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China’s New Solar Power Capacity to Drop for First Time in Seven Years

Caixin Global · last updated

Workers install solar photovoltaic panels in Xiangyang, Hubei province, on Sept. 27, 2025. Photo: VCG

China’s solar power additions are set to decline in 2026 for the first time in seven years, as the industry confronts severe overcapacity and shifts toward market-oriented electricity pricing after a record installation surge last year.

Newly installed capacity is forecast at 180 to 240 gigawatts (GW), down 24% to 43% from 2025, Wang Bohua, a consultant with the China Photovoltaic Industry Association (CPIA), said at the group’s annual symposium on Feb. 5. The outlook marks the first annual contraction since 2019.

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