Taiwan’s solar PV market: Policy advances and supply chain restructuring amid slowing capacity additions

Looking back at 2025, Taiwan’s PV market demand was approximately 1.5 GWdc, with capacity additions reaching 1.2 GWac. In recent years, project development has been constrained by issues such as environmental impact assessments, land-use conversion approvals, and grid connection scheduling, all of which have slowed project execution timelines. In addition, amid ongoing policy uncertainty, some developers have become increasingly cautious toward new project investments. Compared with the strong expansion momentum seen since 2020, Taiwan’s PV market has entered a phase of negative growth in recent years.


 

Import-dominated supply structure continues, while local shipments decline

On the supply side, Taiwan’s solar market in 2025 remained heavily reliant on imported modules from Southeast Asia, primarily sourced from Vietnam, Malaysia, and Thailand. Total annual imports reached approximately 955 MW, of which Vietnam accounted for around 75%. In contrast, shipments from local Taiwanese module manufacturers continued to face pressure due to the limited market size and intensifying price competition, with some manufacturers’ own-brand shipments continuing to shrink. To maintain operations and preserve market share, some manufacturers have gradually shifted toward agency distribution models or the introduction of third-country OEM-labeled modules, aiming to diversify market risks and improve supply flexibility.

On the demand side, for most developers without specific country-of-origin requirements, third-country modules have gradually become the market mainstream. By comparison, the subsidy available for projects using locally manufactured Taiwanese modules certified under the Voluntary Product Certification (VPC) scheme provides only a relatively limited overall cost advantage, making it difficult to effectively stimulate procurement interest. As a result, local module shipments remained under downward pressure throughout 2025.
 

Technology and product trends: 183N TOPCon dominates as large-format modules gain ground

From a product technology perspective, the Chinese market has rapidly transitioned toward large-format products such as 210RN and 210N, with markets outside China also gradually following suit. Taiwan, however, remains in the early stages of this transition. At present, 183N TOPCon products continue to dominate the market. Nevertheless, 2H25, penetration of large-format products has shown clear signs of acceleration. In particular, several Southeast Asian suppliers, including LONGi and VSUN, have increased the supply share of 210RN products, helping to improve market acceptance of higher-power modules. Other manufacturers have also begun preparing to follow suit, with new products expected to launch in 2H26.

Module prices in Taiwan remained largely within the range of USD 0.22–0.24/W throughout 2025, before easing slightly to approximately USD 0.21–0.23/W by early 2026. Overall, prices have trended downward while remaining relatively stable. By contrast, module prices in Southeast Asia experienced more pronounced fluctuations. Following the cancellation of China’s export tax rebate in April, prices temporarily rebounded to around USD 0.135–0.150/W, with some manufacturers quoting above USD 0.15/W. However, amid uncertain demand conditions and limited acceptance from end market, the new price quotes have not been fully reflected in the local market. As a result, actual transaction prices have continued to fluctuate within a relatively narrow range, with price stabilization remaining the dominant trend and price increases occurring only on a limited basis.
 

Rising regulatory and technical barriers continue to pressure project development timelines

On the policy front, Taiwan’s PV market has continued to face tightening land-use and project development review requirements in recent years. Following legislative amendments passed by the Legislative Yuan at the end of 2024, the official implementation timeline of the Spatial Planning Act has been postponed to 2031. This means that uncertainties surrounding the use, rezoning, and development approval of non-urban land are expected to persist in the near term.

Meanwhile, amendments to the so-called “Three Solar PV Acts” were finalized in November 2025, covering the Environmental Impact Assessment Act, the Geology Act, and the Act for the Development of Tourism. These revisions further raise the development thresholds for ground-mounted and floating PV projects, with certain categories of projects subject to stricter regulatory restrictions. Under the revised framework, hillside or floating PV projects exceeding 10 MW or 5 hectares, as well as utility-scale ground-mounted projects exceeding 40 MW or 40 hectares, are now required to undergo environmental impact assessments (EIA). These regulatory developments have further increased the risks associated with site selection, land-use conversion, and project approval scheduling for ground-mounted solar developments, indirectly extending overall project development timelines.

At the same time, the policy issue currently drawing the greatest market attention remains the 5,400 Pa wind-load resistance requirement for rooftop PV projects. According to the revised Regulations Governing the Installation and Management of Renewable Energy Power Generation Equipment, effective January 3, 2026, PV modules installed on buildings must, in principle, provide certification documents demonstrating compliance with CNS 61215 or IEC 61215 standards, including successful completion of both positive and negative static mechanical load (ML) tests exceeding 5,400 Pa when applying for equipment registration. However, projects that completed grid connection review applications before January 3, 2026, or projects exempt from submitting grid connection review documents that had already obtained filing approval prior to that date, are exempt from the 5,400 Pa certification requirement. In other words, the key distinction between existing and new projects is determined by the application or filing date, rather than the final grid connection date.

At present, the primary bottleneck in the market remains the queue for 5,400 Pa static ML testing rather than full sequence testing. At the same time, as on-site mounting structures, clamp positions, and fastening methods may not fully replicate certified testing conditions, some projects are still required to provide additional structural calculations and professional engineer certifications alongside module test reports. Furthermore, with the Standards for Installing Photovoltaic Power Generation Equipment on Buildings scheduled to take effect on August 1, 2026, rooftop PV systems will be further integrated into Taiwan’s formal building review and approval framework. As a result, the 5,400 Pa requirement will not only affect module qualification and market entry, but will also have broader implications for system design, permitting procedures, and construction schedules. It may also subsequently impact supply timelines and procurement costs across the market.
 

Installed capacity target remains clear but delayed, with policy still the key variable

For 2026, Taiwan’s PV market demand is projected to reach approximately 1.5–2 GWdc, broadly in line with 2025 levels, while installed capacity is expected to range between 1.3–1.7 GWac. From a market structure perspective, rooftop PV projects will remain the primary source of demand support, while the development pace of ground-mounted projects is still expected to face constraints due to tightening land-use regulations, environmental impact assessment requirements, and increasingly stringent review procedures. Meanhile, although the 5,400 Pa wind-load resistance requirement is expected to improve overall system safety, it continues to pose short-term challenges for module qualification, project permitting, and construction scheduling. Combined with ongoing grid capacity limitations and unresolved interconnection bottlenecks, the overall market is unlikely to return to the rapid expansion phase seen in earlier years.

In the long term, although Taiwan’s PV policy direction remains unchanged and progress toward the 20 GW installed capacity target continues, the overall pace of implementation has been significantly slower than originally anticipated. As of March 2026, Taiwan’s cumulative installed PV capacity had reached approximately 15.8 GW. While the market had previously expected the 20 GW target to be achieved around November 2026, even under a more optimistic scenario in which annual capacity additions reach 2 GW, a noticeable gap would still fall short of the government’s target. Nevertheless, as Taiwan’s broader energy transition strategy remains firmly in place, policy support is expected to continue. While capacity addition progress has fallen short of expectations, the market still has room for gradual, sustained growth.