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Traditionally, space-based PV refers specifically to solar power generation systems that provide electricity for various spacecraft (such as satellites, space stations and probes) in orbit. Unlike PV power plants on the ground, it is an integral component of the spacecraft itself, commonly known as a “solar wing” or “solar array.”
The current mainstream technology for space-based PV is the triple-junction gallium arsenide (GaAs) cell, prized for its lightweight properties, high efficiency and radiation resistance. Its core epitaxial growth is based on III-V compound semiconductors, using raw materials including gallium, arsenic, indium and phosphorus, with germanium monocrystalline wafers typically serving as the substrate.
The scarcity and high cost of critical metals like gallium, germanium and indium contribute to the extremely high cost of these space-grade PV cells.
From a demand perspective, commercial aerospace and AI computing power are the primary drivers. The narrative for space-based PV has expanded beyond traditional power supply, evolving into a new story where it becomes strategic infrastructure for space-based data centers, according to a PV module producer.
The global competition in low-Earth orbit (LEO) satellites has intensified, with the commercial aerospace boom directly creating a tangible, incremental market.
US-based aerospace and artificial intelligence company SpaceX executed 123 launch missions dedicated to its Starlink satellite internet constellation, deploying over 3,000 satellites in 2025. The operational in-orbit satellite count for the Starlink constellation now exceeds 9,300 units, according to the SpaceX website.
China submitted applications for frequency bands covering 14 constellations and a total of over 203,000 satellites by the end of December 2025. This is the largest frequency band application made by China to date, according to the official website of the International Telecommunication Union (ITU). It is expected to generate significant market demand for space-based PV systems, sources told Fastmarkets.
“The formulation and future implementation of these plans signify that the space-based photovoltaics market is poised to transition from a high-value, low-volume niche to a ‘strategic commodity’ market with genuine scale-manufacturing demand, with its scale expected to reach a trillion-yuan output value. The current mainstream GaAs technology path is too costly. Perovskite or Heterojunction (HJT) routes will inevitably become the future technological pathways for space-based PV,” a top Chinese PV module maker said.
The commercial aerospace sector is still in its early stages of development. As Song Dengyuan, chief technology officer of DAS Solar, noted in a media interview, spacecraft have extremely high reliability requirements and long validation cycles for solar cells. Therefore, the actual release of demand for space-based PV remains subject to observation.
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Space offers near-24-hour solar illumination and the ability to leverage the deep-cold cosmic background for near-zero-cost cooling. This makes space-based data centers a viable solution to overcome Earth’s energy bottlenecks amidst explosive AI computing growth and a key focus of international competition.
China is accelerating its layout for space-based computing. On May 14, 2025, China launched a space-computing satellite constellation of 12 satellites, marking the official start of the networking phase for the country’s first fully interlinked orbital computing constellation.
On November 27, 2025, Beijing held a promotion meeting for space-based data center construction. The meeting released a construction plan and launched an innovation consortium for space-based data centers with power exceeding 1 gigawatt.
The innovation consortium has completed the development of its first-generation test satellite, which is currently undergoing final assembly and testing, with a launch planned for early 2026.
Chinese PV companies are also actively positioning themselves in this emerging field. Leading PV module producers Jinko Solar and Trina Solar both announced their exploration of the space-based PV market around the turn of 2025/2026.
“Space-based photovoltaics is the only feasible long-term energy support for scenarios like space computing and deep-space exploration. It is a comprehensive new energy solution to address future Earth-bound AI power shortages and achieve ‘space-based power generation, wireless transmission and ground reception,'” Li Xiande, chairman of Jinko Solar, said in his New Year’s address.
Internationally, in November 2025, Google announced “Project SunCatcher,” a plan to collaborate with satellite company Planet Labs to build AI computing clusters in low-Earth orbit.
SpaceX, founded by entrepreneur Elon Musk, announced on Monday February 2 that it had acquired xAI, an artificial intelligence startup also founded by Musk, aiming to integrate innovative resources spanning fields such as AI, rockets and space-based internet.
Musk also announced at the World Economic Forum in Davos, Switzerland, in mid-to-late January that the combined PV production capacity of SpaceX and automaker Tesla, another of Musk’s companies, is targeted to reach 100 GW annually within three years.
“The moves by industry giants indicate that the market is attempting to translate the grand vision of space-based computing centers into tangible production capacity. On February 4, market rumors suggested that Elon Musk’s team had been in contact with Chinese module makers. Although companies like Jinko Solar issued announcements denying the existence of any concrete, executable cooperation projects with Musk’s team, they did not dismiss the future potential of space-based photovoltaics technology,” a PV analyst said.
In contrast to the enthusiasm for the space-based PV sector, the PV industry continues to grapple with the dual pressures of rising costs and overcapacity.
Driven by sustained cost increases for upstream raw materials, including polysilicon, silver and aluminium, Chinese module makers have raised their quotes.
Moderate price increases are beneficial for corporate profits, as most module producers have long operated at a loss or under significant cash flow pressure, which is detrimental to the healthy development of the industry chain, sources told Fastmarkets.
In 2025, China’s module production capacity exceeded 1,100 GW. But prices across the primary industry chain have fallen below cost levels, leading to collective significant losses for the entire sector. The average module price dropped from 1.802 yuan ($0.28) per watt in 2021 to 0.683 yuan per watt in 2025, according to a report by Wang Bohua, honorary chairman of the China Photovoltaic Industry Association (CPIA), given at a PV conference in Beijing on February 5.
The report also projected that China’s new photovoltaic installations in 2026 are expected to reach 180-240 GW, with global new installations estimated at 500-667 GW.
Furthermore, the country’s policy canceling export tax rebates for the PV industry, set to go into effect on April 1, has also pushed up prices for export orders.
“The cost-side support is strong, with the proportion of silver in production costs rising from the previous 8-10% to 15-20%. This is also putting pressure on some small and medium-sized module makers, making it difficult for them even to operate. The mainstream price for domestic modules has risen to around 0.85 yuan per watt. Front-loading production aimed at ‘export rushing’ is underway, as leading producers, especially those with significant export business, need to ship modules overseas for storage before April 1,” the PV analyst said.
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