korrents

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Why are solar panels and batteries from China so cheap?

Hannah Ritchie · 15 May 2025 · sustainabilitybynumbers.com

5 korrents from this piece

Hannah Ritchie did not write this page.

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  1. That’s because most clean energy jobs are in deployment and maintenance rather than manufacturing, and since higher costs slow down the rollout of renewables, increasing prices reduces the total number of people working in clean energy (even if the number working in manufacturing increases).
  2. But, China mainly dominates these markets because it has produced a long-term industrial strategy for these technologies and has honed an optimised, modern supply chain as a result.
  3. Another factor that is killing Europe’s competitiveness — not just for batteries but for many industrial products — is the high electricity costs.
  4. But my point is that this is still not the reason (or is only a very small reason) why these goods from China are cheaper than elsewhere. The main driver of lower labour costs has been automation; not having a human worker at all.
  5. But you cannot support these programs while calling out China for “cheating” for doing the same.