China's New Solar Installations Drop 66% Year-on-Year in First Half

New solar power plant installations in China fell 66% in the first half of 2025 compared to the same period last year, according to Reuters. The decline is linked to the end of a rush of installations ahead of pricing reforms. The slowdown reflects the impact of changes in government subsidy policies. After record installations in the first half of 2024, this sharp drop in 2025 indicates the market is entering a normalization phase. Experts note that uncertainties from pricing reforms have made investors cautious. Reduced state incentives and fluctuations in electricity prices have complicated financing for new projects. China remains the world's largest solar market, but this decline contrasts with its goal of peaking carbon emissions by 2030. Analysts suggest the short-term slowdown could be an opportunity to address overcapacity and low profitability in the sector. The government is expected to introduce new incentive packages and regulatory measures, but market players emphasize the need for more time for reforms to clarify and price stability to be achieved. This situation may also cause fluctuations in the global solar supply chain. This is not investment advice.