As of the end of March 2024, China’s cumulative installed solar PV capacity reached around 660 GW. ⁶

China’s cumulative solar PV capacity will reach over 700 GW by 2024 and increase to close to 900 GW by the end of 2025, before topping 1 TW in 2026. ⁷

Wind power: As of the first half of 2023, levelized cost of electricity (LCOE) for onshore wind projects is USD $23/MWh. For offshore wind, the cost of electricity is about USD $23/MWh in 2022. ⁸

Solar PV: As of 2021, the levelized cost of energy (LCOE) in China from solar and storage sources was around $94.8/MWh ⁹

Coal: The average price of electricity produced by coal-fired power units across China was $53.32/MWh in 2018. ¹⁰

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• Coal: 42%
• Hydro: 16%
• Natural Gas: 9%
• Wind: 14%
• Solar: 15%
• Nuclear: 2%
• Oil: <1%
• Others: 1%

Electricity is generally available 24 hours daily in China. However, there can be occasional power shortages or restrictions, especially during peak demand periods or due to regional issues. ¹²

By July 2021, China’s cumulative installed residential PV capacity had reached more than 30 GW, with a total of 1.864 million residential units hosting solar PV systems. ¹³

According to publicly available records, there are about 12,729 installed and projected solar power farms in China. ¹⁴

The Chinese government has implemented policies prioritizing decentralized solar photovoltaic (PV) systems over utility-scale solar power farms. This strategic shift is evident in the growth of distributed solar, which contributed 15.5 GW to the 48.2 GW of new PV installations in 2020. Projections indicate that distributed solar could account for 25 GW of new capacity in 2021 as market penetration continues to expand. ³⁵

Current Demand: As of the end of March 2024, China’s cumulative installed solar PV capacity reached around 660 GW ⁶

Projected Demand: The Chinese solar energy market is expected to record a compound annual growth rate (CAGR) of more than 15% between 2024 and 2029. ¹⁵

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Solar engineer: A person working as a solar engineer in China typically earns around $3,682.55 USD. Salaries range from $1,696.46 USD (lowest) to $5,830.61 USD (highest).

Solar PV Installer: The average salary range for a Solar PV Installer  in China is between $17,114.25 USD and $28,818.57 USD per year and $11.45 USD an hour.

Project manager: The average salary for a Project Manager in the solar PV industry in China typically ranges from $18,000 to $25,000 USD annually, depending on factors like skills, experience, and education.

As of July 2024, the current population of China is 1,425,140,904. ¹⁸

Factory rent/mortgage

The average rent for factory buildings in China varies based on region and size. The average factory rent ranges between $25-85 USD per square meter. ²¹

Utilities (electricity, water, etc)

• Electricity: As of December 2023, the electricity price for businesses is $0.087 USD  per kWh. ¹⁹
• Water: As of 2023, the average cost of industrial tap water in China amounted to $0.3389 USD per cubic meter ²⁰

Equipment maintenance

This includes costs for regular maintenance, repairs, and replacements of parts over the lifespan of the solar equipment.

Administrative costs

• Salaries & wages: The average salary range for a Solar PV Installer  in China is between $17,114.25 USD and $28,818.57 USD. The average salary for a solar engineer in China is $3,682.55 USD monthly. ^{16 17}

Research and development

The cost of research and development varies depending on the manufacturer’s expertise, experience, and the degree of innovation of its solar panels.

Total Installed Capacity

In 2023, China’s installed electric generation capacity totaled 2.92 terawatts. Renewable energy sources comprised 1.26 terawatts of this capacity, with wind power contributing 376 gigawatts and solar power generating 425 gigawatts. The remaining capacity was predominantly derived from coal-fired power plants. ²²

Electricity Generation

China’s electricity generation is predominantly reliant on fossil fuels, with coal comprising 63% of the energy mix in 2022. While the nation continues to expand its coal power infrastructure, a concurrent shift in investment towards clean energy initiatives is underway to mitigate pollution and carbon emissions. ²³

Electricity Consumption

China has a total consumption of 6.875 trillion kWh of electric energy per year. Per capita this is an average of 4,873 kWh. China is self-sufficient with domestically produced energy. The total production of all electric energy producing facilities is 7.2 trillion kWh, which is 105 percent of the country’s own usage. ²⁴

Grid Infrastructure

China’s electricity is divided between two large interconnected power grids: one operated by the State Grid in the north and another by China Southern Power Grid in the south. While the northern grid was unified in 2005, the entire country’s power system was interconnected by 2011. The two main grids are linked together using high-voltage direct current (HVDC) technology. ²²

• China’s industry ministry has unveiled draft regulations tightening investment requirements in an effort to curtail overcapacity within the solar photovoltaic sector. The minimum capital ratio for new manufacturing projects has been increased from 20% to 30%. ²⁵
• The draft regulations establish minimum efficiency benchmarks for various solar panel technologies. The objective is to curtail the expansion of manufacturing capacity, eliminate outdated production assets, and facilitate industry consolidation. ³⁸
• In an effort to maintain its industry leadership, China has introduced proposed export controls for solar technologies. These measures seek to restrict the exportation of certain technologies required for solar panel manufacturing outside of ²⁶
• China’s strategic investment in solar photovoltaic technology, coupled with policies stimulating domestic demand, has fostered economies of scale and accelerated innovation across the supply chain. As a result, the cost of solar power has plummeted by more than 80%, making it a highly competitive electricity generation option worldwide. ²⁷
• In April 2021, as a means to accelerate its transition to clean energy, China’s National Energy Administration has mandated grid companies to provide connections for all solar and wind projects registered since 2019. Additionally, new projects must incorporate a certain amount of energy storage. These measures are crucial for China to peak its carbon emissions this decade and achieve carbon neutrality by 2060. ³⁹

