China's photovoltaic (PV) retail sales declined 14% in December 2025 compared to the same month in the previous year, signaling a notable cooling in demand within the world's largest solar market. The downturn affects key players in the solar supply chain and raises concerns about near-term growth prospects in the renewable energy sector.
- China's PV retail sales declined 14% year-on-year in December 2025.
- The drop marks the steepest monthly decline since 2021.
- LONGi Green Energy Technology (LONG) and Canadian Solar (CSIQ) are directly impacted by reduced downstream demand.
- Fronius International (FSLR) may face lower volume in solar system components due to weaker export-linked demand.
- Oversupply and delayed project completions are key drivers of the slowdown.
- Global solar pricing and supply chain dynamics could be affected by prolonged Chinese demand weakness.
China’s photovoltaic (PV) retail sales fell 14% year-on-year in December 2025, according to government data, marking a sharp reversal from earlier growth trends in the country’s solar deployment. The drop reflects weakening downstream demand, potentially driven by oversupply in the domestic market, delayed project timelines, and tighter credit conditions for solar installations. This decline comes despite strong production capacity and continued investment in PV manufacturing infrastructure. The slowdown impacts multiple segments of the solar value chain. Leading solar manufacturers such as LONGi Green Energy Technology (LONG) and Canadian Solar Inc. (CSIQ) may face margin pressure as inventory builds and pricing competition intensifies. Inverter and balance-of-system suppliers, including Fronius International (FSLR), could also experience reduced order volumes in export markets tied to Chinese production. The drop in retail sales signals a broader shift in the dynamics of China’s solar market, where rapid capacity expansion outpaced actual deployment. Analysts note that the 14% decline is the steepest monthly drop since 2021 and raises questions about the sustainability of current solar investment cycles. With PV installations in China growing at a slower pace than projected, global solar companies dependent on Chinese supply chains may need to reassess inventory strategies and export targets. The trend could also influence pricing for solar modules globally, especially in Europe and Southeast Asia, where Chinese exports remain dominant.