly in China.

On the basis of announced projects, China's share of three segments - modules, cells and wafers has declined slightly, and the share of polysilicon capacity will increase, reaching nearly 95% by 2030, the IEA said.

Source: SOLARZOOM