A recent Bloomberg New Energy Finance (BNEF) report predicts that the costs of clean energy technologies, including solar, will drop by 2-11% in 2025. This marks a significant milestone: solar power is now cheaper to build than new coal or gas plants, highlighting its growing competitiveness and accelerating the global shift to renewable energy.

China plays a pivotal role in this transformation. In 2024, Chinese solar manufacturing became the primary driver of global cost reductions. On average, China's solar production costs are 11-64% lower than in other markets. Large-scale photovoltaic (PV) projects, such as those in Xinjiang and Guangdong, are not only reducing costs but also boosting local economic development and energy security.

China's success stems from its mature solar industry and highly efficient manufacturing supply chain, allowing it to produce solar power at a fraction of the cost compared to other countries. This competitive advantage positions China to capture a growing share of global solar projects, supporting the country's “clean energy export” strategy and helping expand solar energy adoption worldwide.

Despite these successes, China's solar industry faces challenges. Overcapacity has led to trade protectionism, with some countries imposing tariffs to protect their domestic markets. In response, Chinese companies are adapting. For example, Jinko Solar has invested in Southeast Asia to bypass trade barriers, while LONGi Green Energy focuses on technological innovation to stay competitive internationally.

BNEF expert Matthias Kimmel noted, “China is exporting green energy technologies at incredibly low prices, prompting other countries to consider trade barriers. However, the trend of falling costs is unstoppable.”

Looking ahead, solar costs are expected to continue falling. By 2035, solar power costs are projected to decrease significantly, further cementing solar as a key player in the global energy transition. As China leads the way in affordable solar technology, it will play a central role in shaping a sustainable, low-carbon future.

With its low-cost production and technological expertise, China’s solar industry is not only transforming its own energy sector but also driving the global clean energy revolution.