When homeowners are considering solar offers on the EnergySage Solar Marketplace, we often hear questions about a solar panel’s manufacturer origin and whether it’s a good idea to choose Chinese panels for an installation. This is a common question as the latest estimates indicate that China is manufacturing roughly 70% of the world’s solar panels today – a dominant market share anda clear indicator of China’s key role in the global solar industry. China has a significant impact over worldwide solar trends likepricing, warranties and manufacturing practices. For example, the 80% decline in worldwide solar prices between 2008 and 2013 occurred largely due to improvements in manufacturing costs in China. And because China is such a major player in solar, many U.S. homeowners are asking “should I choose Chinese solar panels and will it match the quality of other top brands?” In this article we’ll break down pricing, quality and brand influence of Chinese solar panels.
Chinese solar companies vs. Chinese solar manufacturing
Before explaining how Chinese solar panels compare to those made in other nations, it’s important to clarify what “Chinese solar panels” refers to. As explained above, approximately70% of all solar panel equipment is produced in China. But that doesn’t mean that 70% of all solar manufacturers are Chinese companies, justthat the majority of companies around the globe outsource their actual manufacturing to China because production costs are so low. Thus, homeowners shouldthink about what aspect of solar panel production is important to them: where the components are made, where the solar panel is manufactured and/or where the company is headquartered.
For example, Canadian Solar,a popular solar panel companythat is headquartered in Canada, makes its panels in China. So, if you don’t want solar panels manufactured in China, looking to the country of headquartersmay not always be the best indicator.
On the opposite front, there are some manufacturers that are headquartered abroad but make their panels in America.SolarWorld, a leading manufacturer that is known for having some of the most competitiveprices in residential solar, is a German company that outsources its production to the U.S. So when thinking about Chinese solar panels, it depends on what matters most to you: where the panels are physicallymade,where the company is officially headquartered or something else entirely.
Are Chinese solar panels cheaper than other brands? Solar tariff update
Although there isn’t a universal truth when it comes toprice or quality regarding solar panels, it is safe to say that Chinese solar manufacturers typically offer lower prices than other brands because of the incredibly low cost of production in China. This contrast betweenChinese and specifically American solar panelshas recently gotten some media attention following the bankruptcy of U.S. solar maker Suniva. After filing for Chapter 11 bankruptcy in early 2017, Suniva filed a petition with the United States International Trade Commission (USITC) to suggest a hefty tariff be placed on solar panel imports from China.
In short, Suniva claimed that their bankruptcy occurred due tounfair competition. The manufacturer hails from Atlanta, Georgia with production facilities in Georgia and Michigan, and claimed thatlow prices from competitorswho outsource to China and other Asian countriesprevented them from making a profit and staying afloat.
On January 22nd, 2018, the Trump Administration levied a 30% tariff on solar imports to the United States. The tariff covers both imported solar cells, a key input to manufacturing solar panels, and solar modules, otherwise known as solar panels. According to a fact sheet released by the U.S. Trade Representative, this tariff will last for four years and will fall by 5% annually, dropping to a 15% tariff in 2021. To learn more, read our complete analysis of the solar tariff and its expected impact on solar prices.
To get a better sense of what is made where, take a look at the top panel brands, where they’re headquartered, and where their equipmentis actually produced:
Leading solar panel brands: headquarters and manufacturing origin
| Solar panel manufacturers | Company headquarters | Solar panels manufactured in... |
|---|
| Aleo | Germany | Germany, China |
| Axitec | U.S. | Canada, China |
| Canadian Solar | Canada | China, Canada, Brazil |
| Centrosolar | Germany | China, Germany, U.S. |
| ET Solar | China | China, Malaysia |
| Hyundai | South Korea | South Korea |
| Itek | U.S. | U.S. |
| KYOCERA Solar | Japan | Mexico, U.S. |
| LG | South Korea | South Korea, U.S. |
| Phono Solar | China | China |
| REC Solar | Norway | Singapore |
| ReneSola | China | China, Japan |
| SolarWorld | Germany | U.S. |
| SunPower | U.S | France, Mexico, Philippines, U.S. |
| Trina Solar | China | China, Malaysia, Thailand, Vietnam |
| Winaico | Taiwan | Taiwan |
| Yingli Solar | China | China, Taiwan |
Are Chinese panels lower quality than other manufacturer brands?
