In 2023, China saw unprecedented growth in its solar exports, marking a significant milestone despite facing challenges in revenue generation. According to recent insights from Wood Mackenzie presented at the SNEC Solar PV Conference & Exhibition in Shanghai, China's export volume for photovoltaic components surged, driven by a robust expansion in manufacturing capabilities in emerging markets.
“China's 2023 solar exports hit a record high with over 40% growth for all equipment,” the report stated. Modules reached a new high of 227 GW, while cells showed rapid growth at 61.6% to 38 GW, underscoring China's dominance in the global supply chain.
Despite the volume growth, export revenue declined by 5.6% to US$49 billion due to pricing pressures resulting from oversupply. As global markets increasingly adopt local content requirements (LCRs), Chinese manufacturers are navigating new constraints on exports by expanding their manufacturing footprint abroad.
“Chinese players are globalizing manufacturing capacity to offset a loss in exports,” the report noted, highlighting strategic shifts in response to evolving trade policies and market dynamics.
Investors in energy storage are also expanding their global presence, targeting key markets in Europe, the US, and Southeast Asia. However, challenges such as environmental regulations and talent shortages are impacting operational efficiency in overseas facilities.
Despite these challenges, Chinese manufacturers are poised to maintain their competitive edge in solar and energy storage exports, leveraging high productivity and cost efficiencies. The shift in investment towards energy storage systems (ESS) signals a strategic move to capitalize on future demand despite current market uncertainties.
As China continues to lead in global solar and energy storage markets, the industry faces ongoing adjustments to meet evolving regulatory and market demands, ensuring sustainability and growth in a competitive global landscape.
