why solar panels from China are so inexpensive?
Chia sẻ
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.
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For example, the entire production process can be done within a single city, which significantly reduces logistics, coordination, and inventory costs.
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Key materials like polysilicon, glass, and aluminum frames are often produced in-house, ensuring tight cost control.
✅ 2. Strong Government Support
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Policies like the “Golden Sun Program” (2009) and feed-in tariff subsidies accelerated the growth of domestic PV capacity and technological progress.
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Local governments support solar companies through:
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Land use incentives
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Electricity subsidies
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Tax breaks
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Financial grants or low-interest loans
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The national strategy encourages solar companies to "go global," improving their global competitiveness.
✅ 3. Economies of Scale (World’s Largest Production Capacity)
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China accounts for about 80% of global solar panel shipments. With massive scale comes stronger bargaining power.
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Leading companies like LONGi, JA Solar, Trina, Tongwei have production capacities in the tens of gigawatts (GW), far beyond most overseas manufacturers.
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Highly automated mass production drastically lowers labor-related costs.
✅ 4. Fast Technological Advancements
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Chinese companies quickly adopt advanced cell technologies like PERC, TOPCon, and HJT.
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Equipment is also mostly made in China, further reducing costs.
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Higher energy conversion efficiency means customers get more power per dollar, making even lower pricing acceptable.
✅ 5. Fierce Domestic Competition
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With numerous manufacturers competing for orders, intense price wars naturally drive panel prices down.
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Ironically, this internal competition pushes factories to be more efficient and cost-effective.
✅ 6. Favorable Export Conditions (Currency + Tax Rebates)
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Export tax rebates reduce the overall tax burden.
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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.