China has solidified its position as the world’s largest market for both photovoltaics (PV) and solar thermal energy, with its PV capacity crossing a significant milestone of 1,000 gigawatts (one terawatt, 1 TW) in May 2025. This achievement underscores the country’s commitment to renewable energy and its dominance in the global solar power industry.
The growth of China’s solar power market has been remarkable, with the country adding 277 gigawatts (GW) of solar power in 2024 alone. This addition accounted for 15% of the world’s total cumulative installed solar capacity, demonstrating China’s significant contribution to the global transition to renewable energy. The country’s photovoltaic industry has a long history, dating back to the production of panels for satellites, before transitioning to the manufacture of domestic panels in the late 1990s.
The introduction of substantial government incentives in 2011 marked a turning point for China’s solar power market, leading to dramatic growth and establishing the country as the world’s leading installer of photovoltaics in 2013. China surpassed Germany as the world’s largest producer of photovoltaic energy in 2015 and became the first country to have over 100 GW of total installed photovoltaic capacity in 2017. These milestones highlight China’s rapid progress in the solar energy sector and its commitment to reducing its reliance on fossil fuels.
Industry Leadership
As of 2024, Chinese firms have emerged as industry leaders in almost all key parts of the solar industry supply chain, including polysilicon, silicon wafers, batteries, and photovoltaic modules. This dominance is a testament to China’s strategic investments in the solar sector and its ability to drive innovation and efficiency in the industry. With Chinese companies playing a leading role in the global solar supply chain, the country is well-positioned to continue driving growth and development in the sector.
China’s solar power capacity continues to expand, with the country’s PV capacity surpassing 1,100 gigawatts by June 2025. This rapid growth has enabled China to account for one-third of the world’s installed solar panel capacity, making it a global leader in the adoption of solar energy. As the world’s largest market for solar energy, China’s policies and investments in the sector are likely to have a significant impact on the global transition to renewable energy.
Looking ahead, it will be important to watch how China continues to develop its solar power sector, including investments in new technologies and innovations in the industry. The country’s ability to drive down costs and improve efficiency in the solar sector will be critical to achieving its renewable energy goals and reducing its carbon footprint. As the global energy landscape continues to evolve, China’s leadership in the solar power sector is likely to play a key role in shaping the future of renewable energy and mitigating the impacts of climate change.
