IRENA Insights: Solar Supply Chain Cost Tool - Understanding Cost Drivers in Module Manufacturing

Why It Matters

The tool equips policymakers and investors with granular, scenario‑based cost data, enabling informed decisions that can accelerate domestic solar manufacturing and sustainable growth.

Key Takeaways

• Tool models solar PV module cost across 2030 scenarios.
• Includes location-specific inputs for six major manufacturing hubs.
• Captures technology differences between PERC and TOPCon cells.
• ESG certification adds ~1% cost while boosting market credibility.
• Domestic production can become cheaper than imports by 2030.

Summary

The IRENA webinar introduced a new Excel‑based Solar PV Supply Chain Cost Tool that quantifies module‑level costs from polysilicon to finished panels through 2030. Developed under the Clean Energy Ministerial’s Transforming Solar Supply Chain initiative, the model integrates fixed industry assumptions, location‑specific variables for Australia, Germany, the United States, India, Vietnam and China, and user‑editable inputs, allowing policymakers and manufacturers to compare domestic versus imported component scenarios. Key insights include a detailed cost breakdown by manufacturing stage, the ability to model economies of scale and technology road‑maps, and scenario analysis of PERC versus TOPCon cell technologies. The tool projects declining electricity consumption and rising cell efficiencies, showing TOPCon’s higher current cost but faster efficiency gains that will eventually undercut PERC. ESG certification is modeled as a modest ~1% cost increase while delivering significant sustainability and market‑acceptance benefits. During the presentation, the speakers highlighted a Vietnam domestic‑manufacturing case where technology improvements drive cost reductions, and they demonstrated the dashboard’s comparative views of total module cost across the six countries. They also emphasized quality assurance, noting a 2012‑25 rise in known non‑conformities and urging the industry to prioritize reliability alongside price. The implications are clear: governments can use the tool to assess the competitiveness of local PV factories, justify tariff or subsidy policies, and plan ESG‑aligned investments that carry minimal cost penalties. For manufacturers, the model signals that strategic shifts toward TOPCon and domestic supply chains could yield cost advantages by the end of the decade.

Original Description

The costs of manufacturing solar PV modules vary significantly across the supply chain, from polysilicon production to final module assembly. Understanding these cost drivers is essential to assess the competitiveness of solar technologies and identify opportunities for greater efficiency and cost reduction.

This webinar presents IRENA’s Solar Supply Chain Cost Tool, which provides a transparent, data-driven view of manufacturing costs across selected countries. It highlights key cost components, underlying assumptions and the breakdown of materials, processing and assembly expenses at each stage. The tool supports manufacturers, investors and policymakers in making informed decisions to optimise strategies and strengthen the economics of solar PV deployment.

To read the full report: https://www.irena.org/Publications/2026/Feb/Solar-PV-Supply-Chain-Cost-Tool-Methodology-results-and-analysis

For more on the Insights Webinar Series: https://www.irena.org/Events/2020/Jun/IRENA-Insights