China broke records for new solar installations in 2024 with installed capacity up 45% from the previous year and has almost 887GW of installed solar power, according to data from the International Renewable Energy Agency.
The surge in installations meant China hit its 2030 target six years ahead of schedule.
China's National Development and Reform Commission (NDRC) said China's clean energy capacity of all kinds had reached more than 40% of the economy's total energy generation capacity, in part because of the support of a system that guaranteed prices for renewable energy sold to the grid.
"The cost of new energy development has dropped significantly compared to earlier stages," the NDRC said in a statement.
The agency said any new projects completed after June this year would face payments for electricity based on "market-based bidding".
The NDRC said it expected there would be no impact on the price for residential users and farming and that power prices would be "basically the same" for industrial and commercial operations after the change took effect.
Reduced solar subsidies could add pressure on China's solar industry, where overcapacity relative to global demand has led to a drop in module prices.
