Global PV Manufacturing Attractiveness Index 2015 (PVMAX)

by Mohit Anand

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.

Global PVMAX Top 10 Country Rankings

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.

Other countries covered include (not a comprehensive list):

Australia | Brazil | Egypt | Indonesia | Japan | Mexico | The Netherlands | Poland | Portugal | Romania | Saudi Arabia | South Africa | Spain | Turkey | Vietnam

Mohit Anand Senior Analyst, Solar

Mohit Anand is a Senior Analyst at GTM Research covering global solar markets. With previous experience covering demand dynamics and business strategies in emerging markets like India, Mohit analyzes the market fundamentals, government policies, risks, and competitive strategies that determine the success of solar players globally. Before joining GTM Research, he participated in the early stages of growth of the Indian solar industry by setting up a solar market intelligence team, advising project developers on new solar business models, and consulting for international solar companies on their market success strategies. Mohit holds a bachelor’s degree in economics from St. Xavier’s College, Mumbai, a master’s degree in international studies from the National University of Singapore, and a master’s degree in public administration from the Kennedy School of Government at Harvard University.

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