So, Where are Solar Panels Manufactured

Take a look at any hardware review on Youtube. You’re almost guaranteed to find a number of comments that go like – “yes, yes, but where’s it made?” flooding the comments section. China Inc’s reputation has plummeted drastically in the wake of the coronavirus pandemic. Chinese hardware had a reputation for being cheap and unreliable before.

Now with anti-China opinion at its highest since the Tiananmen Square massacre, many are becoming more discerning with their buying decisions. Today, merely 15% Australians hold a favorable opinion of China compared to 64% just three years ago according to a Pew Global Attitude survey.

Obviously, the same sentiment has carried over to the renewable energy sector as well. After all, most solar panels carry a “made in China” tag. So, what does it mean for people interested in purchasing solar power systems?

Are Chinese solar panels really as unreliable as they are claimed to be? What if you want to buy from other manufacturers? Let’s take a good, wide look at your options here.

The Chinese Solar Industry at a Glance

As of now, nearly two-thirds of all solar equipment is manufactured in China. Even most of the top ten list of the best solar manufacturers are dominated by Chinese manufacturers. But, how did China become so successful in solar power?

Firstly, China had made a huge push for renewable energy long before it became popular. Way back in 1990, demand for solar power in Germany had begun to surge following strong government incentives. While China only saw solar power as a means to power small rural areas until that point, the uptick in demand from Germany fueled manufacturing interest.

Chinese manufacturers started to invite experts in solar power from around the world and began to invest heavily in solar power. In 2009, the Chinese government declared solar power as a strategic state interest and began offering support to the solar industry through debt and subsidy models. Fueled by both domestic and international demand, the Chinese solar industry grew by leaps and bounds.

In 2010, four out of the top 10 solar manufacturers were Chinese companies. And by 2013, enough manufacturing capacity had been built in China to bring down the cost of solar power by a whopping 80%. As much as 98% of Chinese solar cells were being exported overseas.

Much of China’s success in solar manufacturing owes to its already strong industrial base. As the go-to manufacturing hub for the world, China had proven business models and infrastructure that drove its solar success story.

Are all Chinese Solar Cheap and Low-Quality

Simply put — no. Products from China are like products from any other place. Sure, there are a lot of low quality suppliers, but there are a number of fine manufacturers offering stellar products as well.

Part of the reason why there’s so much distrust against Chinese solar panels is because China itself is a closed society. We rarely hear what’s going on there, and, when we do, it’s usually always bad news.

Since we typically equate low quality with low prices, we need to understand how China manages to keep the cost of otherwise expensive solar panels down. The general opinion is that Chinese manufacturers use China’s abundant human resources to keep their costs down. But, this isn’t entirely true.

A study by the Royal Society of Chemistry journal Energy and Environmental Science found that economies of scale resulting from a large manufacturing base was the primary driver for low cost photovoltaic systems coming out of China. The study also found that the advantages of cheap labour in China were being undermined by local, state-level influences.

Even if we take a closer, objective look at the Global solar industry at large, the performance of Chinese modules speak for themselves. Here’s a list of Tier-1 solar panels. As can be seen, it’s almost entirely dominated by Chinese manufacturers.

However, while panels from these manufacturers are tried and tested, do keep in mind that “tier-1” itself is not a catchall waver. As we covered in our article on failing solar installations, tier-1 lists are many and tend to change over time.

So, What are Your Choices?

Clearly, you can get very good quality made in China panels. You can either do some research to find the most cost effective panels from tier-1 manufacturers, or ask your installer to make recommendations. Simply sticking with panels from popular manufacturers is a good way to sidestep the fluff.

But, it’s entirely possible you may have concerns besides quality and price too. Many people are concerned about the Chinese government’s overbearing methods and poor human rights record.

The CCP’s crackdown on Hong Kong, verbal tete-a-tete with Australia, border skirmishes with India and their wolf-warrior diplomacy throughout the world has left a bad taste in many mouths.

Consequently, many people have become wary of fueling the ambitions of an authoritarian regime by buying stuff from China. Unfortunately, there’s no way to buy a solar power system that doesn’t have at least some parts that are made in China.

But, you can certainly go for solar panels from manufacturers in other countries. For example, LG Neon line of solar panels are made in South Korea. Likewise, the German company Q Cell’s Duo+ panels are assembled in South Korea as well. Solar Watts is another German company offering outstanding panels that are made in the EU.

Regardless of whether you want Chinese or non-Chinese panels, you do have options to choose from. The tricky part is knowing how to navigate the complex labyrinth of different solar components to find the best balance between price, performance and place of origin.

While you can certainly go it alone, bidmysolar™ can help you design the best solar power system for your requirements, regardless of what they are. We only work with the best, most reputed installers that are Clean Energy Council (CEC) approved. Check out our process or contact us if you have any questions.