China’s photovoltaic (PV) industry is undergoing a policy-driven overhaul in 2025, with market dynamics and corporate strategies shifting radically under new regulations. The implementation of the Administrative Measures for Distributed PV Development has created a policy fault line: projects connected before April 30 retain “full feed-in tariff” status, while those completed after May 31 must enter spot power markets, ending decades of coal-linked pricing. This deadline is accelerating technological upgrades and business model pivots.
Regional disparities have emerged sharply. Eastern provinces like Shandong and Zhejiang, with robust grid infrastructure, are witnessing a rush to complete grid connections before the deadline. In contrast, central and western regions with saturated grids—including parts of Gansu and Qinghai—have suspended new project approvals. National Energy Administration data reveals a 62% YoY surge in distributed PV filings across six eastern provinces during Q1, contrasting with a 28% decline in three northwestern provinces.
Technological breakthroughs dominate the sector’s response. Perovskite solar cells and N-type technologies are emerging as critical pathways. Shenzhen-based Solargiga announced commercialization of its 100MW perovskite tandem cell pilot line, achieving 31.27% efficiency—a 20% improvement over conventional silicon cells. Meanwhile, N-type technologies now command 79% market share, with TOPCon (25.8% average efficiency) and HJT (26.5%) cells leading the transition. Longi Green Energy plans to phase out all P-type cell capacity by year-end, with its 8GW N-type wafer plant in Malaysia nearing commissioning.
Product innovation is redefining applications. Bifacial contact (BC) cells are gaining traction for differentiation: Aiko Solar’s ABC modules achieve 75% bifaciality, boosting energy yield by 8-12% over conventional panels. Jinko Solar’s BIPV solar roofing tiles, meeting construction-grade fire and waterproof standards, have been deployed in Hangzhou’s Asian Games Village.
Business models are evolving beyond subsidies. Companies now prioritize “self-consumption + surplus trading” structures. A manufacturing park in Guangdong’s Shunde District implemented a “PV + storage + EV charging” system, reducing blended electricity costs by 32% to ¥0.15/kWh through peak-shaving arbitrage. More advanced pilots include Huawei Digital Energy’s virtual power plant (VPP) in Shenzhen, aggregating 52,000 distributed PV systems to provide grid ancillary services, generating over ¥80 million in revenue.
Industry consolidation is accelerating. Trina Solar acquired Spanish energy storage integrator Nclave to deploy integrated solutions, while Chint Group launched a “zero-carbon park” lifecycle service model covering financing, construction, and operations. These shifts reflect a broader strategic pivot from hardware sales to integrated energy services.
Despite H1 sectoral output growth slowing to 12%, R&D intensity reached a record 6.7%, per China Photovoltaic Industry Association data. In Changzhou’s National Hi-Tech Zone, a consortium led by Trina and GCL is drafting IEC standards for perovskite cells, underscoring China’s global tech leadership. This policy-tech-market trifecta is reshaping the global clean energy landscape.
