Since 2022, silicon wafer manufacturing enterprises have expanded their production, further driving the demand for silicon materials, resulting in a continued tight supply of silicon materials and high industrial chain costs. Due to the impact of the global energy transformation, the demand for photovoltaic modules in overseas markets has surged. From the perspective of import scale, Europe and the United States have always been the largest overseas market for China's photovoltaic module exports. According to CPIA data, in 2022, the export of photovoltaic products to markets on all continents increased to varying degrees.
Image source: CPIA
However, while the export has reached a new high, we should also note that despite the high comprehensive costs of manpower, raw materials, energy, and environment, European and American countries are also making painstaking efforts to establish their own photovoltaic manufacturing system and diversify their photovoltaic supply chains. All countries, including Europe and the United States, hope that the photovoltaic manufacturing industry can benefit their own countries, rather than being a mere buyer of Chinese enterprises. Therefore, the situation of China's photovoltaic enterprises as a single dominant company may face significant challenges.
New capacity of overseas photovoltaic manufacturing industry; Source CPIA
In terms of the United States, it is the largest installed market in the world except China, and it is also the earliest and most frequent country to adopt trade protection policies for Chinese photovoltaic products. In 2011-2021, the amount of photovoltaic products imported by the United States from China directly decreased by 86%.
Similarly, the EU is formulating a series of green standards to raise the market access threshold for photovoltaic products. For example, France's carbon footprint requirements for certification, Sweden, Italy's environmental product declaration, and so on. The formulation of these policies will help European domestic manufacturers enhance their competitive advantage and reduce their dependence on China as the main importer of photovoltaic modules.
European and American countries build component factories, even if the cycle is longer and the cost is higher, they will still insist on doing it, rather than giving up. Developed countries in Europe and the United States will definitely invest heavily in their long-term economic and security interests. Even if they bear high financial costs, they will also develop their own sophisticated laboratories and cultivate the photovoltaic manufacturing industry chain. We cannot underestimate the determination of European and American countries. However, the threshold for the photovoltaic manufacturing industry lies not only in research and development, but also in the application of research and development results to practical production. The key lies in cost control and market accessibility. In the past 20 years, Chinese photovoltaic enterprises, adhering to the strong advantages of "Made in China" and "Created in China", have continued to promote a geometric decline in the production and manufacturing costs of photovoltaic products, making it possible and realistic for clean energy to replace fossil energy. It is widely believed in the market that currently, a photovoltaic module factory can be built and put into production within 90 days, which can only be achieved in China. European and American countries that want to develop the photovoltaic manufacturing industry do not have the foundation in this regard.
In the face of strong overseas market demand, although Chinese enterprises have now dominated the global photovoltaic manufacturing industry, facing the challenges posed by the new situation, Chinese photovoltaic manufacturing enterprises need to actively adjust their development strategies. Regarding the green barriers in the EU, Chinese enterprises need to accelerate the carbon footprint accounting methods for photovoltaic products, improve the database, and promote coordination and mutual recognition between China and the EU in the carbon footprint methodology of photovoltaic products. They should not look back and look ahead, Learning from photovoltaic companies such as Longji Green Energy, Jing'ao Solar, and Jingke Energy to go abroad and actively invest and set up factories overseas can not only meet the needs of overseas markets and benefit human energy transformation, but also occupy the market and improve business performance.
