Yibin, China – China is poised to shatter its annual solar power installation record once again, despite the industry grappling with declining prices and shrinking profit margins.

Wang Bohua, Chairman of the China Photovoltaic Industry Association, revealed that the country is on track to install between 230 and 260 gigawatts (GW) of solar capacity this year, surpassing the previous record of 217 GW set in 2022. This figure is a significant uptick from the association's February forecast of 190-220 GW.

The rapid development of large-scale solar power bases in desert regions, coupled with supportive policies for rooftop solar installations, has contributed to the accelerated growth. Additionally, advancements in grid infrastructure have facilitated the transmission of solar energy to distant demand centers.

While China's robust domestic demand provides a much-needed lifeline for solar manufacturers, the industry as a whole faces significant challenges. Overcapacity has led to plummeting prices, resulting in billions of dollars in losses and forcing many smaller players out of the market.

The value of solar manufacturers' output decreased by 45% in the first nine months of the year, equating to a staggering ¥570 billion (US$78 billion) loss. Exports also suffered, with a 35% decline in the first ten months of the year, amounting to US$28 billion.