Moving on to the question of whether solar panels manufactured in China are of lower quality than other manufacturer origins (a concern we hear frequently from homeowners), the straightforwardanswer is “no they are not lower quality”. The specific country thata solar panel is made in will have little impact on the actual quality of the product put on your roof. In the above table, two trends are evident:
- The large majority of solar manufacturing occurs in Asia, with many top solar panel brands producing their products in China.
- Solar panels of all ranges in quality are made in China so there is no current correlation between the level of panel quality and whether it’s produced in China or elsewhere.
The data table above shows that the only reason a homeowner should use country of origin to selectsolar panels isan external reason unrelated to quality or price, such as a desire to buy “Made in the USA” products or help stimulate American manufacturing jobs.
In terms of how a homeowner could effectively compare the quality of different solar panel brands, there are a few third-party certifications that can be very helpful. TUV Rheinland is a database and organization that tests and evaluates manufacturing facilities and products. By searching for the panel brand you are considering, you can verify that they have certified production practices and a quality product.
Another third-party resource you can use is our very own. In collaboration with the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL), EnergySage invented its own proprietary solar panel rating system so that homeowners can easily compare their panel quality on an apples-to-apples basis. To learn more about our rating system, read our guide to selecting solar panels. Now that we’ve covered questions around whether Chinese solar panels make sense for you or not, read onfor further guidance about how to get the most out of your solar shopping experience.
Three Tips for Solar Shoppers
1. Homeowners who get multiple quotes save 10% or more
As with any big ticket purchase, shopping for a solar panel installation takes a lot of research and consideration, including a thorough review of the companies in your area. A recent report by the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) recommended that consumers compare as many solar options as possible to avoid paying inflated prices offered by the large installers in the solar industry.
To find the smaller contractors that typically offer lower prices, you’ll need to use an installer network like EnergySage. You can receive free quotes from vetted installers local to you when you register your property on our Solar Marketplace – homeowners who get 3 or more quotes can expect to save $5,000 to $10,000 on their solar panel installation.
2.The biggest installers typically don’t offer the best price
The bigger isn’t always better mantra is one of the main reasons we strongly encourage homeowners to consider all of their solar options, not just the brands large enough to pay for the most advertising. A recent report by the U.S. government found that large installers are $2,000 to $5,000 more expensive than small solar companies. If you have offers from some of the big installers in solar, make sure you compare those bids with quotes from local installers to ensure you don’t overpay for solar.
3.Comparing all your equipment options is just as important
National-scale installers don’t just offer higher prices – they also tend to have fewer solar equipment options, which can have a significant impact on your system’s electricity production. By collecting a diverse array of solar bids, you can compare costs and savings based on the different equipment packages available to you.
There are multiple variables to consider when seeking out the best solar panels on the market. While certain panels will have higher efficiency ratings than others, investing in top-of-the-line solar equipment doesn’t always result in higher savings. The only way to find the “sweet spot” for your property is to evaluate quotes with varying equipment and financing offers.
For any homeowner in the early stage of shopping for solar that would just like a ballpark estimate for an installation, try our Solar Calculator that offers upfront cost and long-term savings estimates based on your location and roof type. For those looking to get quotes from local contractors today, check out our quote comparison platform.
FAQs
Just because a solar panel is made in China does not mean it is poor quality. Many of the major tier 1 manufacturers have built robust manufacturing facilities in China due to cost, but have been able to demonstrate a track record of producing reliable products for over a decade.
Are Chinese solar panels any good? ›
So, are Chinese-made solar panels better? Chinese solar panel manufacturers leverage solar energy and massive government support to dominate the list of best value solar panel providers. It has established a reputation for excellent manufacturing quality.
