Regulatory Impacts on the Development of Solar Industry in China: A Policy Analysis

Traditionally, China's energy structure has been dominated by coal, but China is trying to make transition towards renewable energy sources such as solar, wind, and hydroelectric power. Among these energy, solar energy plays a crucial role due to its scalability and reduction of cost. This study explains the impact of government policies on the development of solar industry and how China become a global leader in this sector, and strategies employed to fix the problem of overcapacity. By employing a mixed-method approach, including current status of the solar industry, case studies, and policy analysis, this paper examines the impact of policy frameworks, both historical and contemporary policies. It aims to provide insights for policymakers and industry stakeholders through evidence-based recommendations designed to optimize policy frameworks, support industrial growth, and promote sustainable development. Lastly, this research seeks to give a broader understanding of how government policies can nurture a resilient and competitive solar industry, thereby promote the development of renewable energy technologies and environmental management.