Analysis of China's Solar Photovoltaic Power Generation Status and Policy Trends in 2025

China's photovoltaic (PV) sector continues to experience rapid growth in installed capacity in 2025. However, it also faces challenges such as increasing grid integration pressures and accelerated market-oriented reforms. Below is an analysis of key developments this year from the perspectives of installed capacity and policy trends.

Solar PV Installation Status (Jan-Aug 2025)

The following data provides an overview of the PV installation landscape during the first eight months of 2025：            

Scale and Growth: PV installed capacity continues to expand rapidly, exceeding 1.1 billion kW and remaining one of the fastest-growing power sources.

Recent Volatility: The significant drop in new installations in August reflects a phase of market adjustment following high growth in the first half of the year, partly due to grid integration challenges and policy transitions.

•Core Policy Trends and Impacts

Current policy directions are clear: the focus has shifted from pursuing installation scale to high-quality development, addressing the challenge of "generating electricity that cannot be sold or sold at a satisfactory price.

•Comprehensive Market-Oriented Reforms

The central government's Document No. 136 is a key policy this year. It promotes the full participation of renewable energy in power market transactions, with feed-in tariffs determined by the market.

Impact: PV project revenues will be directly linked to real-time supply and demand in the power market, potentially increasing price volatility. Projects must enhance competitiveness, such as by integrating energy storage to optimize generation profiles.

•Strong Promotion of "Solar PV-Storage Synergy"

Policies now encourage deep integration of PV and storage through market mechanisms rather than simple mandates.

The national *Action Plan for Large-Scale Development of New Energy Storage (2025-2027) aims for over 180 GW of new energy storage capacity by 2027.

Impact: "PV + storage" will be key to improving project economics and mitigating market risks (e.g., negative electricity prices).

•Clarified Rules for Local Consumption, Encouraging Distributed Development

Regulators have refined pricing mechanisms to promote local consumption of renewable energy, defining project boundaries and responsibilities.

Distributed PV development is now strictly managed based on grid hosting capacity to ensure local absorption.

Impact: Clear rules support distributed PV projects near load centers (e.g., industrial parks), enhancing energy self-sufficiency.

•Guiding Industry Away from "Internal Competition" towards Technological Innovation

Authorities aim to curb cutthroat competition in the PV industry, shifting focus from "resource-oriented" to "efficiency-oriented" development. Policies encourage non-power applications like green hydrogen production to extend the industrial chain.

Impact: Competition will increasingly hinge on technological innovation, operational efficiency, and diversified applications rather than just cost reduction.

In summary, China's PV industry entered a new phase in 2025 characterized by slower growth, reshaped regulations, and higher requirements. Future development will rely more on technological progress, market strategies, and synergy with storage systems.