Chinese Solar Firms Report H1 Losses as Domestic Additions Fall to 72 GW

Three leading Chinese solar manufacturers disclosed widening losses for the first six months of 2025. The companies attributed the results to domestic overcapacity and a 21.4 percent year-on-year decline in solar equipment exports. Beijing’s April cancellation of the export tax rebate and the June electricity-pricing reform accelerated the contraction after an earlier rush to connect projects.

The capacity slowdown coincides with external tariff measures. U.S. duties on imports from multiple trade partners reduced overseas orders, while Chinese customs data confirm the export drop. Total installed solar capacity nevertheless reached 1,274 GW by end-June, nearly matching coal-fired capacity of 1,275 GW, preserving the long-term substitution trajectory.

State incentives that once drove rapid build-out now encounter structural limits. Overcapacity exerts downward pressure on margins, prompting consolidation that the firms themselves describe as incomplete. Export channel reshaping will depend on bilateral tariff negotiations and any further domestic policy adjustments.

Consolidation is likely to favor vertically integrated producers with balance-sheet strength. Smaller exporters face higher exit risk if overseas barriers remain elevated through 2026.