why solar panels from China are so inexpensive？

1. Comprehensive and Large-Scale Industrial Chain

China has the world’s most complete and mature solar PV supply chain — from polysilicon, wafers, cells, modules to mounting systems — all processes can be completed domestically.

• For example, the entire production process can be done within a single city, which significantly reduces logistics, coordination, and inventory costs.

• Key materials like polysilicon, glass, and aluminum frames are often produced in-house, ensuring tight cost control.

✅ 2. Strong Government Support

• Policies like the “Golden Sun Program” (2009) and feed-in tariff subsidies accelerated the growth of domestic PV capacity and technological progress.

• Local governments support solar companies through:

  • Land use incentives

  • Electricity subsidies

  • Tax breaks

  • Financial grants or low-interest loans

• The national strategy encourages solar companies to "go global," improving their global competitiveness.

✅ 3. Economies of Scale (World’s Largest Production Capacity)

• China accounts for about 80% of global solar panel shipments. With massive scale comes stronger bargaining power.

• Leading companies like LONGi, JA Solar, Trina, Tongwei have production capacities in the tens of gigawatts (GW), far beyond most overseas manufacturers.

• Highly automated mass production drastically lowers labor-related costs.

✅ 4. Fast Technological Advancements

• Chinese companies quickly adopt advanced cell technologies like PERC, TOPCon, and HJT.

• Equipment is also mostly made in China, further reducing costs.

• Higher energy conversion efficiency means customers get more power per dollar, making even lower pricing acceptable.

✅ 5. Fierce Domestic Competition

• With numerous manufacturers competing for orders, intense price wars naturally drive panel prices down.

• Ironically, this internal competition pushes factories to be more efficient and cost-effective.

✅ 6. Favorable Export Conditions (Currency + Tax Rebates)

• Export tax rebates reduce the overall tax burden.

• The RMB exchange rate makes Chinese products more affordable for overseas buyers, indirectly lowering export prices.

✅ In Summary:

China’s low solar panel prices are not due to poor quality, but a result of integrated supply chains, strong government backing, advanced technology, and high-volume production.