Is open trade a key factor in achieving low-cost solar photovoltaic supply chains?

Our results highlight that an open trade policy is key to minimizing costs, even when considering security and environmental supply chain objectives. Cui et al. find that open trade policy is a key factor for achieving low-cost solar photovoltaic supply chains.

What role will China play in the solar PV supply chain?

However, irrespective of European regional goals, China will maintain a predominant role in the solar PV supply chain due to the advantages of manufacturing capacity and costs, and the need to expand global capacity by over 1.5 times.

Why is solar PV a low-carbon technology?

Another factor in solar PV’s popularity as a low-carbon technology is its market potential. The total value of global solar PV trade is valued at ~40 billion United States dollars (USD) per year—but to meet net-zero goals, the rate of annual solar PV additions must more than quadruple 4.

What does Europe mean in a solar PV supply chain?

In the main text, Europe (EUR) indicates the region that includes Germany, Switzerland, and ROE. Each region is modeled as a node with PV demand, production capacity, and production costs. The supply chain itself considers the production of solar PV’s five main components: polysilicon, ingots, wafers, cells, and modules.

Can Europe regain a missed opportunity with a solar PV supply chain?

Building up the solar PV supply chain can also be seen as a chance for Europe to regain a missed opportunity: the initial wave of solar PV adoption was led by European demand and, for a time, Germany's manufacturing was a competitive supplier 4.

How can subsidies help a solar PV industry in Europe?

In Europe, supporting local solar PV manufacturing through subsidies or investment can improve competitiveness, create jobs, and increase self-reliance. Compared to trade barriers on China, subsidies can cut industry expenses by 23.6%, create jobs 27.5% more cost-efficiently, and provide a similar gain in self-sufficiency.