China’s World-Beating Solar Boom Is Heading for a Record Year

beijingwalker · Feb 17, 2023

China’s World-Beating Solar Boom Is Heading for a Record Year

Thu, February 16, 2023 at 11:35 AM GMT+8

(Bloomberg) -- China is set to install a record 95 to 120 gigawatts of solar power this year as equipment costs fall and it pushes ahead with plans to build a massive amount of renewables in inland areas.

The forecast from the China Photovoltaic Industry Association follows additions of 87.4 gigawatts last year, also an all-time high. The growth in 2022 occurred even as prices of polysilicon, a key material for panels, soared to the highest in a decade on a supply shortfall. A decline this year looks set to spur more installations.

Asia’s largest economy has 392.6 gigawatts of solar installed at the end of last year, according to the association. That figure would have been above 400 gigawatts if not for Covid-19 outbreaks in November and December, Wang Bohua, president of the CPIA, said at a conference on Thursday.

China is the global leader in the production and installation of solar power, although it’s facing growing challenges. US Customs has detained more than 3 gigawatts of Chinese solar module exports under a forced labor law, while more restrictions on land use in China is another headwind for local companies, Wang said.

See also: Solar Price War May Help Spur China’s Renewable Energy Push

Solar equipment prices fell in January as high costs suppressed demand. Prices are likely to be on a downward trend for the rest of the year, BloombergNEF said in a note last week.

The forecast for Chinese capacity growth compares with the association’s estimate for 280 to 330 gigawatts of global solar installations this year. China’s solar equipment production rose 55% last year, while exports surged 80% to $51.3 billion, Wang said.