Where Are Solar Panels Made?

The global production volume of solar panels has seen impressive growth in recent years, but where are solar panels made, and does it matter?

According to Statista, China dominates the solar panel manufacturing industry, accounting for nearly 85% of global production in 2023. Vietnam accounted for the second-largest share of production, at only 3.4%.

As solar panel adoption rates continue to increase in the UK and worldwide, learning more about where solar panels are made and the processes involved is crucial to ensuring ethical consumerism.

Quick Takeaways:

China produces most of the world’s solar panels
Asian countries dominate the global solar panel supply chain
The US is the biggest manufacturer outside of Asia
Solar panel production involves a series of complex stages, and each step can occur in a different part of the world.
Knowing where solar panels are made allows you to make ethical choices that promote human and labour rights, environmental protection, local economies, equity, and transparency in the supply chain.

Which are the Top Countries Where Solar Panels are Made?

1. China – 84.6% of Global Production

China maintains an iron grip on global solar panel production thanks to a well-established infrastructure and supply chain for module manufacturing. In 2023, the country had a global production capacity of 84.1%. It’s also home to the world’s largest solar panel manufacturing equipment suppliers.

China also has the largest share in every stage of solar panel manufacturing, from polysilicon and solar cell production to ingots, wafers, and modules. The International Energy Agency (IEA) notes that China has invested over $50 billion in developing its manufacturing capacity since 2011.

China’s dominance has been instrumental in shaping global supply and price, helping reduce the cost of solar panels worldwide.

2. Vietnam – 3.4% of Global Production

Vietnam is the largest supplier of solar panels in Southeast Asia, accounting for 3.4% of the global supply, according to Statista. The country is home to many major solar panel producers that have helped establish its manufacturing capacity. These include Trina Solar, JA Solar, and Jinko from China, Vina Solar from Canada, and First Solar from the US.

One significant benefit that improves Vietnam’s access to input materials for solar panel production and reduces delivery time is its proximity to China. Its solar module manufacturing capacity of 70GW greatly outweighs regional demand, and a large focus is on exports.

Vietnam and other countries in the region have historically attracted manufacturers due to access to export markets like Europe and the United States. The region also features low wages relative to labour productivity, manufactured inputs like glass or aluminium frames are available from the local supply, and it has a stable and cheap electricity supply.

3. India – 2.7% of Global Production

India ranks third in global solar panel manufacturing, with a capacity of 64.5 GW. Data from Statista shows India accounted for 2.7% of the global share of solar panel production in 2023.

The country is making significant strides to position itself ahead of Vietnam and become the second-largest solar panel manufacturing region by 2025. India has launched various strategic initiatives to boost manufacturing capacity and its competitive edge in the global market. These include the Approved List of Models and Manufacturers (ALMM) and the Production-Linked Incentive (PLI) scheme.

India’s competitive labour market and operational costs make it a prime location for solar panel manufacturing. Stakeholders also support talent development through partnerships with educational institutions, internships, and training programs.

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4. Thailand – 2.3% of Global Production

Thailand is among Southeast Asia’s top solar panel manufacturing countries, alongside Vietnam, Cambodia, and Lao. According to Statista, Thailand accounted for 2.3% of the global share of solar panel production.

Thailand has a large production capacity to supply domestic and global demand. Major manufacturers in Thailand include Canadian Solar, Astroenergy, Trina Solar, Talesun, Runergy, and Ure. Manufacturers in the country specialise in the cell manufacturing (14 GW) and module assembly (11 GW) segments of the solar panel manufacturing value chain.

Various factors help position Thailand as an attractive hub for solar panel manufacturers. These include economic and political stability and the effectiveness of import-export processes, given the industry’s reliance on imported materials and export markets. In 2020, Thailand ranked 21st in the World Bank’s Ease of Doing Business index.

5. United States – 2.2% of Global Production

By the end of 2023, the United States had a global solar panel production capacity of 2.2%. Policies like the Inflation Reduction Act (IRA) have changed the manufacturing landscape and made investing in the industry more attractive.

The latest IEA report notes that various firms are planning significant investments in the US as they shift production from other regions. This will allow the manufacturing capacity to reach 33 GW for polysilicon, 45 GW for modules, 6 GW for wafers, and 8 GW for cells by the end of 2024.

Other measures to support and protect the domestic industry include tariff increases on modules and cells imported from China. There are also countervailing duties on cells and modules imported from Vietnam, Malaysia, Cambodia, and Thailand.

6. Malaysia – 2.1% of Global Production

Malaysia is slightly behind the US, with a share of 2.1% of the global solar panel manufacturing capacity at the end of 2023. It’s the only country in Southeast Asia with significant silica reserves.

Thanks to supportive government regulations, the country’s installed solar panel capacity of 2.6 GW is set to grow to 6 GW by 2030. Malaysia is attractive to manufacturers thanks to its cost-effective production factors, ease of business, and access to export markets. Major players include Longi, Maxeon, First Solar, Risen, Hanwha, and Jinko Solar.

Various supporting mechanisms help drive investments in solar panel manufacturing. These include attractive tax incentives and financing arrangements for green technology. It also features partnerships between the industry and academia and strong non-financial support for foreign investors.

How Are Solar Panels Made?

Solar panel production involves a series of complex stages, and each step can occur in a different part of the world.

1. Raw Material Extraction

Solar panels are made from silicon, which is derived from quartz sand. Major polysilicon producers, the purified form of silicon, include China, the US, and Norway.

2. Wafer Production

Polysilicon is melted and sliced into thin wafers. China dominates this stage, but countries like Taiwan and Malaysia also contribute.

