China’s July 2026 installations improved on MoM and YoY basis, signaling some recovery in project activity
Solar additions in the first seven months remained well below the unusually high 2025 levels, as per NEA data
Policy changes continue to reshape China’s solar market and influence project deployment
China installed 14.08 GW AC of new solar PV capacity in July 2026, representing a 27.5% improvement year-on-year (YoY), according to data from the National Energy Administration (NEA).
Even on monthly basis, the July additions improved over 12.48 GW AC the country installed in June this year, and 8.68 GW AC in the month of May.
While this can be seen as a rebound after a sharp slowdown earlier in the year, on cumulative basis solar PV additions remained well below last year’s level.
The latest figures show that China added 86.15 GW AC of solar capacity between January and July 2026, a 61.4% decline from the 223.25 GW AC installed during the same period in 2025. The unusually high installation base in 2025 was of course a result of 92.92 GW AC the country added in the month of May, ahead of the expiration of feed-in-tariff (FIT) regime from June 1, 2025 to market-oriented pricing mechanism (see China Sets New Annual Solar PV Installation Record In 2025).
The policy change has made project economics more dependent on market electricity prices and has contributed to a slower pace of new installations in 2026.
Solar additions fell sharply during the first half of the year, with 72.07 GW AC installed between January and June, down 66% from the same period in 2025, according to the China Photovoltaic Industry Association (see CPIA: China’s H1 2026 Solar PV Installations Drop 66% YoY).
July's recovery, therefore, does not yet indicate a broad return to the installation levels seen in previous years.
Solar industry analyst Frank Haugwitz of Apricum-The Cleantech Advisory expects relatively flat demand in the near term, noting that August and September are typically weaker installation months ahead of China's October national holidays.
The CPIA has already lowered its full-year 2026 installation expectations for China to around 180 GW AC to 240 GW AC (see CPIA: China Solar Installations To Dip In 2026 Before Resuming Growth).
Despite the slowdown in new additions, China's solar fleet continues to expand rapidly. The country’s cumulative installed solar PV capacity had reached about 1.29 TW by the end of July, up more than 16% YoY, as per the NEA, while the total wind energy capacity had reached 690 GW with 19.5% increase.
