Solar to jump into renewable energy driving seat at home and abroad, as China’s capacity just keeps expanding, analysts say

China’s solar sector is expected to add a total of 120GW to 140GW of capacity this year, at least 40 per cent higher than 2022, Hong Kong-based WaterRock’s Lucas Zhang says

Solar power generation will soon become the most economical form of electricity in China, surpassing hydropower to become the largest non-fossil energy source by the end of this year, Shanghai event hears

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A photovoltaic power station in Yinchuan, in China’s northwest Ningxia Hui Autonomous Region. Photo: EPA-EFE/XINHUA

Published: 11:00pm, 26 May 2023Updated: 2:47am, 27 May 2023

China’s solar sector is expanding at record speed as costs of components drop and demand remains strong, which in turn is expected to further boost renewable energy installation in the country and globally.

China installed 48.31 gigawatts (GW) of solar photovoltaic (PV) capacity in the first four months of 2023, nearly tripling the 16.88GW installed during the same period last year, according to statistics published by the National Energy Administration this week.

Accommodative local policies for solar capacity expansion introduced last year, falling equipment costs, the entry of a diverse group of capital and power investors, and the perception of relatively good annual green power tariffs are major factors contributing to fast solar capacity expansion, according to Lucas Zhang Liutong, director of Hong Kong-based consultancy WaterRock Energy Economics.

China’s solar sector is expected to add a total of 120GW to 140GW of capacity this year, at least 40 per cent higher than the 87.41GW of new solar capacity installed in 2022, Zhang said.

“We expect that the strong growth will continue, as the drivers remain the same for the rest of the year,” he said.

China’s provincial governments have introduced several policies and subsidies to incentivise rooftop solar installation in residential buildings and factories, to support China’s target of having 33 per cent of its electricity generation come from renewables by 2025, as mentioned in the country’s latest five-year plan for the 2021 to 2025 period.

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