Bright forecast for global solar panel market

The Paris Agreement ratified by 177 countries in New York last month promises to have a profound effect on how the world does business. The specifics of how things will change remain unknown but it seems clear that there will be a major role for renewable energy, especially solar panels (also known as PV or photovoltaics).

For such a young industry the photovoltaics industry has undergone immense changes since their invention in the 1950s.

China leads the pack as of 2015 when it comes to installed capacity at 43.530 MW followed by Germany (39,700 MW), Japan (34,410 MW) and the US (25,620 MW).

Unsurprisingly, those countries also rank near the top in terms of the manufacture of photovoltaic panels. That’s because solar panels have traditionally been built in the country where they are sold. Both transport and labour costs are a relatively small part of production costs (1%-3% and <10% respectively) so offshoring and managing global supply chains hasn’t always made a lot of financial sense, especially when Chinese products in particular faced quotas in Europe and tariff duties in the US.

But that’s changing, and the Paris Agreement should accelerate that change. Already we’ve seen the growth of Malaysia as key global manufacturer (now third globally behind China and the EU) despite the absence of strong local demand and the emergence of a global market that increasingly favours large, well-managed multinationals with complicated supply chains.

This is where DS Smith’s packaging strategists can really bring added value to the global PV industry. With relatively heavy and sensitive materials to transport (wafers, inverters, photovoltaic elements and solar panels) there is a need for packaging that provides sufficient protection but with a minimum of material. That demands the innovative design and materials used by DS Smith’s packaging strategists. To learn more about how our experts can help please visit our Electronics website.