China Sets New PV Installation Record as Global Manufacturing Capacity Surges

Introduction

China’s solar photovoltaic (PV) market continues to break records, while global module manufacturing capacity is accelerating to meet rising demand. In the first four months of 2025, China added an astonishing 104.93 GW of new PV capacity—45.22 GW of which came in April alone—bringing cumulative solar installations to approximately 990 GW. Concurrently, the International Energy Agency (IEA) projects that worldwide solar module manufacturing capacity will climb from 1.3 TW today to 1.8 TW by the end of 2025, driven mainly by Chinese investment but with growing contributions from the U.S., India, and the EU.

1. China’s Record-Breaking Installations

• Q1–Q2 2025 Growth: China installed 104.93 GW of new PV capacity from January through April, a 30% increase over the same period in 2024, and eclipsed the previous yearly record in just four months.

• April Surge: With 45.22 GW added in April—a 215% year-on-year jump—China’s monthly deployment pace remains unparalleled.

• Cumulative Capacity: By April’s end, total installed generation capacity in China reached 3.49 TW (solar ~990 GW, wind ~540 GW), underscoring solar’s emergence as the dominant renewable source.

2. Global Manufacturing Capacity Expansion

• IEA Forecast: Global solar module manufacturing capacity is projected to rise from 1.3 TW per year today to 1.8 TW by end-2025, reflecting a 38% expansion in planned and under-construction facilities.

• Regional Contributions:

  • China remains the powerhouse, accounting for roughly 80% of current module capacity and spearheading most new “gigafactory” projects.

  • United States has ramped up to ~25 GW/year of module capacity, buoyed by the Inflation Reduction Act’s incentives.

  • European Union aims to boost annual capacity from 20 GW to 29 GW by 2025 under the Green Deal Industrial Plan.

  • India is scaling cell and module lines under its Production Linked Incentive (PLI) scheme, targeting 60 GW module capacity by 2025.

3. Industry Implications

1. Cost Reductions: Economies of scale from record installations and manufacturing expansions continue to drive down levelized costs of solar electricity, making PV increasingly competitive with fossil fuels.

2. Supply Chain Resilience: As regions diversify manufacturing beyond China, the industry is better positioned to manage trade tensions and logistical risks.

3. Energy Transition Acceleration: With global solar manufacturing capacity set to reach 1.8 TW and annual installations expected to exceed 500 GW in 2025, PV is on track to play a pivotal role in decarbonizing power systems worldwide.

Conclusion

China’s unparalleled installation growth and the global surge in manufacturing capacity signal a new phase for the solar industry—characterized by falling costs, stronger supply-chain diversification, and faster progress toward net-zero targets. Stakeholders should leverage these trends to optimize project planning, invest in advanced PV technologies, and support policies that sustain this momentum.