China-Europe Photovoltaic Power Storage

Chinese-manufactured solar photovoltaic (PV) panels are piling up in European warehouses, with Rystad Energy forecasting 100 GWdc of solar capacity in storage by the end of 2023.

This is due to lower production costs in China and the EU's decision to lift tariffs on Chinese solar panels in 2018. According to Eurostat data, a staggering 98% of solar panels imported into the EU in 2023 came from China. In monetary terms, the EU imported €19.7 billion worth of solar PV panels from China in 2023.

There are currently over 40GW of Chinese-made solar modules in storage across Europe with a cumulative value of around €7 billion (US$7.8 billion).

According to the International Energy Agency (IEA), production costs for solar PV panels in China are 35-65% lower than in the EU. Manufacturing of integrated cells and modules in the EU is estimated to be 70-105% more expensive than in China, largely due to higher capital expenditure (CapEx) and operating costs.

As global PV supply has concentrated in China over recent years – stemming from polysilicon production- – Chinese manufacturers have been able to lower prices and dominate the market despite Europe's goals to establish a domestic manufacturing base.

The EU imported €19.7 billion worth of solar photovoltaic panels from China in 2023. In 2023, the EU imported €19.7 billion worth of solar panels, €3.9 billion of liquid biofuels, and €0.3 billion worth of wind turbines from extra-EU countries, according to the Eurostat data.