China sets new solar record
The National Energy Administration reported on Monday that China installed 93 gigawatts of solar panels in May – more than any other country did over the whole of 2024, according to Bloomberg. The figure is more than quadruple the capacity added during the same month last year and surpasses the previous monthly high of 71 gigawatts set last December.
The surge comes as developers rush to complete projects ahead of new regulatory changes that are expected to significantly reduce renewable energy prices.
May's record followed strong installations in April, bringing China's total solar additions for the first five months of the year to 198 gigawatts (GW) – averaging more than 1GW per day.
China typically sees a spike in solar installations in December, but developers accelerated activity this year ahead of anticipated policy changes. A regulation that took effect on May 1 made it more difficult to connect rooftop solar systems to the grid, while another policy starting June 1 removed pricing protections that had previously ensured profits for solar projects.
Analysts expect the new policies to moderate the pace of installations over the summer which would increase pressure on Chinese solar manufacturers, who have been grappling with overcapacity and falling prices for more than a year.
All major Chinese solar equipment firms posted losses in the first quarter of 2025, citing weak prices and rising trade tensions following the return of US President Donald Trump to the White House.
Trump imposed broad tariffs on imports from over 90 countries, including China, in early April. Beijing retaliated, leading Trump to raise tariffs on Chinese goods to 145%, while China responded with duties of up to 125% on US products.
The two sides reached a tentative truce in Geneva on May 12, agreeing to a 90-day pause on further hikes and to maintain a 10% baseline tariff. However, tensions resurfaced earlier this month amid mutual accusations of violating the deal.
Earlier, the China Photovoltaic Industry Association called for urgent consolidation in the sector, warning that unchecked expansion and price wars were driving the industry into a 'race to the bottom.'
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