Table of Contents
China has become the world's solar superpower, surpassing the United States in solar capacity deployment and dominating the manufacturing supply chain for solar wafers. However, China's solar usage rates are among the lowest in the world due to its deployment patterns and resource constraints. Recent data suggests that China may be shifting from distributed solar to utility-scale solar, which could improve the overall efficiency of its electricity grid and aid in decarbonization. However, several hurdles hindering the country from reaching its domestic solar potential have emerged. China's solar strategy may be shifting away from distributed solar, with some provinces showing a potential turn to utility-scale deployments. However, there are still reasons to temper expectations, as China's solar utilization rates fell in 2023 and powerful structural hurdles to the technology's domestic adoption are coming into focus.
