• Fuel report

• Dec 2022

Will new PV manufacturing policies in the United States, India and the European Union create global PV supply diversification?

…with achieved production, the IRA provides a PTCs for the manufacturing of certain equipment, including solar PV modules, cells, wafers and polysilicon through 2032.According to estimates, PLI support closes nearly 80% of the investment cost gap between India and the lowest-cost manufacturers in China. However, the one-time subsidy means that manufacturing efficiencies will need to be achieved through economies of scale to maintain long-term competitiveness. Meanwhile, fully monetising manufacturing tax credits in the United States could bring all the country’s segments of solar PV manufacturing to cost parity with the lowest-cost manufacturers. Favourable solar…