1. Global Solar Power Capacity Continues to Rise

According to the Global Energy Interconnection Development and Cooperation Organization and China’s National Climate Center, global photovoltaic (PV) power generation capacity is projected to increase by over 30% in 2025 compared to 2024. Wind energy is also expected to grow by 10%.

The China Photovoltaic Industry Association (CPIA) forecasts that global new PV installations will reach between 531 and 583 GW in 2025, representing a ~10% year-over-year increase.

2. China’s PV Installations Grow Steadily

As of the end of Q1 2025, China’s total installed solar capacity reached 945 GW, marking a 43.4% year-over-year increase.

 In Q1 2025 alone, China added 59.7 GW of new PV capacity to the grid — a significant rise from the same period last year.

3. Policy Shifts Driving Market Reform

China’s National Energy Administration announced a key policy reform titled “Notice on Deepening Market-Based Electricity Pricing for New Energy”. This marks a shift away from fixed feed-in tariffs (FITs) toward market-based pricing for solar and wind power.

Additionally, Shandong Province has introduced a "five-tier time-of-use pricing" mechanism, segmenting electricity prices into:
🔺 Super-peak, 🔼 Peak, ➖ Flat, 🔽 Valley, and 🔻 Deep Valley — aimed at optimizing energy consumption and encouraging renewable energy adoption.

4. Industry Opportunities & Challenges

While solar remains one of the fastest-growing energy sectors, it faces several short- and medium-term challenges:

• 📈 Rising Module Prices: Since February 2025, PV module prices have increased to 0.71–0.78 RMB/W, with potential for further increases due to demand surges.

• 🌍 Land Availability: Tightened land policies are making site selection for utility-scale projects more difficult, especially for agrivoltaic (PV + agriculture) systems.

• ⚡ Grid Integration: With rapid installation outpacing grid readiness in some regions, curtailment risks remain.