In September 2024, China exported approximately 6.8GW of photovoltaic modules to the European market, marking a 17% decrease from the 8.21GW exported in August and an 11% drop from 7.64GW in September last year. Over the third quarter of this year, China’s total photovoltaic module exports to Europe reached 23.53GW, a 23% decrease from the 30.47GW exported in the second quarter. However, this represents a 3% increase from the 22.92GW in the same period last year. From January to September 2024, the cumulative export volume to the European market stood at around 77.7GW, a 9% decrease from 85.33GW during the same period last year.

The decrease in exports can be attributed to various factors affecting the solar energy system market. In the third quarter, Europe faced an overproduction of photovoltaic power during the summer months, leading to an imbalance between supply and demand. This imbalance negatively impacted short-term profits for solar power generators. Additionally, the installation pace of new photovoltaic systems slowed down during the summer vacation period.

Challenges in Key European Markets

Several key European countries are facing economic and political challenges that could further impact the solar energy system market. Germany, for instance, is dealing with the possibility of two consecutive years of economic recession. In France, political opposition is hindering the introduction of demand-friendly policies, which affects the division of fiscal budgets for renewable energy projects. Other European nations have not yet implemented significant stimulus policies, which may slow down growth in the photovoltaic sector.

Moreover, with the European solar energy system installations likely to slow down in the fourth quarter, as many projects may be completed by mid-to-late November, the demand for photovoltaic systems in Europe could experience negative growth by the end of this year.

Looking Ahead: Opportunities for Growth in 2025

Despite these challenges, there are signs of recovery and growth in the solar energy system market for 2025. Centralized photovoltaic projects in Spain, which were delayed this year, are expected to come online in the first half of next year. Additionally, emerging markets in Eastern Europe are showing increased demand for solar energy systems. These factors are expected to contribute to a recovery in European demand for photovoltaic modules.

If major European countries can expand their photovoltaic development initiatives at the current demand levels, Europe’s solar energy system market may experience growth in the coming year.

As a result of these supportive policies, the installed capacity of solar power in the United States has been steadily increasing. According to the Solar Energy Industries Association (SEIA), the cumulative installed capacity of solar panels in the U.S. reached 179 GW in 2023, reflecting an average growth rate of 22% over the past decade.

On the manufacturing front, the Inflation Reduction Act has played a crucial role in stimulating the development of local solar panel production. The capacity for manufacturing solar panels in the U.S. has grown significantly, from 8 GW in 2022 to more than 12 GW in 2023. By 2026, domestic solar panel production capacity in the United States is expected to reach 123 GW, marking a significant step toward achieving energy independence and sustainability.

However, despite the growing investment and production capacity, the U.S. solar industry faces several challenges. Issues such as financing difficulties, limited manufacturing experience, intense market competition, technological hurdles, and raw material shortages make it challenging to fully implement new production capacities. These barriers must be addressed to ensure the continued growth and success of the solar panel industry in the United States.