China is on track to set a new record for solar power installations in 2024, driven by falling production costs and increased global interest in renewable energy, said industry experts and company executives.
With the world's largest, most complete new-energy industry chain, China is expected to install 230 to 260 gigawatts of solar capacity this year, topping the record of 217 GW set last year, according to the China Photovoltaic Industry Association.
Yet, China's PV industry is on a fast track of development, buoyed by market demand and policy support under China's green commitments. In the first 10 months of this year, China's newly installed PV capacity hit a record 58 gigawatts, up 98.7 percent year-on-year, said the China Photovoltaic Industry Association.
"Solar PV installations have maintained a quite high pace this year, and we had seen an average of over 18 GW of monthly installations this year in China till October," said Zhu Yicong, vice-president of renewables and power research at global consultancy Rystad Energy.
Fifteen years ago, China built its world-leading solar manufacturing industry by investing in the domestic market. Now, the real issue faced by the industry is not over-supply but under-deployment. With that in mind, the solution to support the industry resides in markets overseas, especially in the developing world.
All these factors allow China to provide cost-competitive manufacturing for all solar PV elements, especially since the material cost is unified. That being said, PV manufacturing is 9 % higher in India, and about 20–35 % more expensive in the United States, Europe, and Korea (IEA, 2022a).
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