China has set a new benchmark in solar energy deployment, installing a record 60 gigawatts (GW) of new solar photovoltaic (PV) capacity in the first quarter of 2025 — the highest first-quarter addition in the nation’s history, according to Rystad Energy research and analysis.
Rooftop PV systems accounted for 36 GW, or 60 per cent of the total, marking the largest quarterly increase for distributed solar in China’s history and underscoring the country’s accelerating shift toward decentralised renewable energy.
This unprecedented surge was primarily driven by the urgency to meet policy deadlines set by the National Energy Administration’s (NEA) new guidelines, released in October 2024 and implemented in May 2025.
The directive incentivises self-consumption of distributed solar projects, aiming to ease grid congestion, improve stability, and reduce dependence on centralised power plants.
These reforms are integral to China’s dual carbon targets: peaking emissions before 2030 and achieving carbon neutrality by 2060.
Rystad Energy forecasts that the rooftop PV boom will persist into the second quarter, with distributed solar additions for 2025 expected to reach 130 GW – 92 GW from commercial and industrial (C&I) projects and 38 GW from residential installations.
Meanwhile, utility-scale solar is also on track for a record year, with 167 GW of new projects anticipated, fuelled by provincial efforts to meet targets under the 14th Five-Year Plan.
The new guidelines have introduced significant changes for the C&I sector. Full grid access has been cancelled for C&I projects, except for standard projects up to 6 megawatts (MW), which can self-consume and partially sell excess power.
Larger C&I projects must now fully utilise their generation and are barred from selling to the grid.
“While these new guidelines are pushing China forward, they’re having a dual impact on the C&I sector that typically has limited or no grid connection,” said Yicong Zhu, Vice President, Renewables & Power Research, Rystad Energy.
“On one hand, increased self-consumption in C&I rooftop PV projects is easing grid-connection challenges and helping ease grid congestion across the country.
“The rules are also helping to accelerate progress in carbon trading and green certificate markets, with storage installations expected to rise.
“However, the added complexity in purchase agreements may introduce new uncertainty and potentially weigh on project economics, which could dissuade developers, investors and financiers.”
Provincial implementation has varied, with regions like Inner Mongolia and Jilin imposing strict self-consumption requirements, while Jiangsu and Guangdong have adopted more flexible approaches, encouraging further growth in rooftop installations.
As China’s distributed PV market matures under these new policies, the sector is poised for continued expansion, supporting the nation’s ambitious renewable energy and climate goals.
