Chinese manufacturers 'making solar cheaper for everyone'

18th Oct 2012

The sheer volume of Chinese solar power products hitting the market is helping to bring the price of renewable down for everyone.

Or so say industry experts, who claim the country's prolific output is allowing consumers to buy solar energy systems at a price not seen before.

Kobad Bhavnagri of Bloomberg New Energy Finance told the Sydney Morning Herald that the global impact of China's manufacturing machine is highly visible.

"The price of PV modules has fallen by 75 per cent since 2008 and some 45 per cent in 2011," the clean-energy analyst. "Every time global production of PV modules has doubled, the cost has fallen by 24 per cent."

And it doesn't stop there. He claimed that China is also responsible for 60 per cent of all solar cells manufactured worldwide.

Global solar capacity has tripled in the last three years, Bhavnagri stated, with almost all of that growth being Chinese-led.

This dominance was apparently evident at a recent All-Energy exhibition in Melbourne.

According to the Herald, Chinese firms were restricted to just 20 per cent of the available 274 booths – purely to give other businesses a chance!

Julie Peng, sales manager at machinery maker Sinomach's solar arm, said China's market for clean technology products is stronger than ever.

"Maybe 80 per cent [of solar PV panels], including those distributed by others, is from China," she explained, noting 80 per cent of her company's sales are from exports.

So what do Chinese firms predict for the Australian market? Well, they admit that recent declines in rebates for feed-in tariff schemes could act as a drag on solar power expansion.

For example, Victoria's generous 60 cents per kilowatt hour offering has been reduced twice in recent times, with the state's government firstly shaving off 35 cents to 25 cents – before bringing it all the way down to eight cents.

But, according to Chinese exhibitors, this isn't a problem that can't be fixed by solar PV's spiralling costs.

They predicted that wholesale prices of approximately 70 cents per watt would tempt the 90 per cent of Aussies without solar PV to consider buying. 

Bhavnagri said that the solar industry could be in for a shake-up, with some firms likely to go out of business – similar to the US automotive car industry of the 1900s, where hundreds of suppliers dwindled to just three.

However, he said: "We've seen a wonderful trend of technology costs coming down and they will keep on coming down."

Posted by Mike Peacock

All solar power news categories

Government Rebate & Regulations
Solar Power & Technology


More Solar Power & Technology

Australia to be a part of huge Asian renewable energy growth
SunPower steps up to make solar more affordable
Canberra makes strides toward carbon neutrality
GTM puts solar's massive growth in perspective
Examining Australia's falling solar PV rooftop prices
Australia's shift toward renewable energy picks up the pace
Australia shines at solar decathlon
University of Queensland tapped as lead researcher on massive solar project
100 per cent renewable energy is possible in 10 years, environmental group says
Climate Commission releases report on solar progress
Aussie government actually shows spine for solar power
Be gone, skeptics: One million solar installations and counting
Australia embarks on its greatest solar journey ever
Australia looks to solar thermal for commercial success
Solar power helps King Island reach 100% sustainability
Australians 'heavy supporters of solar power'
Mildura solar plant officially unveiled
Solar power trumps other renewables in Australian minds
Sunshine Coast solar farm "fantastic initiative"
Sunshine Coast cashes in on namesake with solar plans
Energy storage 'could maximise solar power utility'
Solar powered family car - a world first?
Code of conduct for solar installers in the works
'Stop punishing households' for solar PV
Australian solar companies 'adjusting well'
Australian mining 'next solar frontier'
"Rooftop revolution" underway across Australia
Global PV market emerging from sluggish period
Royalla solar farm receives final approval
Leadership challenge a "debacle" for Australian solar power
Solar power giving global renewables a helping hand
Australia's largest CPV solar power plant up and running
Renewable energy misinformation "staggering"
CEC: Don't underestimate consumer desire for solar
Setting energy efficient examples on TV
Solar PV brightening up household bills
World's largest solar powered boat on the move
Climate change is heating up
The global solar power shift
New solar tech win for NSW
Industry orgs praise City of Sydney solar efforts
Clean Energy Council supports Regional Renewables scheme
Asian nations emerging as PV leaders
Solar PV demand continues to grow
Regional areas of Australia to receive more renewables
Australia's significant renewable energy growth
Solar panel reprieve for Queensland
New funding for solar research
Find love with sustainable speed dating
New Victorian solar power deal
 To get your quotes, please enter your postcode: