China is actively building up its green energy sector at an impressive pace. Let’s face the facts: the image of the modern world is now inseparable from renewable energy. As early as 2019, renewables accounted for more than 60% of all newly built generating capacities worldwide. Experts predict that by 2030, renewable energy could well take the leading position in global energy generation.
Map of Solar Power Plant Distribution
People’s Republic of China is leading the race in developing solar and wind energy infrastructure. Here, industrial-scale construction of solar power plants, with a total capacity of 180 gigawatts, and wind power plants, totaling 159 gigawatts, is underway (for perspective: similar projects currently under construction in the United States will generate only about 40 gigawatts).
China’s commitment to renewable energy is embedded at the government level. The Ministry of Natural Resources of China encourages local officials to support the development of renewable infrastructure on uncultivated land, including vast desert areas.
It’s therefore no surprise that the lion’s share of solar panels and wind energy equipment is manufactured in China — first, to meet the needs of its domestic market, and second, for export to other countries.
Expansion of Exports
Since China began ramping up production capacities in renewable energy, it has pursued a policy of export expansion in this sector, capitalizing on its ability to offer relatively high-quality equipment at low costs.
Due to «aggressively low» prices, for example, former U.S. President Donald Trump imposed a 30% tariff on solar panel components imported from China back in 2018. This tariff was later significantly reduced because high import duties ultimately hurt American manufacturing: demand for solar panels in the U.S. has been steadily growing year by year, necessitating a steady supply, even if it means relying on Chinese components.
There’s a strong possibility that new tariffs could be imposed on green energy goods exported to the U.S. from China. Trump, who has a viable chance of winning the upcoming presidential election in November 2024, has floated the idea of a 60% tariff on all imports from China.
For its part, China, confident in its leadership in green technologies, has occasionally hinted at possible restrictions on exports of silicon wafers — essential for producing solar panels — to the U.S.
Solar panels in China cover vast areas
Competitiveness of Chinese Equipment
Chinese solar energy equipment offers several key advantages:
1. Low Prices (even amounting to clear price-dumping): With strong government support, the industry has seen an explosion of manufacturers, with new players constantly emerging.
2. High Production Capacity: China’s industrial base has advanced to the point where its factories can produce equipment of any specification and at any scale.
3. Global Dominance: As a result of the first two factors, over 80% of all solar energy components worldwide are now produced in China. The country dominates in the manufacturing of polysilicon, wafers, photovoltaic cells, and solar panels.
Chinese-made components for solar panels are used in numerous countries, and many Thai, Malaysian, and Vietnamese companies manufacture their products within China. China has essentially established a global monopoly in producing several solar components and semi-finished products.
China’s solar sector includes a remarkable variety of production facilities, from massive, world-renowned factories to smaller workshops where automated cutting of photovoltaic panels operates alongside manual assembly.
Many large Chinese companies oversee the entire production cycle — from crystal growth to the final assembly and packaging of solar panels. This setup allows for comprehensive in-house quality control.
Top manufacturers have fully automated production lines and their own innovative technologies, producing a wide range of products. They can manufacture small panels for charging mobile devices (2-3 watts) as well as large panels over two meters in size and with power ratings from 300 to 500 watts. The market includes both single-sided and double-sided photovoltaic modules, with the latter allowing for increased energy generation.
Some smaller, budget-friendly Chinese factories produce panels based on the technologies of leading Chinese plants.
Solar Panel Production Process
The primary raw material for most solar panels is high-purity quartz sand, rich in silicon dioxide. In the initial stage, this raw material undergoes special processing to produce purified silicon.
Silicon crystals are grown using the Czochralski process, developed by Polish scientist Jan Czochralski in the late 1950s. In this process, silicon is melted in a crucible. The molten material slowly rises along the rod, gradually crystallizing.
In the next step, the crystal is shaped and then sliced into wafers no more than 300 micrometers thick, using a specialized cutting technique.
Next comes doping the introduction of additives to achieve the desired electrical and physical properties. The most common dopants for silicon are boron and phosphorus.
During the assembly of photovoltaic modules, wafers are first connected into chains and then grouped into blocks. The number of cells determines the final panel’s power output. Modules are assembled by joining and soldering the elements and are coated with a protective film.
The final step involves placing the module in a frame of the appropriate size and attaching a junction box to the back of the panel.
Finally, each solar panel undergoes quality control testing and is packaged for distribution.
Leading Chinese Renewable Energy Manufacturers
The world’s largest producers of polycrystalline silicon—the primary material for solar modules—are based in mainland China and Hong Kong. Some of the most notable companies include (although this is by no means a comprehensive list):
— Daqo New Energy: A prominent Chinese photovoltaic company, and one of the world’s leading producers of ultra-pure polysilicon for solar energy, as well as silicon ingots and wafers. Its headquarters are in Chongqing and Shanghai.
— Xinte Energy: This photovoltaic company pioneered polysilicon production in Xinjiang and is now one of the largest producers of ultra-pure polysilicon for solar power. It manufactures inverters, photovoltaic wafers, and modules. The company is also involved in power generation, and the construction and maintenance of solar and wind power stations.
— Asia Silicon: Based in Qinghai Province, Asia Silicon is a top global polysilicon manufacturer. It develops and uses advanced equipment for producing semiconductor-grade polysilicon and crystalline silicon photovoltaic modules, along with large-scale ground-mounted and distributed photovoltaic power stations.
— Inner Mongolia Dongli Photovoltaic Electronics: A leading Chinese producer specializing in crystalline silicon solar cells and modules.
— GCL Technology: Headquartered in Hong Kong, GCL is a global leader in polysilicon and semiconductor wafer manufacturing for solar energy. The company also controls various production plants for polysilicon, semiconductor wafers, and operates thermal, waste-to-energy, solar, and wind power plants across China.
— Xinjiang East Hope New Energy: A subsidiary of East Hope Group, based in the Wucaiwan Industrial Park in the Changji State of Xinjiang. It is one of China’s largest producers of polycrystalline silicon.
Today, the People’s Republic of China is literally the world’s factory for solar panels and related equipment. With the rapid growth of green technologies being heavily subsidized by the government, Chinese manufacturers are well-positioned to offer their products to international customers at competitive prices.