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China Adds Record 93 GW Solar in May 2025; Faces Slowdown Ahead Due to Pricing Reform

China added a record-breaking 93 GW of solar power in May 2025, the highest-ever monthly addition by any country and surpassing the cumulative capacity of several nations. According to China’s National Energy Administration, this surge contributed to a total installed solar capacity of 1.08 TW, representing a 56.9% YoY increase. Total power generation capacity now stands at 3.61 TW, with wind capacity at 0.57 TW.

May’s electricity consumption hit 809.6 TWh, up 4.4% YoY, with industrial sectors accounting for the bulk of usage. However, despite the current growth, the China Photovoltaic Industry Association anticipates a decline in annual solar capacity additions to between 215 GW and 255 GW in 2025, down from the 277 GW added in 2024. This projected slowdown stems from a policy shift away from feed-in tariffs to market-based pricing, effective June 2025.

Under the new regime, tariffs will be determined through regional market bidding. While the shift aims for long-term financial sustainability, it introduces near-term uncertainty and may impact investor sentiment. Still, China continues to lead the world in solar deployment, with the U.S. expected to add only 32.5 GW in 2025 by comparison.