China Cuts Renewable Energy Subsidies as Solar Soars

China plans to reduce subsidies for renewable energy projects following a significant increase in solar and wind installations. This move comes as China surpasses its solar capacity goals well ahead of schedule, during a period where the U.S. has stepped back from international climate commitments.

In a pivotal shift, China's leading economic planning body announced plans to scale back subsidies for renewable energy projects. This decision follows a remarkable surge in solar and wind power installations that set new records in 2024.

Notably, China achieved its 2030 solar capacity target six years early, highlighting the rapid development of its clean energy sector while contrasting with the U.S.'s withdrawal from the Paris climate accord under President Trump's administration.

The National Development and Reform Commission (NDRC) emphasized that future renewable projects will operate under a market-based bidding system, maintaining stable electricity prices for domestic and industrial use.

(With inputs from agencies.)