Understanding the global solar panel supply chain — from raw materials to final assembly. Learn where components originate and what this means for the industry.
Felix Rusby
When examining where solar panels come from, we need to consider two questions: where do the raw materials originate, and where does final assembly occur? The answer to both is predominantly China — according to the IEA's 2022 report, China dominates every stage of the global solar supply chain.
Silicon comprises 75-85% of solar panels and is the most critical component. China produces 83% of global polysilicon, with 45% coming from Xinjiang alone. Germany produces 6.9% and the USA produces 6.1%.
Solar panel glass is produced globally from silica sand. China leads production with 64,000 metric tons per day capacity as of 2022. The Asia-Pacific region represents the fastest-growing market.
Used for panel frames, aluminium production is heavily concentrated in China, which controls 60% of primary production. Europe has lost over 65% of its aluminium production capacity in recent years.
This encapsulant material protects solar cells. The Asia-Pacific market currently represents 65% of global EVA production. It's derived from crude oil and natural gas.
Essential for wiring and heat exchangers, copper is one area where production is more distributed. Chile leads global production with over 5.8 million metric tons annually.
Solar panels consumed 13.8% of total silver usage in 2023, predicted to reach 20% by 2030. Mexico produces 25% of global silver supply.
Made from polymer combinations, back sheets are produced across China, Vietnam, India, the US, and Europe — one of the more geographically distributed components.
China is the world's largest manufacturer and assembler of solar panels, producing 52% of global output. Major companies include:
Production centres are concentrated in Jiangsu, Zhejiang, Anhui, and Guangdong provinces.
US-based manufacturers include First Solar, Qcells, Silfab Solar, SunPower, and Tesla's SolarCity. Facilities operate in California, Ohio, and Arizona. Some operations are entirely US-based without Chinese materials.
German manufacturing includes SolarWorld (now a SunPower subsidiary) with facilities in Freiberg and Bitterfeld-Wolfen.
Domestic UK manufacturing is extremely limited. Only GB-Sol currently holds Made in Britain verification, operating facilities in South Wales. Most UK-associated manufacturers outsource production internationally.
Evidence suggests forced labour in Xinjiang's polysilicon production facilities. Similar concerns exist regarding cobalt mining for battery storage systems. These issues have prompted some buyers to seek verified ethical supply chains.
Coal generates over 60% of the electricity used for global solar PV manufacturing. Manufacturing has contributed approximately 51,900 kilotonnes of carbon dioxide over the past decade, with China accounting for 87% of these emissions.
However, context matters: solar panels produce 20 times less carbon emissions than coal-generated electricity over their lifetime.
China's market dominance creates supply chain vulnerabilities and potential price control risks. This concentration can disadvantage smaller domestic manufacturers and creates geopolitical dependencies.
Truly localised solar panel production remains rare. Rather than focusing solely on manufacturing origin, consumers and installers should evaluate:
Supporting manufacturers committed to supply chain transparency helps drive industry-wide improvements regardless of production location.
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