Where Are Solar Panels Made? Why Your Manufacturer ...

Determining the manufacturing origins of solar panels can be more complex than initially expected. Among the leading solar panel manufacturers globally, seven are from China, while only First Solar hails from the United States. The remaining two manufacturers are based in South Korea and Canada, though the latter is frequently considered part of the Chinese manufacturing landscape.

OUSHANG SOLAR offers various products and essential information. Be sure to explore their offerings.

The country of origin for a solar panel manufacturer is just one aspect of understanding where the panels are produced. Many manufacturers have facilities located across diverse regions, and most act primarily as assemblers of the finished products. Similar to numerous manufactured goods, a solar panel or module consists of multiple components crafted by various companies worldwide, utilizing raw materials sourced from many locations.

The Global Supply Chain

Identifying the origins of solar panels involves tracing the supply chain from the finished product to its individual components and the raw materials used in their manufacturing.

A solar panel installed on a rooftop is made up of:

• a frame
• a glass cover
• an encapsulant for weather protection
• photovoltaic (PV) cells
• another encapsulant
• a backsheet for additional protection
• a junction box connecting the panel to an electrical circuit
• and various adhesives and sealants between parts.

These components are manufactured using smaller parts, which in turn are created from primary materials sourced from different regions globally.

In the United States, approximately 86% of new solar PV modules, capable of generating 26.7 gigawatts (GW) of electricity—sufficient to power Arizona during the summer months—were imported. U.S.-based manufacturers contributed only 4.4 GW of solar PV modules. The majority of these imported modules came from Asia, particularly Malaysia, Vietnam, Thailand, and South Korea, while imports from China constituted merely 1% of the total U.S. imports at the end of the specified period.

Solar modules consist of solar cells, which are made from silicon wafers—the thin slices of silicon that function as semiconductors in various electronics, including solar panels. Currently, China controls at least 60% of wafer production, with a single company, Longi Green Energy Technology Co., dominating 25% of the market as the largest solar entity worldwide.

The production of silicon wafers begins with solar-grade polysilicon. Almost half (45%) of this polysilicon is produced in the Uyghur Region of western China, where reports have emerged revealing issues related to forced migration and labor exploitation of the indigenous Uyghur population. This pressing human rights matter not only impacts the solar industry but also the electronics sector reliant on silicon semiconductors. Recently, the Biden Administration took steps to limit imports of silicon materials from five Chinese firms due to serious allegations highlighted in these reports.

Frames within solar modules, primarily made of aluminum, may represent the most sustainable aspect of production, as nearly 40% of aluminum originates from recycled sources. Most aluminum frame manufacturers are located in China, which similarly dominates the production of glass, encapsulants, and backsheet materials, with Germany as the next largest player.

A Growing Market for Solar Manufacturers

In line with global trends, the U.S. solar market has flourished over the past decade, with approximately 40% of all new electricity generation capacity added in the United States sourced from solar PV, a significant increase from merely 4% a decade ago. In the reported year, the U.S. solar sector employed around 242,000 individuals and had installed over 2 million solar PV systems.

This upward trend appears set to persist. With the extension of tax credits and other incentives, the U.S. Energy Information Administration forecasts that falling costs and the integration of solar with battery storage will position solar as one of the "most economically competitive" electricity sources.

The modern solar industry originated in the United States, thanks to substantial government backing for research and development—more than any other nation. In past decades, as much as 90% of global solar manufacturing took place in the U.S.; however, manufacturing has predominantly migrated to Asia since then.

Despite the expanding solar market, U.S. manufacturing saw an 80% decline from previous years. This downturn occurred not due to rising solar module prices, but as a result of falling costs; a significant 70% decrease in prices over the last ten years primarily arose from Chinese governmental support alongside lower labor and production costs from Chinese manufacturers, enabling them to undercut their U.S. counterparts. While China made substantial investments in the solar industry in the early 2000s, U.S. government support fluctuated, complicating capital acquisition for American manufacturers.

