Global Photovoltaic Manufacturing Capacity to Double in 2024

Global photovoltaic manufacturing capacity will reach 1TW in 2024.

According to the International Energy Agency, global photovoltaic manufacturing capacity is expected to reach 1 TW in 2024, almost doubling. China plays a leading role in driving this expansion, but it also faces the challenge of oversupply. In 2022, global photovoltaic manufacturing capacity will increase by more than 70%, with China accounting for more than 95% of the new capacity. Global photovoltaic manufacturing capacity is expected to double again by 2023 and 2024, with China still accounting for more than 90% of the growth.

This expansion is sufficient to meet the IEA's annual net-zero emissions demand by 2050, which projects nearly 650 GW of installed PV capacity in 2030 and nearly 310 GW in 2024. However, the photovoltaic industry faces the challenge of oversupply.

Photovoltaic manufacturing growth in India, US and Europe.

India’s Production Linked Incentives (PLI) and the US’s Inflation Reduction Act (IRA) have triggered a surge in new solar manufacturing projects. More than 120% of such projects were announced between November 2022 and May 2023, expected to create national supply chains with more than 20 GW of capacity in each region.

New manufacturing capacity in Europe represents only 14% of projects announced since August 2022. The EU's Green Deal industrial plan and Net Zero Industry Act aim to achieve 40% of Europe's PV target by 2030, but do not yet include specific incentives. High industrial energy prices in EU countries have also increased the cost of manufacturing photovoltaic equipment.