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China's Solar Industry Shifts: Concentration Rises, N-Type Tech Gains Share

China's solar industry is consolidating, with N-type technology on the rise. Despite a July slowdown, the market's long-term outlook is positive, boosted by strong performances from key players.

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2 min read
In the picture we can see the Chinese construction behind it we can see the trees and the sky.
In the picture we can see the Chinese construction behind it we can see the trees and the sky.

China's Solar Industry Shifts: Concentration Rises, N-Type Tech Gains Share

China's solar industry is experiencing significant changes, with a rise in industry concentration and N-type technologies gaining share. Experts anticipate a healthier, more orderly competitive landscape. Meanwhile, China added 11.04 GW of new solar capacity in July, a 48% decrease year-on-year.

China's solar market continues to grow, with total installed solar capacity reaching 1.11 TW in the January-July period, a 50.8% increase year-on-year. This growth is accompanied by a shift in industry dynamics. JA Solar reduced its Q2 loss by over 40% quarter-on-quarter and had a single-quarter net inflow of RMB 3.7 billion. LONGi also narrowed its loss in the first half of 2025, with BC module shipments reaching around 4 GW and over 70 countries.

In terms of projects, China Three Gorges (CTG) launched a tender for an 8 GW PV and 4 GW wind paired with 5 GWh of storage project in the Kubuqi Desert, with an estimated total investment of around RMB 80 billion. CHN Energy is shifting its strategy, prioritizing mega-bases in deserts, the Gobi, barren lands, and integrated hydro-wind-solar hubs.

Regulatory changes are also afoot. Central ministries are calling for a lawful clampdown on cut‐throat, below‐cost competition in the solar industry. Hubei Province issued new rules for distributed PV, requiring at least 50% annual self-consumption for general industrial and commercial systems.

In Germany, the solar industry is led by market leaders Enpal and 1KOMMA5°, who are driving the sector's future growth through rationalized capacity consolidation. Despite this, SMA Solar posted a EUR 42.4 million net loss in the first half of 2025, with shipments down to 8.3 GW.

The solar industry in China and Germany is evolving, with increased industry concentration and regulatory changes shaping the market. Despite a decrease in new capacity additions in July, the long-term outlook remains positive, with companies like JA Solar and LONGi showing improved financial performance.

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