The PV sector of China was confronted with steep decreases in electricity output and margins in the first half of 2025, because oversupply and price decreases are weighed at manufacturers, according to the China Photovoltaic Industry Association (CPIA).
The PV industry of China achieved sharp decreases in electric production and profit margins in the first half of 2025, even when domestic installations reached record highs and new export markets were expanded, according to the CPIA.
The sun sector fights with slower production growth, falling profit and increasing global competition – even because it breaks records at home and expands its global reach.
A Mid-Year report from Wang Bohua, honorary chairman of the CPIA, showed steep drops on an annual basis in core production segments. Polysilicon output fell by 43.8% to 596,000 tons. The waffle production fell 21.4% to 316 GW. The output of solar cells and module grew by 7.7% and 14.4% respectively. The total expansion is considerably delayed.
The prices in the Supply Chain have collapsed. From the beginning of July the average prices for important products had fallen by 66% to 89% from their peaks from the Pandemic era, under historical lows and seriously pinching margins.
However, domestic installations have risen. In the first six months of 2025, China added 212.21 GW new capacity to the dual than double the figure from the same period in 2024-included a record of a month of 92.92 GW. Cumulative installed solar capacity has surpassed 1 TW, which increases the share of the sun in the national energy mix as the share of the coal decreases.
The export prospects remain weak. The total export value for Chinese PV products fell 26% on an annual basis, which marked a second consecutive decline. The export of the wafer and the module fell 7.5% and 2.8% respectively. Cell export, however, increased by 74.4% in volume and 33.1% in value due to the rising overseas module production.
Exports to traditional markets such as Europe, the Central East and South America fell. In the meantime, the shipments increased to 115 countries and regions. In 51 of them – mainly in Asia, Africa and America – the export growth exceeded 100%.
The financial position of the sector deteriorated. In the first quarter of 2025, 31 A-share PV companies reported a combined loss of CNY 12.58 billion ($ 1.73 billion), for an increase of 274% on an annual basis. More than 40 companies – including Jiangsu Sunshine and Akcom – have been removed, bankruptcy declared or restructuring have been introduced since 2024.
Despite this pressure, CPIA is revising his prospects on the entire year. Worldwide PV addictions are now projected on 570 GW to 630 GW, and the total of China is expected to reach 270 GW to 300 GW, supported by fixed project pipelines and a strong demand in provinces with market-based electricity prices.
Policy makers work on stabilizing expectations. Seventeen provinces have issued implementation rules for distributed PV development. Some self -consumption rates above 50% for commercial projects. New regulations link existing and future projects through fixed rates and guaranteed purchase to achieve long -term returns.
Green power targets for 2025-26 now require a heavy industry, including steel and aluminum, to increase the use of renewable electricity. New data centers must meet at least 80% of their electricity demand with green electricity.
The government promotes new applications such as direct delivery to industrial clusters, large-scale desert sun projects aimed at 253 GW by 2030, and multi-use installations such as solar-plus storage, hydrogen and zero-carbon industrial parks.
To curb the price wars, supervisors have urged a stronger self -regulation of the industry. The Ministry of Industry and Information Technology (MIIT) promised to combat non-sustainable prices, eliminate the low capacity and to increase quality standards. The effort is part of a broader strategy to send the sector to more stable and sustainable growth.
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