EXPANDING THE SOLAR MANUFACTURING SUPPLY CHAIN

1. EXPANDING THE SOLAR MANUFACTURING SUPPLY CHAIN Presented By Chuks. Umezulora

2. Contents • Solar PV Manufacturing Supply Chain • Sudden boom in global PV Production • The story of subsidies • China as a case study • Conclusion • Recommendation

3. Solar PV Manufacturing Supply Chain

4. Sudden boom in global PV Production

5. The Story of Subsidies • Its important to note that Solar manufacturing supply chain cannot grow exponentially without an exponential growth in solar adoption. • There seems to be a strong connection between solar adoption and government policies&incentives. • Countries like Germany, US, Japan, China, e.t.c who we see today as major players in the solar industry have at the early stages received subsidies and incentives from their government. E.g, Federal Investment Tax credit in the US which provides a tax credit of 30% for solar investment costs, subsidies to electricity generation from solar technology in the form of “feed in tariffs” (FIT),etc., and other Tax Incentives. • In the EU, nearly 100% of the new solar PV capacity since 1997 was installed in countries using FIT and nearly all countries that have growing solar PV markets have used FIT. • FIT are prices paid for solar electricity fed onto the electric grid that are independent of the cost of electricity from alternative sources

6. China as a case study Until 2010 China’s domestic PV market has been very small due to lack of sufficientincentives in the country to promote domestic PV deployment. However, since early 2009 many incentiveshave been implemented in China. In the space of 8 years (2009 – 2017), China has become a major player in the Solar Industry worldwide Source: S. Zhang, Y. He / Renewable and Sustainable Energy Reviews 21 (2013) 393–401)

7. Government Policies and Solar PV growth in China

9. Conclusion • The sudden global solar PV acceptance, growth and expansion is not “rocket science”. • Countries who have experienced huge solar PV growth has at some point received subsidies and incentives from their government. • The government is a major driver in the expansion of the Solar PV Manufacturing Supply chain • According to PV group, successful solar PV incentives have the following characteristics (See table)

10. Policy Recommendation • The government should introduce subsidies and incentives aimed at expanding the solar PV manufacturing supply chain • Introduce an effective national FIT Scheme • Learn from the best practices in the world • Draw lessons from the solar PV growth in China • Improved synergy between Government agencies and Stakeholders in driving nationwide solar PV acceptance, quality control checks, and more Foreign Direct Investments (FDI)

11. Thank You