China’s power sector is undergoing a structural shift of historic proportions. By July 2025, cumulative installed solar capacity had reached 1,109.6 GW, making China the first country in the world to cross the 1,000 GW solar milestone. Together with 574.9 GW of wind, renewables are reshaping the national electricity landscape — even as thermal power still accounts for the single largest share of installed capacity.

A Record Year for New Installations

Between January and July 2025, China added 223 GW of solar and 54 GW of wind, which together made up over 85% of new power installations. By comparison, thermal additions were 42 GW, representing just 13% of new capacity. Hydropower added a modest 6 GW, while nuclear growth stalled at zero. This contrast highlights two important dynamics:

• Solar’s rapid build-out is unmatched globally, with new installations in 2025 alone exceeding the total solar capacity of the entire United States.

• Traditional energy sources remain entrenched, with thermal power still comprising 40% of cumulative capacity (1,486.6 GW) despite declining year-on-year.

Regional and Grid Challenges

While China’s expansion of solar and wind is record-setting, grid constraints remain a key limiting factor. Much of the new renewable capacity is concentrated in the country’s northwest — areas rich in land and sunlight but distant from the major load centers along the east coast. Transmission bottlenecks have led to curtailments and even halts in solar and wind operations, as seen in recent reports.

The Chinese government’s response includes an ambitious 180 GW energy storage plan by 2025, aiming to stabilize grid operations, absorb excess renewable generation, and ensure system reliability. Without such measures, negative electricity prices and wasted renewable output will remain recurring challenges.

Scaling Renewables Worldwide

China’s milestone highlights the unprecedented speed and scale at which renewable energy can be deployed. While challenges remain in integrating such vast amounts of solar and wind into existing grids, the achievement underscores the central role renewables now play in shaping global energy supply. For the international market, this momentum signals growing opportunities for solar technology providers, storage developers, and grid innovators to support a more flexible and decarbonized energy future.

Despite short-term curtailments, Beijing’s commitment to its 15th Five-Year Plan signals unwavering ambition. The plan envisions renewables as the backbone of the power sector, aligned with the nation’s broader goal of achieving carbon neutrality before 2060. Solar’s growing share — already 30% of cumulative installed capacity — is expected to continue rising.

Implications for the Future Energy Market

For the global solar industry, China’s pathway illustrates both the potential and the growing pains of large-scale renewable integration. Grid stability, storage deployment, and market design will define the next phase of development. Once these barriers are addressed, the promise is clear: solar power will not only dominate capacity growth but also deliver affordable, reliable, and clean electricity at scale.

At AESOLAR, as a German manufacturer with more than two decades of expertise, we view these developments as a strong validation of our mission. As energy storage and smarter grid integration mature, the true value of solar power — affordability, scalability, and sustainability — will be unlocked for households, businesses, and utilities worldwide.

👉 Connect with our team: sales@ae-solar.com