GreenergyDaily

Dec. 18, 2025

Losses in China's slumping solar sector narrowed in the third quarter, according to data presented by an industry group official, as the government's war on industrial overcapacity targeted manufacturers.

Industry-wide losses narrowed by 46.7% quarter-on-quarter but still reached 6.422 billion yuan ($911.9 million) in the July-to-September period, according to a presentation by Wang Bohua, the honorary chairman of the China Photovoltaic Industry Association.

Speaking at an industry event in the northwestern city of Xian on Wednesday, Wang said the construction of new manufacturing capacity was down compared to last year though he did not provide figures.

In the first 10 months of this year, output of solar cells and finished modules rose by 9.8% and 13.5% respectively, the presentation showed, but the industry scaled back polysilicon and silicon wafer output by 29.6% and 6.7%.

Wang highlighted an array of regulations passed in 2025, such as limits on the energy consumption of polysilicon plants, that he said were forcing less efficient capacity to shutter.

New government guidance aimed at expanding the use of renewables outside of the power sector would, meanwhile, support demand, he said.

An industry ministry official speaking at the same event reiterated government calls to strengthen control over manufacturing capacity and close down outdated production lines in 2026.