Chinese Solar PV Factories Operating At High Level

• China exported 320 GW worth of solar PV cells during 8M/2023, according to the MIIT  
• Its wafer, cell and module exports added up to $36.17 billion during the period 
• Polysilicon production in July 2023 and August 2023 was a total of 233,500 tons 

During 8M/2023 period, Chinese exports of crystalline silicon solar cells exceeded 320 GW, according to the country's Ministry of Industry and Information Technology (MIIT). Overall, China exported $36.17 billion worth of solar wafers, cells and modules during the period, reflecting an annual increase of 1.1%. 

In comparison, during H1/2023, there was an 11.6% annual increase in the country's export volume of PV products with a total of $28.92 billion (see Chinese Solar PV Industry's Output Growing). The ministry points at the 'obvious' downward trend in prices – something that TaiyangNews is monitoring weekly with Gessey Information Technology (see TaiyangNews PV Price Index—CW39).  

For the months of July 2023 and August 2023, the MIIT counts 93.8% increase YoY in the national output of polysilicon that reached 233,500 tons. 

During the same 2 months, China produced 98.9 GW silicon wafers having grown 84.3% YoY. In terms of solar cells, the production increased 77.9% to 84.7 GW.  

China produced 76.7 GW crystalline silicon solar modules in July and August this year, reflecting an annual increase of close to 77.8%, while it exported 32.7 GW during the reporting period. Solar module exports improved 11.2% YoY.  

"According to the photovoltaic industry specification announcement corporate information and industry association estimates, the national polysilicon, silicon wafers, cells, and components output increased year-on-year to close to or exceed 80%," stated the ministry.  

While the MIIT doesn't specify individual production output for the 2 reporting months, according to InfoLink Consulting in August 2023 China manufactured 17.3 GW solar modules. The market intelligence firm believes Chinese solar module exports in 8M/2023 totaled 137.9 GW, of which Europe was the largest buyer at 77.7 GW (see China Shipped 17.3 GW Solar Modules In August 2023).   

Thanks to falling module prices, European warehouses are brimming with Chinese modules. Rystad Energy pegs this inventory to reach 100 GW DC by the end of 2023 even as talk of trade barriers brews in the continent (see SolarPower Europe Against Trade Barriers). 

Drop in module prices is also expected to act as an incentive for one of the world's fastest-growing solar PV markets, India, to procure Chinese modules till March 2024 since the government has exempted project developers from using only domestically produced cells and modules listed under the ALMM. 

At the recently concluded Renewable Energy India Expo 2023, the rumor was that the ALMM exemption may be extended by as much as a year for India to quickly speed up towards its 280 GW solar target for 2030. 

With inventories piling up, InfoLink analysts forecast a slowdown in demand in H2/2023.