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This article was first published 13 years ago

Solar energy market: China much ahead of others

Last updated on: September 15, 2011 14:50 IST

Image: A worker builds a solar panel in a factory in Sainte Marguerite, Eastern France.
Photographs: Philippe Wojazer/Reuters Lalit K Jha in Washington

Despite efforts by countries like US, India and Britain, China is marching well ahead of all of them when it comes to capturing the solar market, a top American energy official has said.

China's solar energy budget still stands roughly 20 times larger than America's investment in the same period, Jonathan Silver, executive director, Department of Energy told US lawmakers on Saturday.

. . .

Solar energy market: China much ahead of others

Image: Solar panels are seen in the parking lot of a 1929 building in Los Angeles.
Photographs: Lucy Nicholson/Reuters

"Germany and Canada already operate government-backed clean energy lending programs.

"The UK, Australia and India have announced the intent to do the same.

"But none have been as aggressive as the Chinese government, which last year alone provided more than $30 billion in credit to its country's largest solar manufacturers," he said.

. . .

Solar energy market: China much ahead of others

Image: The Heliodome, a bioclimatic solar house is seen in Cosswiller in the Alsacian countryside, France.
Photographs: Vincent Kessler/Reuters

"Why is China making this investment? Because the race for solar manufacturing jobs is a race worth winning. Over the next few decades, this will become a global market worth trillions of dollars," Silver said.

The scenario has witnessed a complete turnaround with US share in solar cell manufacturing, which stood at 40 per cent till 1995, being toppled by China which has increased its holding to 54 per cent from 6 per cent in 2005.

Surprisingly, US hold on the market has reduced to a meagre 6 per cent.

. . .

Solar energy market: China much ahead of others

Image: A worker checks solar panels at a solar power field in Kawasaki.
Photographs: Toru Hanai/Reuters

"China is now home to five of the 10 largest solar panel manufacturers in the world while only two of them are in the US," Silver said, adding that the country has produced and provided a wide array of additional support facilities to support growth of the sector.

China, he said, has focused on the market segment in parts because it's very cost-effective way to mass-produce those panels with the funding of China Development Bank and other smaller banks.

. . .

Solar energy market: China much ahead of others

Image: A waitress works under a roof covered in solar panels at China's 1st solar-powered hotel in Boading.
Photographs: David Gray/Reuters

Availability of cheap labour has also backed country's rapid growth in the sector.

Underlining need for US to bounce back with sincere efforts, Silver said US should not just set its focus on China but take it as a global challenge in view of the importance and the viability of this space.

"There will only be one opportunity for us to become a winner here, and if we miss that window, we will have missed a multi- trillion-dollar market," Silver said.

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