Many are asking the question: why China is a leader in the solar energy market. In the market today flooding with solar panels and all kinds of technologies, it is hard to understand what makes China special from others. Maybe you’re wondering how China became the king of solar energy, and why their solar companies have such a good reputation.
In this blog post, we’ll break down the main reasons behind China’s rise as the solar energy giant it is today. We’ll look at what government policies to innovation and global trade helped China lead the world in solar energy. If you want to understand how China built its solar success story, read on!
1. Government Policy and Support
China’s ascent to solar energy powerhouse is in no small part due to its government. So, from the get go, renewable and solar energy was a high priority within the country. To assist the companies to expand and grow under the solar sector, the government offered subsidies and favoring regulations to local and international solar businesses including the tax breaks.
Feed in tariffs, which guaranteed solar energy producers a fixed price for the energy they generated, was one of the key steps of China’s success. This made companies confident that when they actually invested in solar power, they would have a constant income. Furthermore, both the public and private sector in China were pushed to accelerate solar power production as a result of ambitious renewable energy targets set by China.
By putting these strategic policies in place, China did great job of setting a foundation of a strong solar energy market. With this support, Chinese companies quickly grew, innovated and scaled to meet the rapidly growing need for clean energy.
2. Innovation and Technological Advancements
China’s success in solar is about not just the quantity, but the quality and innovation as well. To increase solar panel efficiency, Chinese companies have spent heavily on research and development (R&D). That has enabled them to generate high performance panels at lower cost, making solar power more available to people around the world.
Bifacial solar panels are one key innovation of China’s solar industry. Traditional panels only capture sunlight on one side, however these panels can pull sunlight from both sides making them more efficient. Chinese companies have also been moving fast to monocrystalline and PERC (Passivated Emitter and Rear Cell) technologies that boost solar panel energy output. They have helped China remain on top of the global market in having solar panels that are one of the most efficient and affordable in today’s market today.
3. Cost Efficiency and Manufacturing Scale
It’s very cheap to make solar panels in China and solar panels are one of the biggest reasons that China is ahead in solar energy, paving the way for hybrid energy vehicles. This is largely a result of its huge manufacturing scale. A majority of the solar manufacturers in the world are based in China — especially LONGi, JinkoSolar, and Trina Solar, which are some of the largest of their kind, and are big factories producing huge quantities of solar panels.
China’s solar manufacturers are able to reap the benefits of economies of scale — the more they produce, the cheaper it gets to make each unit — by manufacturing on this scale. And you will find lower labor costs and an effective supply chain helps keep prices down. Because of this cost advantage, China has taken over the global solar market by providing top quality panels at a competitive rate, thus making solar power much more affordable for businesses and homeowners across the globe.
4. Global Trade and Market Expansion
China’s success in the domestic solar energy market is just one part of the story: It has taken over the world, becoming one of the dominant players in solar trade. Solar panels are some of the largest solar panel exporters in the world and many of these are Chinese solar companies. Currently, they supply panels to countries across Europe, North America to the far reaches of Asia, in order to help meet the quickly rising demand of renewable energy around the world.
Competitive pricing strategy is a major factor for China’s global success. Chinese solar panels are very attractive to international buyers because of lower production costs that make it cheaper than dozens of other countries. Furthermore, China’s state government has backed up this worldwide drive through its support of trade deals and partnerships that enable Chinese solar manufacturers to supply goods in markets beyond just China. By having such a global reach, China has become a number one exporter of solar panels, allowing many other countries seeking to meet their renewable energy goals to have solar energy within their reach as well.
5. China’s Domestic Market and Large-Scale Projects
Thanks to a strong domestic market, China’s solar energy industry is also flourishing. Not only is the country the biggest producer of solar panels, it is also one of the biggest consumers of solar energy. The building of some of the world’s biggest solar farms, and solar power plants, has been a large investment for China, and important for meeting the country’s growing need for energy, while reducing reliance on conventionally fossil fuel energy sources.
Besides large solar power systems, China has integrated solar power into its national grid, so that solar power is needed and reliable in Chinese energy infrastructure. As the demand for solar panels grew alongside the shift to solar energy on a national scale, China’s solar industry is now growing even more so. Chinese companies profit most—or more—from the government’s large scale push into solar energy, creating a secure market for their products while demonstrating to the rest of the world how it should be done.
6. Key Players in China’s Solar Industry
China’s phenomenal success in solar stems from its firms, who have become solar titans on a global stage. LONGi, JinkoSolar, Trina Solar, JA Solar, AikoSolar to name a few, lead this adventure, spearheading the wave of innovation, production and setting the new standards for solar technology and efficiency.
For example, a major company like LONGi produces world’s leading monocrystalline silicon solar cells which offer high efficiency and have served as a baseline in the industry. As a leading producer of solar products worldwide, ranked among the top manufacturers, JinkoSolar has supplied panels to more than 160 countries to power homes, businesses, and those large scale solar projects. Innovation and sustainability are two fields highlighted by Trina Solar and JA Solar whose active contributions help to shape the future of solar energy.
Another newcomer to the global solar market is AikoSolar, a rising star. AikoSolar is known for its cutting edge solar technology and performance panels, it has rapidly expanded its global footprint. The firm is devoted to delivering economical, high productivity solar options for residential and commercial markets. As a research and development oriented enterprise, AikoSolar is dedicated to the innovation of solar energy, which is also helping put China at the forefront of the solar industry for worldwide enterprises.
Through continuous investment in R&D, large scale manufacturing operation and strategic global partnership, these companies have achieved China as the preferred outsourcing supplier of high quality, reliable and innovative solar products.
Conclusion
Strategic planning, government support, technological innovation, and large scale manufacturing combine for China’s rise to power in the solar energy industry. In order to grab the global solar market, China crafted favorable policies, drove the development of solar technology, and exerted its production power. However, with clean energy solutions being pushed for all over the world, China’s solar industry will only get bigger.
China’s success in solar industry is an important lesson for other countries when they wish to phase out to renewable energy. Through the fostering of innovation, the support of businesses, and the execution of large scale projects, countries all around the world can replicate China’s success in order to build a more sustainable energy future.