Which country makes the best solar panels? ›
China's solar prowess is staggering. With a whopping 392 GW, the country is the largest producer of solar energy in the world. In the first six months of 2022, the nation has deployed more than 30.88 GW of Solar PV systems.
Why are Chinese solar panels so cheap? ›
Chinese solar panel makers benefit not only from generous government subsidies, but also from low labor costs: the average wage in China is about $3.60 per hour, while the average wage in the U.S. hovers around $21 per hour.
What is the highest efficiency Chinese solar panels? ›
【Xi'an, China November 19, 2022】On November 19, 2022, China's solar giant LONGi Green Energy Technology Co., Ltd.
Does Tesla use Chinese solar panels? ›
Longi is the world's largest photovoltaic company by market capitalization, and it actually has some competition with Tesla in its field.
How can you tell if solar panels are good quality? ›
This can easily be found out by requesting the common pv product certifications. After receiving the certifications, verify the authenticity of the pv certificate on-line at for instance TUV Rheinland. Certifications on your solar panels provide the standards for the profitability and security of your investment.
Who is the number 1 producer of solar panels? ›
As noted earlier, China is the largest producer of solar panels worldwide. In 2021, they manufactured 75 percent of modules, 85 percent of cells, 97 percent of wafters, and 79 percent of polysilicon, according to data from the International Energy Agency.
What is the lifespan of solar panels in China? ›
The industry standard for the lifespan of solar panels is 25-30 years.
What is the most efficient solar panel in the world? ›
Top 10 most efficient solar panels *
| # | Make | Efficiency |
|---|
| 1 | SunPower | 22.8 % |
| 2 | Longi Solar | 22.6 % |
| 3 | Jinko Solar | 22.5 % |
| 4 | Canadian Solar | 22.5 % |
6 more rowsMar 15, 2023
Chinese PV module maker Longi has revealed that it has achieved a power conversion efficiency of 26.81% for an unspecified heterojunction (HJT) solar cell, based on a full-size silicon wafer, in mass production.
What is the best solar company in China? ›
Coming in at number 1 is LONGi Green Energy Technology Co., Ltd. (also known as LONGi Solar), a Chinese company that specialises in the research, development, and manufacturing of solar photovoltaic (PV) products. The company was founded in 2000 and is headquartered in Xi'an, China.
Does the US buy solar panels from China? ›
Exclusive: U.S. solar panel imports from China grow, alleviating gridlock, officials say. March 6 (Reuters) - U.S. imports of solar panels are finally picking up after months of gridlock stemming from implementation of a new law banning goods made with forced labor, according to two Chinese solar companies.
Is SunPower Chinese owned? ›
SunPower Corporation is an American provider of photovoltaic solar energy generation systems and battery energy storage products, primarily for residential customers. The company, headquartered in San Jose, California, was founded in 1985 by Richard Swanson, an electrical engineering professor from Stanford University.
What is the 100% efficient solar panel? ›
Monocrystalline solar cells are the most efficient and can be used for residential properties as well as commercial installations. They are made from a single crystal of silicon which is highly efficient compared to panels with multiple fragments of silicon melted together.
What percentage of solar panels are made in us? ›
The United States produces just 5 percent of global polysilicon supply, practically 0 percent of wafers, 1 percent of solar cells, and only 6 percent of solar modules.
What percentage of solar panels are made in China? ›
In 2021, China accounted for 75 percent of the global photovoltaic (PV) module production.
...
Distribution of solar photovoltaic module production worldwide in 2021, by country.
| Characteristic | Distribution of production |
|---|
| China | 75% |
| Vietnam | 6.8% |
| Malaysia | 3.7% |
10 more rowsFeb 8, 2023
Solar's Biggest Manufacturers
Longi is the largest wafer maker in the world, with about 105 gigawatts of capacity as of last year, according to BloombergNEF. It also had about 35 gigawatts of cell manufacturing capacity.