• Since 2011, China has undertaken significant investments in expanding its solar photovoltaic supply capacity, allocating over $50 billion. This substantial investment has led to the creation of more than 300,000 manufacturing jobs across the solar PV value chain. ²⁷
• The Chinese government has implemented favorable feed-in tariffs to stimulate solar energy adoption. These tariffs guarantee solar electricity producers a premium price for their power compared to the market rate for a specified duration. ²⁸
• Despite global overcapacity in the solar PV market, Chinese solar companies continued to expand their manufacturing capacity. This growth was fueled by government incentives that encouraged officials to support local firms, as well as easy access to loans and financial backing. ²⁹
• The Chinese government’s unwavering support for its solar industry is evident in the $130 billion investment made in 2023 alone. These substantial funds enable domestic solar companies to maintain low export prices, irrespective of their financial performance. ³⁰
• In September 2022, China’s National Energy Bureau unveiled a new initiative fostering partnerships between local governments and solar developers for rooftop solar array installations. Under this scheme, building owners have the option to purchase solar panels and sell the generated electricity or lease rooftop space for developer-owned solar panel installations. ³⁶
• China’s Ministry of Science and Technology allocates an annual budget of $80 million to fund research and development across the entire solar power production process. This includes everything from producing the basic materials to designing complete solar power systems. ³⁷

Installed Projects ³¹

Huanghe Hydropower Hainan Solar Park

• Location: Remote Qinghai province
• Capacity: 2.2GW
• Details: It is the largest solar facility in the country and the second-largest in the world. It was developed by Chinese state-owned utility Huanghe Hydropower Development and came online in September 2020.

Tengger Desert Solar Park

• Location: Ningxia, China.
• Capacity: 1.55GW
• Details: Owned by China National Grid and Zhongwei Power Supply Company, the power plant was brought online in 2017.

Datong Solar Power Top Runner Base

• Location: Datong City, Shanxi province
• Capacity: 1.1GW
• Details: It was developed by several companies. The power plant currently has a capacity of 1.1GW following the completion of the first phase of the project in 2016. Once the final two phases are complete, this solar farm could be the largest solar site in the world with an installed capacity of 3GW.

Yanchi Ningxia Solar Park

• Location: Yanchi district, Ningxia
• Capacity: 1GW
• Details: Commissioned in September 2016, this solar farm achieved the distinction of being the world’s largest contiguous photovoltaic array. It consists of a network of interconnected solar modules functioning as a unified electricity generating system.

Longyangxia Dam Solar Park

• Location: Tibetan Plateau in north-western China’s Qinghai province.
• Capacity: 850MW
• Details: Developed by Huanghe Hydropower Development, completed in 2015 and is operated by the State Power Investment Corporation.

Projected Projects

Golmud Solar CSP Power Plant ³²

• Location: Golmud, Qinghai, China.
• Capacity: 3,300MW
• Details: Construction work started in the first quarter of the year 2021 and is expected to be completed 2024.

Qamdo Markam Angduo Photovoltaic Power Plant ³³

• Location: Markam County of Qamdo, Tibet.
• Capacity: 1,800MW
• Details: Construction work started in Q2 2023 and is expected to be completed in Q4 2024.

Mengcun County Rooftop Distributed PV Plant Phase ³³

• Location: Mengcun Hui Autonomous County, Cangzhou, Hebei.
• Capacity: 80MW
• Details: Construction work started in Q2 2023 and is forecast to complete in Q4 2025.

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Jinko solar

The company is an integrated photovoltaic enterprise specializing in the research, development, and production of solar products. They offer comprehensive clean energy solutions built upon their core products which are; silicon wafers, solar cells, and solar modules. ^{34 45}

Zhejiang Chint Electrics Co Ltd

The company specializes in the research, development, manufacturing, and distribution of low-voltage electrical products. Its product range encompasses power transformers, gas-insulated switchgear, capacitors, insulators, cut-out fuses, and other related items. The company offers comprehensive solutions for power transmission and distribution, electric power generation, solar energy systems, and traffic control. ⁴⁰

JA SOLAR TECHNOLOGY

The company manufactures solar power products that convert sunlight into electricity. Their products include photovoltaic modules, power supply systems, and other solutions for residential, commercial, and utility-scale power generation. ⁴¹

Trina Solar Ltd.

Trina Solar Co Ltd is a key player in the photovoltaic industry in China. The company specializes in the production and sale of solar modules. Additionally, Trina Solar is involved in the development and operation of many solar power plants in the country. ⁴²

Yingli Green Energy Holding Co Ltd

The company specializes in the entire solar value chain. This encompasses the conceptualization, creation, promotion, production, deployment, and distribution of photovoltaic products. The company’s offerings span the production of polysilicon ingots and wafers, solar cells, solar modules, and comprehensive solar systems. Additionally, they engage in the development and management of solar energy projects. ⁴³

LONGi

LONGi Green Energy Technology is a global leader in the solar industry. In 2023, the company produced a substantial 127.5 gigawatts of solar silicon wafers and 72.8 gigawatts of solar modules. Solar silicon wafers and modules collectively contributed to 19% and 77% of the company’s total revenue for the year. ⁴⁴