China’s Solar Boom Hits a Wall as Industry Losses Mount
Three of China’s top solar market players reported deepening losses over the first half of the year, reflecting weakening demand for solar in the world’s top manufacturer and generator. Jinko Solar, JA Solar Technology, and Tongwei all reported six-month losses as overcapacity in the sector meets weakening demand, not only at home but also abroad, Bloomberg reported, citing statements made by the…
China's solar industry is facing a significant challenge as losses mount and demand weakens, despite being the world's leading manufacturer and energy producer. Jinko Solar, JA Solar Technology, and Tongwei, three top solar market players, reported deepening losses for the first half of the year, citing factors such as overcapacity, weakening demand, and policy changes.
New solar power capacity additions in China dropped to 72.07 GW in the first half compared to 212.2 GW a year earlier. The rush to connect projects before China's June 1, 2025 electricity-pricing reform added to the decline, but the true impact of policies may take longer to fully materialize. JA Solar stated that while the industry faces temporary and structural overcapacity issues, full effects of capacity reduction and consolidation have not yet emerged.
The U.S. tariff war on major trade partners also impacted demand for Chinese solar equipment abroad, while a canceled export tax rebate by Beijing added to the pain. China's solar equipment exports declined by 21.4% in the previous month compared to a year earlier, according to Chinese customs data. Despite the slowdown in new additions, China's total solar power capacity is set to surpass its coal capacity, with solar power capacity standing at 1,274 gigawatts as of the end of June, just below the total coal-fired installed capacity of 1,275 GW.
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