How much does a Tesla solar panel cost? ›
For an average-size home, you can probably expect to pay $15,000 – $20,000 for a solar unit. Tesla solar panels are actually a little cheaper, averaging about $2,000 per kwh of solar capacity. Tesla solar has four different system sizes, and Tesla's costs range from $8,200 – $32,800.
What type of solar panel is most reliable? ›
Monocrystalline panels have the highest efficiency rating of any type of solar panel, reaching over 20%. This means that these can convert 20% of sunlight into usable energy. Polycrystalline panels are within the average range, hitting around 15% – 17%. For most residential purposes, these figures would suffice.
More prominent brands tend to offer better warranty terms, higher efficiency rates, and lower degradation rates. However, they also tend to be more expensive. When it comes to cheaper solar panels, on the other hand, the opposite is typically true.
Are some solar panels better than others? ›
Among all panel types, crystalline solar panels have the highest efficiency. Monocrystalline panels have an efficiency rating over 20%. PERC panels add an extra 5% efficiency thanks to their passivation layer. Polycrystalline panels hover somewhere between 15-17%.
Are any solar panels made in the United States? ›
Solaria. Solaria is based in Fremont, California, and manufactures its solar panels both in the United States and in South Korea.
What solar panel list is Tier 1? ›
This list should not be used for bankability purposes.
| Manufacturer | Solar Analytica Combined Product Ranking Avg. /100 |
|---|
| Sunpower/ Maxeon | 89.7 |
| LG Solar | 84.3 |
| Trina Solar | 77.9 |
| REC Group | 77.3 |
64 more rowsThe industry standard for most solar panels' lifespans is 25 to 30 years. Most reputable manufacturers offer production warranties for 25 years or more. The average break even point for solar panel energy savings occurs six to 10 years after installation.
Does hail damage solar panels? ›
Solar panels are designed to withstand different weather conditions, including hail and thunderstorms. However, just like your car windscreen can sometimes get damaged by extreme hail, the same can happen to your panels.
How long does it take for solar panels to pay for themselves? ›
The most common estimate of the average payback period for solar panels is six to ten years. This is a pretty wide range because there are many factors that will influence the number of years it can take to pay off your panels and the monthly savings you can expect.
How often do solar panels need to be cleaned? ›
It is generally recommended to clean solar panels every 6 months to a year in order to maintain the productivity, efficiency, and effectiveness of the panels. However, based on where you live and the level of dirt and pollution, the need for cleaning may be more frequent.
What solar panels does Tesla use? ›
What brand of solar panels does Tesla use? Tesla uses Q Cells as its solar panel brand.
What is the new solar technology in 2023? ›
Expansion of off-grid solar: Off-grid solar, which provides electricity to communities and individuals that are not connected to the grid, is expected to continue to grow in 2023. Off-grid solar can help to bring electricity to remote or rural areas and support economic growth and development.
An average home needs between 17 and 21 solar panels to fully offset utility bills with solar. The number of solar panels you need depends on a few key factors, including your geographic location and individual panel specifications.
Will solar panels ever reach 50% efficiency? ›
Will solar panels ever reach 50 percent efficiency? Maybe! Researchers say that he technology used by NREL to create solar cells with 47.1 percent efficiency can be fine-tuned to reach 50 percent efficiency in the future.
Why aren't solar panels 100% efficient? ›
Solar cells can never reach 100% efficiency because the solar spectrum puts out photons with a broad range of energies. Some of those photons will have higher energy than the band gap of the semiconductor used in the solar cell and will be absorbed creating an electron-hole pair.
Are cheap solar panels good? ›
Cheap solar panels can often be of poor quality and may not last as long as more expensive panels. Additionally, cheap solar panels may not be as efficient as more expensive panels, meaning they'll produce less electricity. Ultimately, cheap solar panels are not worth the risk.
What is the number one solar company in the US? ›
We've ranked our top picks for solar installation companies based on our detailed methodology and extensive research, and SunPower, Sunrun and ADT Solar scored the highest.
