Napa, California – June 2025
STS was pleased to participate in the PV ModuleTech USA 2025 conference held in Napa, California. The event gathered industry leaders, technology experts, and supply chain stakeholders to exchange insights on the evolving PV module manufacturing landscape. We thank the event organizers for hosting a high-caliber forum, and extend our appreciation to all fellow speakers and participants for the engaging discussions.
At the conference, STS contributed with a dedicated presentation focused on the quality risks and mitigation strategies related to PV modules manufactured in new factories outside of China, particularly in the U.S. and India. Our presentation drew on extensive data from STS’s global conformity assessment projects and field experience.
Key Takeaways from STS’s Presentation:
1. Rapid Capacity Expansion in New Markets
Since 2022, both the U.S. and India have significantly increased their manufacturing capacities—adding approximately 42 GW and 62 GW of annual capacity respectively. However, this rapid growth comes with challenges as many factories in these markets are still going through early-stage development and operational learning curves.
2. Quality Risks in New Factories
Buyers sourcing modules from these emerging facilities may face increased risks due to:
– Immature Quality Management Systems (QMS)
– Reliance on imported sub-components
– Labor shortages and higher workforce costs, especially in the U.S.
3. Importance of Technical Due Diligence
Our findings highlight the value of conducting Factory Audits and Production Monitoring to evaluate and control production quality. These measures help benchmark suppliers, detect real-time non-conformities (NCs), and improve manufacturing outcomes during project execution.
4. Assessment Data Across Regions
STS’s global benchmarking data shows that:
– Factories in the U.S. and India have lower average global scores (~75%) and more frequent non-conformities (≥4/site) than those in China and Southeast Asia (~80% and ≤3/site).
– Gaps in both QMS and Manufacturing Process (MP) maturity levels underscore the need for structured assessments.
5. In-Production Monitoring: A Must-Have
Increased NC density in 2025 (rising from ~6 to above 9) reflects the growing complexity in managing production in new facilities. Workforce-related issues remain a primary contributor to non-conformities, making 24/7 third-party monitoring a key risk-mitigation measure.
STS’s Recommendations:
– Engage a qualified third party to assess new factory maturity before supplier selection.
– Implement a full-scope, third-party production monitoring program to ensure quality and mitigate risks.
As the global PV manufacturing footprint continues to evolve, STS remains committed to supporting buyers with data-driven, on-the-ground expertise, ensuring the quality and reliability of their solar investments.
For more information about our PV module quality assurance and supply chain services, contact us.