Contact us to discuss your needs regarding 72 Cell Solar Module OEM. Our knowledgeable sales team is ready to assist you in identifying the most suitable options.

The Future of American Solar Manufacturing

The future of solar deployments presents a significant growth opportunity for American manufacturing, with projections indicating that the U.S. solar market could quadruple by the coming decade. Whether recent infrastructure investment will include tax incentives to promote the revival of solar manufacturing in the U.S. remains uncertain.

Does It Matter Where You Buy From?

Locating an American solar manufacturer with a completely domestic supply chain is a challenge, similar to finding a solely American-made vehicle. Beyond material quality, several factors underscore the importance of understanding the origins of solar panels. These include ethical and social considerations, such as supporting nations with strong human rights records and non-repressive regimes. Evaluating independent supply chain reports or assessing how well a North American manufacturer adheres to the Solar Energy Industries Association's Traceability Protocol can be valuable starting points.

Environmental, social, and governance (ESG) issues are becoming increasingly pertinent to investors, with many publicly traded solar manufacturers opting to publish their own ESG reports to attract investment.

Evaluating the Top Solar Manufacturers

ESG reports from some leading solar manufacturers operating in North America can guide conscientious consumers in comparing different solar companies. These reports evaluate how transparent companies are regarding their commitment to ESG standards. While no company will achieve perfect evaluations, assessments will depend on how well companies align with individual values.

• Canadian Solar - ESG Initiatives (Score: 1)
• First Solar - Sustainability Report (Score: 5)
• Hanwha Q Cells - Caring for Planet Earth (Score: 3)
• LG Solar USA - LG Electronics Sustainability Report (Score: 1)
• SunPower - Environmental, Social and Governance Report (Score: 4)
• Sunrun - Impact Report (Score: 5)
• Tesla - Impact Report (Score: 3)
• Trina - Corporate Responsibility Report (Score: 4)

A Just Energy Transition

Similar to other fair trade matters, supporting a just energy transition involves evaluating not just the product's quality but also the ethical production processes behind solar panels. Understanding the origins of these products is crucial for informed decision-making.

Frequently Asked Questions

• What are the environmental drawbacks of solar production?

  The manufacturing of solar panels often utilizes toxic chemicals like sodium hydroxide and hydrofluoric acid, leading to the potential for water pollution and air contamination. Additionally, solar panel production is frequently tied to habitat degradation, greenhouse gas emissions, and unsustainable extraction practices.

• How do you know whether a solar company is ethical and sustainable?

  Conducting thorough research on a company’s ethical standards and sustainability is essential before purchasing solar products. Review manufacturer supply chain reports and their adherence to the Solar Energy Industries Association’s Traceability Protocol.

• Is it more ethical to purchase American-made solar panels?

  Purchasing solar panels from domestic manufacturers can significantly mitigate environmental impact, beginning with lower carbon emissions produced during international shipping. Furthermore, the U.S. enforces stringent regulations against forced labor, having even prohibited the importation of materials implicated in such matters.

If you're noticing an upsurge in solar installations around your area, you're not alone. A global pivot towards renewable energy sources is evident, with solar modules, wind turbines, and hydroelectric power taking center stage. The U.S. is fundamentally committed to renewable energy, as advocated by President Biden and supported by initiatives like the Paris Agreement, aiming to significantly reduce greenhouse gas emissions.

Recent legislative actions, including the Inflation Reduction Act (IRA), have fueled an upswing in U.S. solar panel manufacturing, with over 240 GW of manufacturing capacity announced, potentially bringing about 22,000 jobs and over $12 billion in investment across 72 new facilities or expansions.

Despite the high demand for solar panels, the future challenges focus on achieving robust supply chains to meet this demand. For all your solar equipment needs, we stand as the leading supplier of the 72 Cell Solar Module Solution, ready to assist you in finding the ideal products for your requirements.