Chinas National Energy Administration (NEA) reported 11.04 GW of the new solar capacity in July, which was around 48% decline compared to the previous year. Nevertheless, the additions reached 223.25 GW in the January July period and raised the total number of solar capacity to 1.11 TM and 50.8%compared to the previous year.

The sharp slowdown in July underlines a deep adaptation in the industry.

First, the business performance between the market participants diverges. Among Chinese leaders, signs of Stabilization arises. In the first half of 2025, Longi achieved sales of 32.813 billion RMB and the losses by RMB from the previous year. The BC (BC) modules in the rear contact became about 4 GW and reached more than 70 countries. In the meantime, Solar reduced his quarter of the quarter by over 40%in the second quarter. The operative cash flow has improved for three quarters in a row, with a one-quarter Netto inflow of 3.7 billion RMB.

In contrast, the international inverter major SMA Solar was hit hard. In the first half, the company recorded a net loss of EUR 42.4 million a leap from 196.1% compared to the previous year with the programs to 8.3 GW, which took out the global top 5 of the inverter programs.

At the same time, large bases and new applications are created as bright spots. China Three Gorges (CTG) started the tender for the Kubuqi desert (central -north -wing ordos). New energy plan: 8 GW PV and 4 GW wind paired with 5 GWH memory.

In the construction-integrated photovoltaic (BIPV), the strategic cooperation between Longi and Center Int achieved a breakthrough for curved coal storage shed. Using a contour tracking program and a arched cleaning robot, the systems of the complex bargain surfaces and advanced work were dealt with for “technical specification for BIPV with crystalline silica modules on curved metal roofs”.

In the regulatory front, the directive directs the transition. The province of Hubei has recently published new rules for distributed PV that has committed general industrial and commercial systems for self -consumption at least 50% the annual generation and encouragement of PV plus storage to increase self-use. In the meantime, CHN Energy-China’s top PV building contractor is shifting to “value optimization” in recent years from the last few years, tightening the yield swells and prioritization of mega-bases in deserts, gobi and barren countries as well as integrated hydro-wind soles hubs.

Analysts find that the industry with central ministries moves a lawful inclusion via cut-throat competitions below the cost competition from the country-related extension to high-quality breakthroughs.

Since the capacity is rationalized, managers with stronger technology, balance sheets and differentiated offers are best placed in order to leave the downturn early and to draw the sun sector into a new phase of high -quality growth.

Experts expect a healthier, more proper competitive landscape if the concentration of the industry increases and Type N -type technologies.