Solar Power in China: Does It Show Us Our Future?

China is installing more solar power each year than the rest of the world combined. 

In 2025, it was responsible for 2/3s of all solar installations in the world.

And it currently manufactures around 80% of the world’s solar panels.

So why is the world’s largest economy so into solar energy? And can we in the UK (and rest of the world) learn from this?

Read on to find out.

Background: Economic growth and investment in energy

China’s economic rise in recent decades has been astounding.

In 1980, its nominal GDP was an estimated $303 billion. This was 10x smaller than the US economy (despite having a 4.3x large population!)

Today, its nominal GDP is $20.65 trillion (66x larger), only about 35% less in total than the US.

For comparison, the UK’s economy grew 7x larger during the same period.

Industrialisation & energy consumption

Back in 1980, China’s energy consumption was almost entirely based around fossil fuels (especially coal).

(Only about 4% was based on a renewable energy source – hydropower).

It accounted for only about 7% of the world’s total energy consumption, despite being home to 22% of the world’s population.

But with its economic reforms in the 1980s, that changed. The country began to rapidly industrialise and nominal GDP growth was in the double digits for the following three decades.

By 2013, for example, it had poured more concrete in the previous three years than the USA had throughout the entire 20th century.

And today, its energy consumption is 10x higher and makes up 25% of the world’s energy consumption.

The rise of solar in China

China produces more renewable energy than any other country in the world. And solar is the biggest source of it.

In fact, it is both the world’s largest solar producer and market.

In 2025, it produced 1.6 terawatts (TW), 11% of its total energy, from solar. This is triple the amount the US and India produce each year combined.

And this growth rate looks set to continue. In 2025, 90% of the country’s investment growth was in its renewable energy industries.

As we at Geowarmth have seen first-hand, Chinese battery manufacture has scaled up quickly and has provided a competitive market with a wide range of more affordable options.

(Something many of us have noticed in the UK’s domestic car market, too.)

Types of solar in China

China’s solar is made up of large solar farms (about 60%) and distributed solar panels (40%) across roofs on homes and other buildings.

In 2021, the government Energy Department launched a Whole Country PV policy. This aimed to increase the proportion of distributed solar to 50% of the total, made up of: 

• 60% on public and government buildings, such as schools, hospitals, village committee centres, etc.
• 30% across commercial factories
• 20% across rural households.

The benefits of China’s solar focus

Economic prosperity

China’s solar industry is both its main source of investment and one of its fastest growing exports.

In 2023, its Ministry of Commerce announced its focus on what it called the ‘Three New’ exports: 

• Solar panels
• Lithium batteries
• Electric vehicles.

At present, these categories make up just under 5% of the nation’s exports. But with domestic and international demand, high growth is expected over the coming years.

Lowered living costs

Residential solar energy is estimated at $0.08 (or £0.059) per kilowatt an hour (kWh) in China. By contrast, it costs around double that in the UK (and over triple it in the US!)

Improved health

Solar energy is helping China reduce its reliance on coal, which is notoriously bad for health. 

The nation is currently ranked 21/138 in poor air quality. Its average PM2.5 level of 33 is around 6x the World Health Organisation’s recommended levels. 

However, this level is less than half of the level it was a decade ago. Solar has played a big part in reducing this figure, and will continue to in coming years.

Improved environment

China’s improved air quality also contributes to its improving environment more broadly. 

Almost half of the costs of fossil fuels, which increase carbon dioxide emissions, come from transport.

So, solar enables China to reduce its negative impact on its domestic environment and internationally.

Increased self-sufficiency

For the past few years, many major economies in the world have announced their intention to become more self-sufficient. 

At present, global supply chains have an enormous impact on the world’s economy. Without them, manufacturing, energy, agriculture and other major industries would be very different.

Either way, China’s increasing solar power is helping de-risk from the negative impact of global disruptions, tariffs, and more.

Learning from China’s solar growth

China’s solar growth has been powered by and in turn helped power its economic growth. 

This has helped drive down the global costs of solar power. And it’s shown the world how scalable solar technology is. 

In the UK, solar accounts for about 6% of power generated. It’s also growing fast. 2025 was a record year. In May solar levels reached an estimated 10% of total power generated.

On the ground, we are noticing more and more customers familiar with the bigger energy picture.

Some have even mentioned China’s astonishing growth in solar generation!

The UK government has helped the increasing growth in Solar here with its green grants. (The Warm Homes initiative is the latest – upcoming – one).

Whilst we know we can’t achieve China’s level of solar growth here, we can still learn from it.

They have led the way in showing how strategic planning can transform energy sources. And how beneficial solar power can effectively increasingly power a significant part of the world’s largest nation.

If we continue to cultivate our solar energy potential, we can similarly bring great benefits to the UK. As the Chinese philosopher Zhu Xi (1130 – 1200 AD) put it:

Some are bright and become brighter. Others need cultivation.
Cultivation isn’t like chiseling away with a hammer. It’s simply keeping calm and modest. Over time, brightness will arrive. 

Interested in installing solar panels?

We have been installing solar panels across the North East, Yorkshire, Cumbria, and the Scottish Borders for over 20 years.

And we can specify, design and deliver a range of other renewable energy solutions, including heat pumps, home batteries, and more.

Get in touch today if you’d like to find out more on how we can help make you home or business more energy efficient and environmentally friendly.