China’s solar industry lobby says the sector is moving onto a more sustainable track after a government policy change leads to a sharp fall in new installations. In both reports, the lobby describes the decline as a “return to rationalization,” indicating a shift away from rapid capacity additions toward a more measured pace. The lobby points to a 66% drop in solar installations during the first half of 2026, attributing the contraction to the policy shift rather than changes in underlying demand alone. While the sources do not specify all policy details, they agree on the broad direction of events: installations fall materially following the policy adjustment, and the lobby frames the slowdown as beneficial for long-term industry health. The reports characterize the reduction as a transition period tied to revised government measures, with the industry expected to recalibrate following the change. Overall, both outlets present the lobby’s assessment as the main interpretation of the installation decline, emphasizing the linkage between policy and near-term market activity.