China’s solar production costs down 42%

The Asian manufacturing powerhouse holds 80% of the global manufacturing capacity.

Solar production costs in China have reached $0.15 power watt in 2023, declining by 42% year-on-year, providing manufacturers in the country with a cost advantage, according to a report by Wood Mackenzie. 

In a statement, Wood Mackenzie said the United States and Europe could not compete with China given the manufacturing powerhouses’ advantage.

In India, solar production prices as of December 2023 were at $0.22 per watt, slightly higher than in China, whilst costs in Europe and the United States were at $0.30 and $0.40 per watt, respectively.

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“As the world’s solar module powerhouse, China commands 80% of global manufacturing capacity and this is being reflected in soaring domestic installations. This year its domestic solar additions will be double those of the US and the EU combined,” the report read.

Wood Mackenzie added that renewable installation continues to accelerate globally, led by wind and solar. It expects that by 2050, the sector will comprise over 50% of the global supply.