Industry body: China's solar growth to slow for the first time in six years

According to a forecast by an industry association on Thursday, China's rapid expansion in solar is expected to slow down this year for first time since 2019. The industry's growth will moderate.

According to Wang Bohua (Honorary Chairman of the China Photovoltaic Industry Association), new solar capacity in 2025 will range between 215 gigawatts in a conservative scenario and 255 GW with a more optimistic outlook.

This would represent a 8% to 23% decrease from the 277.57 GW record installations last year.

Wang attributed this expected slowdown to the high base of 2024 and the June introduction of a power pricing mechanism that will require renewable plants to be sold on a market-based basis. This change is expected to "complicate" future revenue estimates and increase investor uncertainty.

He said that local governments must still clarify their plans to implement the policy. This means there will be an "wait-and-see" period.

Wang says that the demand for solar will continue to grow as a result of rising electricity consumption from electric vehicles, data centres, 5G networks, and other emerging industries.

(source: Reuters)