Are Chinese solar panels cheaper? ›
Chinese solar panels tend to be slightly cheaper than other brands of solar panels. Chinese solar brands were affected by solar tariffs imposed in 2018 and 2022, but still maintain significant market share.
Is China the leader of solar panels? ›
China is now the undisputable global leader of renewable energy expansion worldwide, and the IEA forecasts that by 2021, more than one-third of global cumulative solar PV and onshore wind capacity will be located in China.
Where does the US get most of its solar panels? ›
Most U.S. solar installations require the use of imported panels, largely coming from Asia.
...
| Characteristic | Share of imported panels |
|---|
| Malaysia | 44.8% |
| Vietnam | 27% |
| South Korea | 7.8% |
| Thailand | 7.4% |
4 more rowsFeb 16, 2023
The Chinese imports were suffocating U.S. manufacturers, who could not profitably compete against the artificially low prices. As a result, the U.S. imposed tariffs of as much as 250% on Chinese-made solar panels.
Is there a US company that makes solar panels? ›
First Solar
Currently the largest manufacturer of solar modules in the United States, First Solar mostly makes CdTe thin-film products aimed at the utility-scale sector.
That's why NASA chose SunPower high-efficiency cells to build experimental solar-powered aircraft, generate power at NASA facilities, explore the Greenland icecap and test solar for unmanned vehicles designed to explore planets such as Mars.
Are SunPower panels made in the USA? ›
Founded in 1985, SunPower's headquarters are in San Jose, California with manufacturing plants in Mexico, Malaysia, Philippines and China. In 2021 SunPower will be celebrating its 36th birthday, which is a very impressive milestone.
What happened to SunPower recently? ›
SunPower Corporation (SunPower) has announced its plan to split into two separate companies. SunPower will continue to be a distributed generation energy services company while their new company, Maxeon Solar Technologies (Maxeon Solar), will focus on the manufacturing of solar panels.
What is the 120% rule for solar panels? ›
The NEC, 120% rule states that solar PV systems should be installed in electrical boxes up to 120% of the busbar's label rating. For example, if the home's electrical meter rating is 175 amps, the rule allows an additional 20%, an equivalent of 35 amps from the solar system.
What is better than solar panels? ›
Wind turbines can harness up to 50% of energy compared to 20% for solar panels. In fact, one wind turbine can generate the same amount of electricity in kWh compared to thousands of solar panels.
What new invention is better than solar panels? ›
A new rooftop wind harvesting device is capable of generating 50 per cent more electricity than solar panels for the same cost, according to its inventors. A much smaller footprint means a single unit can also provide the same amount of power as up to 16 solar panels.
What US state has the most solar panels? ›
California has by far the greatest installed capacity of solar photovoltaic (PV) power of any U.S. state.
What state has the highest percentage of solar panels? ›
How many solar panels would you need to power the entire United States? ›
Therefore, about 7.85 billion individual solar panels, each providing about 350W per hour, are necessary to power the whole USA.
How efficient is solar panel in China? ›
China has achieved a new world efficiency record at 26.81 percent for silicon solar cells, according to the certification report of Institut für Solarenergieforschung in Hameln, Chinese solar giant LONGi Green Energy Technology Co said on Saturday.
Monocrystalline (mono) panels: Monocrystalline solar panels are the most common. Although they're the most expensive option, they offer the best long-term benefits. They have the highest average efficiency range of 15% to 20% and the longest lifespan of 25 or more years.
What percentage of solar panels are made in the USA? ›
The United States produces just 5 percent of global polysilicon supply, practically 0 percent of wafers, 1 percent of solar cells, and only 6 percent of solar modules.
Why do all solar panels come from China? ›
Charlotte Edmond. The solar panel production process has increasingly migrated to China, with the country instrumental in lowering costs. Silicon is a key raw ingredient in solar panel production but converting it into a usable format is energy-intensive and expensive.
