China's Solar Installations to Plummet in 2026 Amid Policy Shift, Industry Warns

• China's solar power sector anticipates a significant slowdown in new installations in 2026 due to a major policy overhaul affecting project payments.
• The China Photovoltaic Industry Association (CPIA) forecasts annual solar additions to drop to 180-240 GW in 2026, down from a record 315 GW in 2023.
• A key policy change from June 1 last year mandates wind and solar generators to sell power at market-based rates instead of government-regulated tariffs, compressing margins.
• The rapid expansion of solar farms has strained power grids, necessitating accelerated investments in transmission lines, storage, and digital tools.
• A downturn in China's solar demand could worsen the global supply glut and intensify competitive pressures for equipment manufacturers in overseas markets.