Despite continuing high material costs, China is expected to add record solar power in 2022 as it pushes forward with a large renewable build-out to meet its ambitious climate targets. According to Wang Bohua, chairman of the China Photovoltaic Industry Association (CPIA), about 75 to 90 gigawatts (GW) of solar generating capacity will be constructed this year (Feb 23). Even the worst-case scenario would represent a significant rise over last year’s record of 54.93 gigawatts.
State-owned power companies have been capitalizing on Xi Jinping’s intentions for big solar installations in the country’s deserts, resulting in a solid pipeline of solar projects. As factories aim to replace some of their grid consumption with self-generated clean energy, the rooftop business is also booming.
According to Wang, the government will add between 83 and 99 gigawatts of new solar power every year between now and 2025. During that time, global installations will increase to 232 to 286 gigawatts per year, he predicted. While this is a significant increase, it falls far short of the 455 gigawatts per year that BloombergNEF believes will be required to keep the world on track to avoid the worst effects of climate change by 2030.
Wang also warned that Chinese companies must protect their market dominance in the face of increased competition from panel makers in the United States, the European Union, and India. “We need to speed up innovation,” he remarked.
“In order for our Chinese solar industry to be unrivaled.” According to the CPIA, Chinese businesses would likely increase polysilicon output to more than 700,000 tons this year.
This is up from 505,000 last year, when a material shortage triggered price hikes across the solar supply chain.After easing around the end of last year, polysilicon costs have begun to rise again, resulting in more expensive solar modules.
According to a letter from the Silicon Industry of China Nonferrous Metals Industry, prices would likely remain high in the short term due to robust demand.