The production capacity is only 1% of that of crystalline silicon, but the cost of cadmium telluride can catch up?

On one hand, crystalline silicon photovoltaics, which hold a 95% share of the global photovoltaic market, boast a massive scale and a solid position. On the other hand, cadmium telluride thin-film photovoltaics, with a production capacity of only a few gigawatts and often overlooked, are quietly reshaping industry perceptions. Despite its global production capacity accounting for less than 1% of crystalline silicon, it has successfully reduced production costs to levels comparable to those of crystalline silicon modules. This breakthrough not only reshapes the logic of cost reduction in the photovoltaic industry but also opens up a new landscape for technological diversification and differentiated competition in the industry.

01 Overlooked Thin-Film Technology Embraces the BIPV Trend
Crystalline silicon modules have become the absolute mainstream with a market share exceeding 95%, while thin-film technology holds only approximately 5%. Cadmium telluride (CdTe) technology accounts for over 95% of the thin-film sector, making it the most mainstream thin-film photovoltaic solution.
Although high costs have previously hindered large-scale adoption, the situation is changing with the mass production of a new generation of large-scale CdTe modules. Especially with China's 14th Five-Year Plan clearly proposing to achieve 50GW of building photovoltaic capacity by 2025, BIPV (building-integrated photovoltaics) is becoming a key battleground for CdTe technology.

Unlike BAPV, which requires additional structural elements, BIPV integrates directly into the building's exterior envelope, seamlessly integrating power generation with architectural aesthetics. Zhongmao Green Energy Technology's BIPV product series, through integrated design, integrated construction, and prefabricated installation, offers a novel solution for industrial and commercial rooftops and building curtain walls.

02 CdTe's Advantages Demonstrate Differentiation
CdTe modules exhibit unique advantages in BIPV applications: excellent low-light performance, a wide transmittance adjustment range (20%-80%), minimal hot spot effects, high safety, and customizable appearance. These features significantly outperform traditional crystalline silicon modules in terms of aesthetics and adaptability.

In recent years, as the BIPV market continues to heat up, CdTe has gained increasing recognition in both the construction and photovoltaic industries for its high safety, aesthetics, and flexible customization. For example, the Harbin MW-class CdTe rooftop BIPV project utilizes 250W CdTe solar glass, with a total installed capacity of 2.94MWp, creating a differentiated blue ocean market for CdTe companies.

According to market forecasts, China's BIPV market is expected to exceed 600 billion yuan by 2030, with penetration increasing from 0.1% in 2020 to 8%. Globally, the BIPV market is projected to reach $300 billion by 2030, with a compound annual growth rate exceeding 20%. A massive market is rapidly opening up.

03 The Key to Cost Reduction: Technological Innovation and Industry Chain Optimization
A massive market is rapidly opening up. The key to achieving cost breakthroughs for CdTe lies in comprehensive upgrades to production equipment and the technological chain.
Efficiency improvement is the core driving force.
Companies are continuously improving CdTe's photovoltaic conversion efficiency through the application of new materials and processes. Although laboratory efficiency remains slightly lower than that of crystalline silicon, in real-world applications, CdTe exhibits superior power generation performance in low-light environments and complex orientations. Especially in low-light environments, even when installed at a 90-degree vertical angle, the power generation from multiple building facades (east, west, and south) exceeds that of crystalline silicon modules. It also maintains effective power generation even on cloudy days or during the morning and evening hours, resulting in a longer average daily power generation period.

Localization of equipment helps control costs.
The company focuses on R&D for raw materials and core equipment for cadmium telluride thin-film solar cells. It continuously strengthens technological innovation, accelerates the basic research and industrialization of large-area thin-film solar cells, and strives to build a competitive advantage across the entire supply chain, from R&D to production. With breakthroughs in the localization of core equipment such as close-space sublimation (CSS) and vapor transfer deposition (VTD), equipment procurement and maintenance costs have been significantly reduced. Fully automated production has also reduced labor costs and improved production efficiency.
Large-scale production brings economies of scale.
The mass production of ultra-large 1215mm×2300mm cadmium telluride modules has effectively diluted unit manufacturing costs by increasing the panel area and increasing the power per module.

The structural advantages of a short industrial chain. Unlike crystalline silicon, which undergoes a long production chain involving raw material purification, crystal pulling, slicing, cell manufacturing, and module packaging, the cadmium telluride production process is remarkably streamlined—a production line just over 1,000 meters long can complete the entire process, from raw materials to finished product. This highly integrated production model avoids the added costs associated with multiple stages.

Furthermore, the cadmium telluride semiconductor layer is only 2-3 microns thick, requiring only 1/50th the material of crystalline silicon, offering a disruptive material consumption advantage.

04 Diversified Technology Pathways
Cadmium telluride's resurgence reveals a new paradigm for the photovoltaic industry: While crystalline silicon giants are mired in capacity expansion and price wars, cadmium telluride companies, leveraging a streamlined production chain, domestically produced equipment, and proprietary processes, have achieved cost parity and sustained profitability at a minimal production capacity.

This phenomenon further demonstrates the importance of a diversified technology path for the development of the photovoltaic industry. While a single technology path is easily constrained by factors such as resources and policies, a diversified path can better adapt to diverse application scenarios and needs.

Competition in the photovoltaic industry is shifting from scale expansion to technological breakthroughs and application innovation. The rise of cadmium telluride is rewriting a new chapter in the photovoltaic industry. On this path of diversified innovation, Zhongmao Green Energy Technology, with its forward-looking strategy and accumulated technological expertise, has become an active participant and promoter of this transformation.