China’s solar power expansion slowed sharply in August, with new installations falling to their lowest level in nearly three years, according to Bloomberg, citing data from the National Energy Administration (NEA).
The country added 7.36 gigawatts (GW) of solar capacity last month, a drop of about one-third from 11.04 GW in July. That marks the weakest pace since November 2022 and extends a decline that began after China reached a record 93 GW in May, when households and businesses rushed to secure panels ahead of anticipated policy changes.
While domestic growth faltered, Chinese producers increasingly looked abroad. Solar module exports climbed 9.5% year-on-year in August to $2.4 billion, a 28% jump from July, according to data from the General Administration of Customs. This was the first annual gain since June 2023.
A Citi Research note, led by analyst Pierre Lau, attributed the surge to stronger demand from Europe, Africa, and emerging markets such as the Philippines, Pakistan, and the UAE. Expectations of rising module prices and concerns that Beijing may scrap a value-added tax rebate for exports by year-end also boosted shipments.
China’s renewable energy build-out continues in other areas. The NEA reported 4.17 GW of new wind capacity added in August, alongside 7.89 GW of newly installed thermal power.
The slowdown in solar additions comes as Beijing faces the challenge of balancing domestic policy shifts, industry competition, and global demand dynamics. Analysts warn that while overseas sales are providing temporary relief for Chinese manufacturers, sustained growth will require greater stability in the home market.
