During the 2000s, China’s PV industry was driven by exports as PV use began to develop at a large scale in developing countries. This early development was accompanied by fast quality improvement and efficiency and a dramatic decrease in prices. Concerned government agencies quickly embraced the opportunity and played an important role in stimulating the domestic market by developing policies, providing incentives, and developing standards and certification capabilities. The boom that ensued was beyond all expectations and propelled China’s PV industry to a global leadership position with the following characteristics:

Quasi total coverage of the solar supply chain. According to the China Photovoltaic Industry Association (CPIA), in 2019, 6 of the top 10 polysilicon producers in the world and 15 of the top 20 modules manufacturers in the world are Chinese companies. During 2006–2019, technological advancements and increasing economies of scale reduced the price of solar PV modules in China by 96 percent and the price of BOS by 93 percent (see Figure 7.1).

Dominant position in the global PV market. Overseas markets have played a significant role in the development of China’s solar PV industry. China’s PV module export rate has never dropped below 40 percent of the total production and reached over 60 percent in 2019 (see Figure 7.2). About 70 percent of the modules used worldwide since 2015 were manufactured in China (see Figure 7.3).

World leader in technological progress. Despite fierce competition at home and abroad, aggressive private sector companies achieved impressive results. China’s solar cell conversion efficiency increased from 15 percent in 2005 to 24 percent in 2019. Since 2014, Chinese companies have broken the world conversion efficiency record for Passivated Emitter and Rear Cell (PERC) 10 times (see Figure 7.2). Specific technical paths for improving conversion efficiency reported by different companies vary. For example, Jinko used Topcon technology to improve the PERC efficiency while LONGi used double screen printing. From silicon wafer to cell to module, different technical paths show the diversity of China’s solar PV research and this diversity from different companies leads China’s solar PV technological progress.

Source：WORDLD BANK GROUP

China: 40-Year Experience in Renewable Energy Development Policies, Achievements, and Lessons Learned