Sourcing: Solar PV/subsystem materials & assembly

Once a project is underway, component parts of photovoltaic systems, such as solar panels and supports, need to be purchased, transported, and assembled. A majority of photovoltaic components are currently imported from China. China dominates the industry across all key components ranging from production of metallurgical grade silicon (MG-Si) to solar polysilicon to ingot and wafer production to solar cell and solar module production. Over 95% of ingot and wafer production is China-based. Though some European and US companies are aiming to compete, most western technology is not yet as advanced as China’s production, which leads to costs typically around 30% higher than Chinese offerings. Because of the reliance on Chinese materials, supply chain and international trade relations can be critical to development of new solar energy systems.

Many European players have announced ambitions to build a European value chain, but they are relying on expected policy support. The Green Deal Industrial Plan (GDIP) aims to increase domestic manufacturing capacity by establishing a predictable and simplified regulatory environment, speeding up access to finance, enhancing skills in the workforce, and opening trade for resilient supply chains.

Along with photovoltaic panels, additional components of solar energy systems include mounting equipment, inverters, electrical wiring, and batteries (optional). Of these components, inverters and batteries have the most potential for volatile supply chains, which occasionally limited availability in recent years.