TAIPEI (Taiwan News) — Chiang I-yen (江宜晏), a researcher at the Industrial Technology Research Institute, said that Taiwan added 818 megawatts of solar capacity in the first nine months of this year, a 36.5% drop from the same period last year, highlighting the challenges the country faces in reaching its 2030 target of 31 gigawatts.
To boost sales of Taiwan-made solar products, Chiang suggested the government offer subsidies to developers who adopt domestically produced modules or consider limiting the share of imported solar cells, per CNA.
Taiwan’s solar sector depends heavily on imported upstream materials such as polysilicon and silicon wafers, with China supplying more than 90% of the global demand, Chiang noted. Taiwan’s strengths lie in the midstream segment, particularly solar cell production, which benefits from the nation’s established semiconductor technology.
Since 2017, the sector has undergone major restructuring, with companies forming alliances to expand into module manufacturing. This addresses the issue of Taiwan’s traditionally small and fragmented system-development market.
The Taiwan Stock Exchange Corp. said last year’s solar module sales were led by United Renewable Energy, Tsec, AUO, and Motech, which together accounted for more than 70% of the domestic market. Taiwanese solar makers also saw a rise in export demand.
However, Chiang noted that Chinese manufacturers produce more than twice the global demand and maintain low prices through established global supply chains. The oversupply could affect Taiwan’s solar output.
Chiang estimated that Taiwan’s solar cell and module output this year will fall below NT$38.8 billion (US$1.25 billion), a decline of more than 20% from last year. With continued oversupply, the nation’s solar industry output could drop further to NT$32 billion next year.
Chiang urged Taiwan’s manufacturers to expand solar product sales to Japan and the US. Japan’s residential environment is similar to Taiwan’s, making it easier to sell domestic products there. US restrictions on Chinese supply chains also create opportunities for Taiwanese exports.
In June, Motech secured a full-year order from a Japanese customer. United Renewable Energy plans to expand US solar module manufacturing, citing up to 40 GW of annual market potential. Tsec has exported modules to Japan and expects to ship solar cells to the US in the first quarter of next year.
