Report Overview

Increasing demand for energy, growing electric vehicle sales, and government and private investment are all factors fueling the growth of the China solar energy market. Furthermore, favorable subsidy programs and initiatives from the government have also contributed to the growth of the Chinese solar energy market.

China Solar Energy Market - Industry Trends & Forecast Report 2028

China solar energy market is projected to grow at a CAGR of 12% during the forecast period, i.e., 2022-2028 on account of the increasing sales of electric vehicles, rising energy demand, and growing investment from both private and government companies. Additionally, favorable subsidy programs and initiatives from the government also support the growth of the China solar energy market.

Solar Energy- A Brief Overview

In general, solar energy refers to the radiant heat from the sun captured and used in a variety of ways, such as for creating electricity, or for generating solar thermal energy including solar water heating, and solar architecture. Solar energy provides clean, affordable, and emission-free energy with endless potential. Tax breaks and cash incentives are also available in many countries, and the government is also encouraging the installation of solar energy due to its many benefits.

China Solar Energy Market Trend

Growth Drivers

Increasing Concerns Related to Carbon Emission

The issue of carbon emission is one of the major issues of the present time, with countries striving to reduce their carbon emissions and move toward carbon neutrality. As part of its target to achieve carbon neutrality by 2060, China is investing heavily in renewable energy sources like solar power. Moreover, China intends to reduce its dependency on fossil fuels to less than 20% by 2060 and reach its peak carbon emission by 2030. China also plans to meet 80% of its total energy needs with renewable sources, favoring investment in renewable energy sources and driving the growth of China's solar energy market.

Growing Electric Vehicle Sales in the Country

Electric vehicles (EVs) have registered exponential growth in recent years with sales touching new heights every year. According to the International Council on Clean Transport (ICCT), China is one of the largest EV markets in the world with a total fleet of around 5 million electric vehicles on road currently. China's EV fleet has grown by 250% in the last decade. In addition, the government has mandated that by 2030, EVs must account for 40% of total vehicles manufactured in the country. The growing sales of EVs in the country mean that demand for charging infrastructure will gone up, resulting in heavy investment in solar energy. Therefore, the growing sales of EVs in the country will likely drive the growth of China solar energy market in the foreseeable future.

Impact of COVID-19

The COVID-19 pandemic originated in China and affected the entire world. China was the first country to announce a lockdown and was also the first country to come out of the lockdown. The country registered a 60% increase in solar installations in 2020 compared to 2019. The National Energy Administration (NEA) reported that China will continue to install 54.9 GW of solar energy by 2121, a 14.4% increase from 2020, bringing the total installed capacity of solar energy to 306.56 GW. Currently, China has enough solar power to power all of Germany. In the coming years, solar energy investments are expected to grow further as the country strives to move away from coal and other fossil fuels and meet the targets of the Paris Agreement.
 

China Solar Energy Market: By Application

China solar energy market is bifurcated into residential, industrial, and commercial segments, based on applications. In 2021, the industrial segment accounted for the largest share and dominated the market; however, the residential segment is expected to register the highest growth rate during the forecast period owing to the consistently reducing cost of PV-systems and growing sales of electric vehicles, which is encouraging homeowners to installs PV-systems to charge the vehicles. According to the China National Energy Administration, the country installed a record number of rooftop solar panels in 2021 with a total capacity reaching 29 GW. The total rooftop solar panel capacity in China has reached 108 GW, more than any other country.

Competitive Landscape

Some of the dominant players operating in China solar energy market are Zhejiang Chint Electrics Co. Ltd., State Power Investment Corporation, and China Datang Corporation. Other major players in China solar energy market are JA Solar Holdings Co., Ltd., Hanwha SolarOne, Ltd., Trina Solar Ltd., Yingli Green Energy Holding Co Ltd.,, China Three Gorges Corporation, GCL-Poly Energy Holdings Limited, ShunFeng International Clean Energy Limited, and other prominent players.

The increasing government initiatives to install solar energy plants across the region and achieve net-zero emission by 2060 have boosted the market’s competition. Additionally, the Chinese government is collaborating with foreign companies to commission and install new projects, increasing competition in the market.

Recent Developments

• In January 2022, Huhtamaki China installed and commissioned its first solar panel arrays at its factories in Guangzhou and Shanghai and successfully connected these to the electricity grid on January 1, 2022. By installing solar panels, the two factories will reduce their energy consumption by 10% and their carbon dioxide emissions by 2,374 tons per year.
• In December 2021, Risen Energy Co., a developer, manufacturer, and supplier of photovoltaic applications in China, announced its plans to invest USD 7 billion in a solar power plant complex in the Northern region that will run on clean energy. The factory is aiming to deliver 200,000 tonnes of industrial silicon,150,000 tonnes of polysilicon, 10 GW of solar cells, and 3 GW of modules on a yearly basis.

Scope of the Report:

By Technology

• Photovoltaic Systems
• Concentrated Solar Power Systems

By Solar Module

• Monocrystalline
• Polycrystalline
• Cadmium Telluride
• Amorphous Silicon Cells
• Others

By Application

• Industrial
• Commercial
• Residential

By End-User Industry

• Electricity Generation
• Heating
• Charging and Lighting