70% of Solar PV Factories Show ‘Major’ Defects – Intertek CEA

Why It Matters

Widespread defects threaten solar module reliability, potentially increasing warranty costs and slowing the clean‑energy transition. The findings signal urgent need for tighter quality controls and market‑stabilizing policies to protect investors and end‑users.

Key Takeaways

• 71% factories graded C or D, indicating major defects.
• No A+ ratings; only 2% received A rating.
• Cost cuts drive quality decline across global PV supply chain.
• China, India, Indonesia have highest critical defect rates.
• New US factories show highest critical issues during ramp‑up.

Pulse Analysis

The Intertek CEA audit underscores a systemic erosion of quality standards across the solar‑panel value chain. Over 80,000 inspections revealed that manufacturers, squeezed by relentless price competition, have slashed quality‑assurance budgets, leading to a surge in major and critical defects. This trend is amplified by chronic overcapacity, particularly in China, where five leading producers collectively posted losses exceeding $4 billion in 2025. The financial strain not only jeopardizes product reliability but also inflates warranty liabilities, eroding confidence among developers and financiers.

Geographically, the defect landscape is uneven but troubling everywhere. China, India and Indonesia each reported nearly half of their inspected sites as D‑rated, reflecting critical safety concerns. In contrast, the United States and India hosted the only A‑rated factories, yet U.S. sites in early ramp‑up phases exhibited the highest incidence of critical issues, highlighting the challenges of rapid domestic scaling. Additionally, the adoption of tunnel‑oxide passivated contact (TOPCon) cells introduces ultraviolet‑light‑induced degradation, a technical hurdle that persists despite rigorous design and testing, potentially affecting long‑term performance warranties.

For the industry to regain credibility, policymakers and investors must foster a stable market environment that discourages aggressive price wars and supports sustainable capacity growth. Strengthening supply‑side regulations, incentivizing robust quality‑control programs, and aligning export‑tax and tariff frameworks can mitigate the race to the bottom. As solar remains pivotal to decarbonization goals, ensuring module integrity will be essential to maintaining cost‑competitiveness while protecting the long‑term health of the renewable‑energy ecosystem.