Research suggests China added over 212 GW of solar capacity in the first half of 2025, reaching over 1.1 TW total, though profitability is a concern.  

In the Gobi Desert outside Dunhuang, 12,000 heliostat mirrors focus sunlight into a 260-meter tower, generating power 24/7. China’s largest molten-salt solar plant is a statement on what large-scale clean energy can be. 

China’s solar energy sector is experiencing rapid growth and significant challenges. The country is setting records for solar installations, contributing to global clean energy leadership. China’s clean energy boom is also seen as a strategy to boost its flagging economy, with reports suggesting it could stimulate growth through sector investments. China installed more wind turbines and solar panels last year than the rest of the world combined, reinforcing its global leadership.

Despite the expansion, the solar industry is grappling with financial losses, with the five largest companies reporting over 8 billion yuan in combined losses in Q1 2025. Last year, the sector shed 87,000 jobs, and over 40 firms faced delisting, bankruptcy, or acquisition since 2024, losing $60 billion. Overcapacity is a major issue, with polysilicon prices surging nearly 70% in July 2025, prompting plans for a $7 billion fund to shut down lower-quality capacity.

China has seen a massive surge in solar energy, with estimates suggesting over 212 GW added in the first half of 2025, pushing total capacity past 1.1 TW. In May alone, it installed 93 GW, highlighting its pace. This growth is part of a broader clean energy push, with solar and wind installations generating electricity comparable to large nations like Indonesia or Turkey.

Maria Kutuzova