Global Solar Module Capacity in Manufacturing Projected to Surge by 2025
Global solar module manufacturing capacity is projected to reach 1.8 TW by 2025, according to the International Energy Agency (IEA). This represents a significant increase from the current capacity of 1.3 TW and reflects the growing demand for solar energy worldwide.
China currently dominates the global solar module manufacturing market, accounting for 80% of the world’s capacity. This extensive reach is detailed in the China Solar Panel Manufacturing Report, which foresees China’s solar PV capacity reaching over 900 GW by the end of 2025. However, other regions, including Europe and the United States, are also expanding their manufacturing capabilities to reduce reliance on Chinese imports.
Rising Solar Module Capacity in Global Manufacturing Markets
The global solar module manufacturing capacity is set to rise from 1.3 TW per year to 1.8 TW per year by 2025, as per the IEA. This marks a significant increase from previous estimates, and highlights the dynamic growth of the industry. Importantly, 75% of the planned expansions are already under construction or in development.
While China maintains its stronghold in the global market, other regions are rapidly expanding their capacities. The United States has seen a 300% increase in capacity, now standing at 25 GW per year, thanks to incentives from the Inflation Reduction Act. Recent developments in the U.S. solar industry, such as SEG Solar’s launch of a 2GW PV Manufacturing Facility in Houston, further underscore this growth trajectory. Additionally, the European Union has increased its solar module manufacturing capacity to 20 GW per year, with plans to reach 29 GW by 2025.
Growing Demand for Solar Installations Drives Solar Module Capacity Expansion
The IEA’s report also highlights the burgeoning demand for solar energy globally. In 2024, global solar installations are expected to reach 520 GW, with China accounting for 60% of the total. The United States, India, and the European Union are also experiencing significant growth in solar installations, with the U.S. witnessing a record-breaking addition of 11 GW in Q1 2024, as reported here.
The European Union has set a target of installing 600 GW of solar capacity by 2030, while the United States aims for 1 TW of solar capacity by the same year. India, too, is on a robust path with a target of 500 GW of renewable energy capacity by 2030, heavily relying on solar power as a key contributor.
Continuous Decline in Costs Enhances Solar Module Capacity Adoption
The report notes that the cost of solar energy continues to decline, making it increasingly competitive with other energy forms. In 2023, the average price of solar modules fell by 10%, and the IEA anticipates further price reductions in the years to come.
Government Support Fuels Growth in Solar Module Capacity
While the IEA’s outlook for solar energy is optimistic, it also underscores the crucial role of governmental support. The report suggests that governments should enhance financial incentives and streamline permitting processes to bolster the solar energy deployment rate.
Overall, the IEA’s findings suggest the global solar industry is on a promising growth path, driven by the escalating demand for clean energy and reducing costs. With sustained support from both governments and the private sector, solar energy is poised to play a pivotal role in the worldwide transition to a low-carbon economy.