3. Solar Cell Manufacturing

Wafers are processed into cells, which are the building blocks of solar panels. This step requires precision engineering and specialised equipment, with significant production in China, South Korea, and Germany.

4. Module Assembly

Solar cells are assembled into modules, often in facilities closer to end markets. This step is where countries like India, the US, and Southeast Asian nations play a more prominent role.

Why Should You Know Where Solar Panels Are Made?

To Promote Human Rights and Fair Labour Practices

One of the biggest challenges facing green technologies like solar panels is mining raw materials needed for manufacturing. The treatment of workers is a significant concern, and various regions face scrutiny over human rights issues and labour practices.

Others face poor working conditions with inadequate pay or unsafe environments. For example, China’s success in solar panel manufacturing has been linked to human rights violations in the last few years.

Reports show that solar manufacturers are complicit in government-sponsored forced labour programs in China’s Xinjiang province, where a large portion of the world’s polysilicon comes from.

You can avoid contributing to exploitation by researching the manufacturing practices of companies or regions to choose solar panel brands that prioritise fair labour conditions. You can also check for certification standards that guarantee ethical practices, like Fair Trade or Responsible Business Alliance compliance.

To Promote Eco-Friendly Production

Solar panels should aid in the transition from fossil fuels, but some production practices may be more detrimental to the environment. These can include carbon-intensive manufacturing, where the energy used to produce polysilicon, wafers, and cells can sometimes come from fossil fuels.

Countries like China rely on large coal-powered factories to manufacture their global supply of solar panels, which results in a significant carbon footprint. Disposal or recycling of old solar panels is also a growing concern.

Consumers can support sustainable manufacturing by choosing solar panels from environmentally conscious manufacturers who use renewable energy for production or implement carbon offset measures. Some companies also focus on recycling and minimising waste, ensuring a more circular product lifecycle.

International shipping is also associated with high carbon footprints, so purchasing panels produced locally may be more eco-friendly.

To Empower Your Local Economy

Where solar panels are made can also impact local economies. Supporting local or regional manufacturing can foster economic growth and create jobs in those areas. Heavy reliance on importing solar panels from one region (e.g., China) can limit opportunities for other countries to develop their industries.

The concentration of manufacturing in specific areas also encourages global economic imbalances. The IEA notes that the high concentration level of the global solar panel supply chain in areas like China creates considerable vulnerabilities and poses potential challenges for energy transition.

Ethical consumerism often includes supporting products that boost local or underrepresented economies while reducing global dependencies. Choosing local and domestically produced panels contributes to your country’s job creation and economic diversification.

It balances growth and supports emerging solar markets to help distribute the benefits of the renewable energy transition more evenly.

To Promote Equity and Discourage Exploitation

Sometimes, countries rich in raw materials don’t benefit equally from the profits of solar panel production due to resource exploitation. In addition to technology, the renewable energy transition is also about fairness. Where solar panels are made can reflect broader social and economic dynamics in renewable energy access.

Knowing where and how panels are made can help you contribute to a fairer global renewable energy landscape. It allows you to support brands that ensure fair compensation for material suppliers, especially in resource-rich but economically disadvantaged areas.

You can also choose panels from manufacturers that invest in community development or training programs that can promote more equitable growth.

To Encourage Transparency in the Supply Chain

Solar panel supply chains are complex, meaning raw materials, components, and assembly can involve multiple countries and companies. Lack of transparency in this process can mask unethical practices.

Without clear information, it’s difficult to trace whether materials are ethically sourced. Some components might involve materials sourced from conflict zones or regions with questionable governance.

Prioritise brands that provide transparent and honest supply chain information to drive accountability in the industry. Some products are traceable, and manufacturers openly disclose their supply chain processes, allowing you to verify ethical sourcing.

To Align Your Values with Action

Switching to solar energy is as much about environmental responsibility as it is about cost savings. Knowing where solar panels are made ensures your values extend beyond installation to the very origins of the product.

You can determine whether the investment aligns with your commitment to reduce environmental or social harm. It helps create a more sustainable world by bridging the gap between responsible manufacturing and clean energy.

How Can You Ensure Ethical Solar Panel Choices?

Research Manufacturers — Look for companies with transparent supply chains, fair labour practices, and environmental commitments.

Ask for Certifications — Choose solar panels certified by organisations such as Fair Trade, Cradle to Cradle, or ISO standards.

Read Reviews and Reports — Investigate third-party reports or sustainability rankings for solar manufacturers.

Consult Local Installers — Many local installers can recommend panels sourced from ethical suppliers.

Push for Policy Change — Advocate for laws and trade agreements prioritising ethical solar panel production.

Final Thoughts

China remains the global leader in solar panel manufacturing and has a large share in every stage of the production process. Many top manufacturers are international entities that source and supply the required materials across multiple countries. The IEA emphasises the importance of distributing the manufacture of solar panels globally and adopting material-efficient and low-carbon production practices. You can also do your part by purchasing solar panels from the most sustainable manufacturers.

Sources and References

https://www.statista.com/statistics/668749/regional-distribution-of-solar-pv-module-manufacturing/
https://www.iea.org/reports/solar-pv-global-supply-chains/executive-summary
https://archive.doingbusiness.org/en/data/exploreeconomies/thailand
https://iea.blob.core.windows.net/assets/48d2ba37-f198-4e85-a978-faaea70ea4aa/EnergyTechnologyPerspectives2024.pdf
https://www.nytimes.com/2021/01/08/business/economy/china-solar-companies-forced-labor-xinjiang.html