The forecast by energy research firm Wood Mackenzie comes as nations like the United States and India are subsidizing their own solar production to reduce reliance on Chinese-made goods to achieve their clean energy goals.
But China has invested more than $130 billion into its solar industry this year, the analysis said, and will bring more than a terrawatt of solar wafer, cell and panel capacity online by 2024. That's enough to meet annual global demand through 2032.
The aggressive capacity expansion has already forced solar panel prices down dramatically this year and is prompting concern among U.S. producers that are banking on a government-backed domestic manufacturing boom.
The United States and India combined have announced more than 200 gigawatts of module capacity plans since 2022, Wood Mackenzie said.
"Despite strong government initiatives for developing local manufacturing in overseas markets, China will still dominate the global solar supply chain and continue to widen the technology and cost gap with competitors," Huaiyan Sun, the author of the report, said in a statement.
