The IEA’s five key policy action areas to ensure solar PV security of supply

11, Feb. 2025

Move solar PV supply chain diversification up the policy agenda as an integral part of advancing clean energy transitions. Consider crafting an industrial policy while maintaining a commitment to principles of open and transparent markets and avoiding barriers to trade.

 

Diversify manufacturing and raw material supplies

● Move solar PV supply chain diversification up the policy agenda as an integral part of advancing clean energy transitions.

● Consider crafting an industrial policy while maintaining a commitment to principles of open and transparent markets and avoiding barriers to trade.

● Consider integrating solar PV manufacturing facilities in industrial clusters, near traditional energy-intensive plants or other larger renewable electricity consumers (green hydrogen or green steel consortia) to help aggregate demand.

● Diversify raw material and PV import routes to reduce supply chain vulnerabilities.

 

The IEA’s five key policy action areas to ensure solar PV security of supply

 

De-risk investment

● Facilitate investment in manufacturing, e.g. through finance and tax policies, and other measures to de-risk PV manufacturing investment.

● Tailor demand support policies (e.g. auctions) in order to take into account long-term financial sustainability across solar PV supply chain segments.

● Encourage public-private collaborations, e.g. involving research institutions and labs, and public clean energy funding to catalyse private investment.

 

Ensure environmental and social sustainability

● Strengthen international cooperation on creating clear and transparent standards, taking into account environmental and social sustainability criteria.

● Focus on skills development, worker protection and social inclusion across the solar PV supply chain. Adopt policies promoting employment standards and transparency in order to help improve working conditions.

● Ensure PV manufacturing facilities adopt low-carbon and material-efficient manufacturing practices.

 

The IEA’s five key policy action areas to ensure solar PV security of supply

 

Continue to foster innovation

● Expand research and development funds with the aim of further improving solar cell conversion efficiency and reducing raw material use and costs.

● Promote technology innovation in manufacturing processes that reduce material intensity, especially for critical minerals such as silver and copper.

 

Develop and strengthen recycling capabilities

● Implement comprehensive regulatory frameworks to define stakeholder responsibilities and establish minimum requirements for collection and recycling.

● Support technology development efforts that improve solar PV panel design for recycling, reusability and greater durability

 

The IEA’s five key policy action areas to ensure solar PV security of supply