The China Photovoltaic Industry Association says domestic installations are returning to more sustainable levels but expects both China’s market and global PV additions to shrink in 2026.
China’s photovoltaic industry entered a broad contraction during the first half of 2026, with production falling across every major manufacturing segment and domestic installations dropping sharply from last year’s exceptional level.
Speaking at the China Photovoltaic Industry Association’s (CPIA) mid-year review and outlook conference, former secretary-general, Wang Bohua, said the industry was undergoing a “deep adjustment,” but argued that the decline in installations represented a return to a more sustainable growth pattern rather than a reversal of the long-term trend.
China produced 538,000 tonnes of polysilicon in the first six months of the year, down 9.8% year on year. Wafer output fell 7.3% to 293 GW, cell production declined 21.9% to 260.7 GW and module output dropped 35.1% to 201.3 GW.
Prices also remained under pressure. By early July, polysilicon prices were 42.3% below January levels, while wafer and cell prices had fallen 28.7% and 27.7%, respectively. Module prices were around 3% higher, partly reflecting changes to China’s export tax rebate arrangements.
