China's Solar Expansion Slows in 2026 After Record 2025

China added a record 315 GW of solar capacity in 2025, accounting for more than half of all new solar capacity worldwide. In 2026, new installations dropped sharply, according to a Carbon Brief analysis. The slowdown is linked to policy uncertainty as China moves away from fixed‑price renewable tariffs toward a market‑based system, leaving developers and banks unsure about financing.

Analysts say the sector is shifting from rapid expansion to integrating existing renewable generation into the grid. Despite the domestic slowdown, Chinese solar exports remain robust, driven by high global energy prices that are partly tied to geopolitical tensions.

The trend mirrors similar deceleration in other countries such as Spain, where subsidy changes and lower electricity prices have also reduced new build rates.