Global PV Manufacturing Attractiveness Index 2015 (PVMAX)

Report summary

The global solar market has grown accustomed to a persistent oversupply of PV modules. But, two factors are changing that. First, consolidation and facility closures tightened the supply picture as module prices fell in 2012-2014. Second, global PV demand is expected to increase substantially over the next five years, leading to a 135 GW market in 2020. Even when accounting for already-planned module capacity additions, this could lead to a supply crunch toward the end of the decade, suggesting an opportunity for module suppliers to further expand production.

The most attractive countries for manufacturing have historically been the ones most competitive on all-in costs. This is now changing. Ready access to the most sizable demand has become a more pressing priority. Moving beyond input-driven cost reductions, manufacturers are also focusing on technology innovation to reduce production costs, as well as to improve module efficiencies. They are much more interested in understanding the kind of manufacturing support they can get from a country. A healthy business environment that can ease new plant development is also being considered more favorably.

This report provides a PV manufacturing attractiveness index (PVMAX) for countries around the world, factoring in criteria fundamental to the solar industry as well as pertaining to the broader manufacturing ecosystem. It is meant to help manufacturers select their next site and enable countries to improve their standing. The index focuses on a shortlist of 50 countries selected on the basis of demand availability and experience with high-tech manufacturing. These 50 countries have been assessed for PV manufacturing attractiveness based on their business environment, access to demand, PV manufacturing, and all-in costs.