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Researched by Industrial Info Resources (Sugar Land, Texas)--The global solar market has been heavily reliant on China for a very long time. According to the International Energy Agency (IEA), China's share in all the manufacturing stages of solar panels (such as polysilicon, ingots, wafers, cells and modules) exceeds 80%, dominating the global supply chain. Since the pandemic, however, there has been a gradual but significant shift emerging. Focused on increasing self-reliance as well as reducing supply chain disruptions, several solar panel manufacturing projects outside China have started to come up, with the U.S. and Canada leading the way.
There are several factors driving this change. In the U.S., the Inflation Reduction Act of 2022, which incentivizes solar project developers to use equipment made in the U.S. and solar equipment producers via new incentive support, has played a major role in helping corporations opt for solar to get financial benefits.
Other reasons such as managing geopolitical risks, lower production and labor costs in South Asian countries such as India and the need to diversify supply chains have also helped to boost the production of renewable energy technologies.
This has led to an increase in investments outside China, with manufacturers setting up new facilities and expanding existing ones in different parts of the world. As reported by The Economic Times, India's top solar panel maker Waaree Energies (Mumbai) is expected to invest up to US$1 billion to build a factory in Texas to take advantage of the soaring U.S. demand for clean energy. Upon commencement (in 2024), the facility will be the largest in the U.S., with an annual capacity of 3 gigawatts (GW) of panels. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for the related project report.
North America is the biggest driver for solar panel investment, having a significant market share of around 87% and a sizable investment value of US$7.3 billion across 24 projects. It is followed by Asia, which has a project spending of US$604 million, and Europe with US$393 million.
Although 83% of the investment is in the initial planning stages, the sector has great potential and is anticipated to see more investments in the future.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
There are several factors driving this change. In the U.S., the Inflation Reduction Act of 2022, which incentivizes solar project developers to use equipment made in the U.S. and solar equipment producers via new incentive support, has played a major role in helping corporations opt for solar to get financial benefits.
Other reasons such as managing geopolitical risks, lower production and labor costs in South Asian countries such as India and the need to diversify supply chains have also helped to boost the production of renewable energy technologies.
This has led to an increase in investments outside China, with manufacturers setting up new facilities and expanding existing ones in different parts of the world. As reported by The Economic Times, India's top solar panel maker Waaree Energies (Mumbai) is expected to invest up to US$1 billion to build a factory in Texas to take advantage of the soaring U.S. demand for clean energy. Upon commencement (in 2024), the facility will be the largest in the U.S., with an annual capacity of 3 gigawatts (GW) of panels. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for the related project report.
North America is the biggest driver for solar panel investment, having a significant market share of around 87% and a sizable investment value of US$7.3 billion across 24 projects. It is followed by Asia, which has a project spending of US$604 million, and Europe with US$393 million.
Although 83% of the investment is in the initial planning stages, the sector has great potential and is anticipated to see more investments in the future.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
