New solar capacity additions plummeted to 72.07 gigawatts for the first half of the year, a stark drop from the 212.2 gigawatts recorded during the same period in 2024. This decline reflects a cooling market as the industry struggles with structural overcapacity and the lingering effects of a rush to meet grid-connection deadlines before recent electricity-pricing reforms.

International headwinds are compounding these domestic troubles. U.S. tariffs and the removal of Chinese export tax rebates in April have disrupted traditional revenue streams. Customs data shows solar equipment exports fell by 21.4% last month, underscoring a broader reshaping of global trade channels. Despite the manufacturing slump, China’s total solar capacity reached 1,274 gigawatts by late June, placing it on the verge of overtaking the nation’s 1,275 gigawatts of coal-fired power.