China connected a record volume of solar capacity to the grid in May, more than any other country in all of last year

China commissioned a record volume of photovoltaic (PV) plants last month in terms of installed capacity, with a total of 93 GW connected to the grid, as reported by Bloomberg. The monthly capacity addition is truly remarkable, even exceeding what any other country achieved in the whole of 2024 (excluding China itself). However, the record is not entirely coincidental: it was driven by a regulatory change that prompted developers to accelerate the completion of projects already under way.

According to data from China’s National Energy Administration cited by Bloomberg, China added 93 GW of new PV capacity in May, surpassing its own record of 71 GW set in December 2024. According to BloombergNEF analysts, China installed more in a single month than any other country managed during the whole of 2024. And by a wide margin.

Last year, the following additions of installed capacity were recorded: China – 278 GW, the US – 38.3 GW, India – 24.5 GW, Brazil – 15.2 GW, Germany – 15.1 GW. It is worth noting that the combined capacity additions of the countries ranked second to sixth roughly match China’s May addition.

However, the dramatic increase is no coincidence. Construction was massively accelerated because of a new government regulatory policy, under which the existing support scheme in the form of guaranteed prices for newly connected plants ended on 1 June 2025. They must now find their place in the market, substantially increasing the risk for investors and financing institutions.

The pace at which solar expansion in China will continue remains uncertain. One thing is certain, however: it will slow. According to analysts, this could further affect Chinese panel manufacturers, which have faced a surplus of panels on the market for more than a year (as manufacturing capacity is excessive), related price wars and falling margins. All major companies in the sector reportedly ended the first quarter at a loss.

For Europe, this may represent an opportunity in the form of lower installation prices. Czech companies confirm a significant decline in the price per 1 MW installed. However, even lower installation prices may not be sufficient for domestic investors to proceed with projects.