79% Slide: China's Domestic Solar Market Falls into a Harsh "Quiet Gap"

Beijing, China – After a period of explosive growth, China's domestic solar power market is experiencing a strong "cooling down". Latest data shows that installed capacity in April plunged by 79% compared to the same period last year. However, in contrast to the domestic gloom, the country's energy panel export machine is still operating at full capacity thanks to the pull from global geopolitical crises.

Record Decline and "Self-Correcting" Process

According to official data from China's National Energy Administration (NEA) cited by Bloomberg, developers in the billion-dollar country only added9.52 gigawatts (GW)new solar power capacity last April.

This number is a shocking decline when weighed against the enormous expansion45 GWof April last year - the time when companies raced to install before major changes in the solar power output pricing mechanism took effect.

The slowdown has been evident throughout the first months of this year. The Center for Research on Energy and Clean Air (CREA) based in Finland commented:"This decline shows that China's solar manufacturing sector is in a period of forced adjustment after last year's unusually rapid deployment boom.". Oversupply (glut) and changes in price policy have forced the domestic market to apply the brakes.

Table 1: Statistics of Solar Power Installed Capacity Fluctuations in China (2025 - 2026)

(Source: China National Energy Administration Data & CREA Report)

Chain Impact on Production Activities

The weakness of the domestic market immediately reflected on production lines. According to CREA's report, China's solar cell output in April wasdecreased by 25.6%compared to the same period last year.

This decline comes not only from weaker domestic installation demand, but also a slight pullback in exports after a sudden spike in March.

The Export Picture Paradox: Benefiting from the Energy Crisis

Although the domestic picture is gray, Chinese solar equipment manufacturers are finding a huge "escape" in the international market.

The prolonged crisis in the Middle East (especially disruptions around the Strait of Hormuz) has pushed up global oil and gas prices, forcing non-Chinese countries to accelerate the transition to renewable energy and electric vehicles (EVs).

• Strong international demand:Markets in Africa, Southeast Asia and Europe are sharply increasing solar panel orders from China to cope with the fossil energy crisis.

• Despite tariff barriers:Notably, the export growth momentum in April continued despite the Chinese government's official announcementTerminate export tax refund policyfor this item from April 1. Previously, analysts were concerned that the loss of tax subsidies would push up prices and significantly slow down export shipments. Reality has proven that the world's current "thirst" for clean energy is greater than the price barrier.

Conclusion: Ngành công nghiệp năng lượng mặt trời Trung Quốc đang bước vào một ngã rẽ mang tính bước ngoặt. Trong khi thị trường nội địa buộc phải tái cấu trúc để giải quyết bài toán dư thừa và thích nghi với chính sách mới, thì trên bản đồ thế giới, thiết bị quang điện của Bắc Kinh lại đang củng cố vị thế không thể thiếu. Cuộc khủng hoảng năng lượng truyền thống vô tình trở thành "chất xúc tác" giúp các nhà sản xuất Trung Quốc duy trì tăng trưởng, bù đắp cho sự chững lại tại sân nhà.

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