China's Solar Expansion Forecasted to Slow in 2025 After Record Growth

Beijing, Feb 27 - China's solar energy expansion is projected to decelerate in 2025, marking the first slowdown since 2019. The China Photovoltaic Industry Association forecasts new solar capacity additions to range from 215 GW to 255 GW. This represents an 8% to 23% decrease from the 277.57 GW installed in the previous year. The anticipated deceleration is attributed to the high base of 2024 and the implementation of a new power pricing mechanism in June. This mechanism mandates that new renewable energy plants sell power on a market basis, potentially complicating revenue forecasts and increasing investor uncertainty. Local governments are expected to clarify the implementation of this policy.