China’s solar photovoltaic sector underwent a “profound adjustment” in the first half of 2026, noted a senior industry figure, with new solar installed capacity experiencing a 66% year-on-year decrease, reports Securities Daily.
The main reasons for the comparatively low figure include the installed capacity last year being exceptionally high and a fall in profitability following the marketisation of the new energy sector, Wang Bohua, former secretary general of the China Photovoltaic Industry Association (CPIA), told Caixin.
Many solar companies – including industry leaders – are still facing steep losses, exacerbated by factors like the recent cancellation of export tax rebates, as well as increased competition and logistics disruptions caused by global geopolitical conflict, the outlet noted.
Solar photovoltaic capacity in the first half of the year reached 72 gigawatts (GW). In February, the CPIA forecast that the installed capacity in 2026 would range from 180-240 GW, representing a year-on-year decline of 24-43%. This would mark the first annual decline in growth since 2019, notes Caixin.
For the situation to improve, the industry needs to shift from competition on price to that based on technology, quality and differentiation, Liu Yiyang, the secretary general of the CPIA, told Securities Daily.
Yuan Shuai, deputy director of the China Urban Development Research Institute’s investment department, told China Times that manufacturers should focus on advancements such as further reducing products’ cost per kilowatt-hour. The industry should also offer users a full service, from development and construction to operation, maintenance and power consumption.
Solar photovoltaic companies must also adjust their overseas strategies, not just relying on the product export model, but also providing localised solutions for different markets, establishing local supply chains and services, and improving the global brand influence of China’s new energy industry, Yuan added.
Read Dialogue Earth’s previous report on how a small Chinese solar company found success in Africa.