Laos, India, And US Made Modules Exhibit Highest Defect Rates-Kiwi Research

The latest report by Kiwi Research, claims that Modules made in Laos, India, and the U.S. exhibit the highest module defect rates, exceeding 8% (percentages are per batch of PSI samples). The report drew this conclusion based on defect rates observed during PSI across various manufacturing countries.

The study stated, “This trend can be attributed to the substantial increase in new manufacturing capacities installed over the past year. The rapid expansion in these regions likely introduced challenges related to quality control, operational stability, and workforce training, resulting in elevated defect rates.”

The report analyzed how varying levels of experience, infrastructure maturity, and quality control influence defect rates across manufacturing countries. It noted, “Rapid expansion in countries like Laos, India, and the U.S. highlights the importance of stabilizing operations and enhancing quality systems to mitigate risks. Conversely, countries with more established manufacturing ecosystems, such as Malaysia, Thailand, Cambodia, and China, demonstrate the advantages of maturity and operational efficiency in PV module production.”

The report further revealed, “Countries such as China, Indonesia, Vietnam, and Turkey report moderate defect rates, ranging from approximately 4% to 5%. China, with its extensive manufacturing capacity and diverse range of manufacturers, experiences significant variations in product quality and technology, contributing to fluctuations in defect rates.”

In contrast, the report found, “Indonesia and Turkey, despite adding new production capabilities in recent years, have leveraged their more established experience. Thailand, Cambodia, and Malaysia report relatively low defect rates, remaining slightly above 2%. These countries benefit from mature manufacturing systems, advanced quality control protocols, and efficient supply chain management.”

Managing Manufacturing Expansion with Quality

The report underscores the importance of stabilizing operations and enhancing quality systems in rapidly expanding manufacturing regions like Laos, India, and the U.S. Meanwhile, established manufacturing ecosystems in Malaysia, Thailand, Cambodia, and China continue to demonstrate the advantages of maturity and operational efficiency in PV module production.

Changes in Efficiency

Kiwa PI Berlin’s quality assurance data showed that the PV module industry achieved a relatively low defect rate of 0.65%, attributed to the maturity of polycrystalline silicon solar cell modules and standardized product design. However, the growing share of monocrystalline silicon solar cell modules in 2017 and 2018 introduced significant technical changes in materials, processes, and equipment.

This push for advancements also led to an increase in quality issues and defect rates identified by Kiwa PI Berlin. While the defect rate decreased slightly in 2019, the rapid adoption of larger wafers, multi-busbar technology, and increased module sizes in 2020 caused another spike. Despite challenges posed by the COVID-19 pandemic, the industry stabilized in 2021 and 2022, thanks to refined manufacturing processes, enhanced automation, and the integration of intelligent in-process defect detection systems, such as automated soldering machines and advanced quality control measures.

The report on defects comes at a time when many manufacturers in India are struggling to stabilise cell manufacturing  operations they have started, finding he leap from trial runs to commercial start a huge challenge. That, in part has contributed to a significant premium for domestic cells over imported ones. This has meant higher prices than expected for many developers.