China’s renewable energy surge redefines housing norms and development

From exporting solar panels to building green-powered neighbourhoods, China’s renewables surge is redefining housing norms

At first glance, there appears to be little connection between fentanyl, the synthetic opioid fueling a public health crisis in the United States and China’s real estate sector.

Have you considered buying a solar-powered mini home? In China, prefab modular structures fitted with solar panels are being sold for as little as USD1,500—or even less when bought in multiples. Companies like Qingzhou Vessel Housing Technology are helping construction firms provide onsite housing for workers that’s quick to build and comes with free electricity, hinting at a broader shift in how Chinese people live, work, and power their homes.

Grassroots enthusiasm, simple installation services, and strong government support have created a perfect storm for the expansion of solar output

China’s transformation from the world’s leading exporter of photovoltaic panels to a domestic renewable energy juggernaut has unfolded in just over a decade. Once known for its smog-choked cities, China now produces more solar energy than the US and Europe combined, while aggressively rolling out new laws that intertwine green technology with housing market reform.

Though its solar supremacy may now seem inevitable, the country’s clean energy leadership was anything but guaranteed. As recently as the early 2010s, Chinese cities symbolised industrial pollution, with films like Under the Dome (2015) documenting the choking smog in places like Chengdu and its toll on public health.

Yet the numbers tell a story of rapid change. In 2007, China had just 100 megawatts of solar output. A decade later, it had multiplied 530 times to 53,000 megawatts—about 40 percent of that generated by rooftop panels installed by homeowners and apartment dwellers. According to Marius Kornes, associate professor at the Norwegian University of Science and Technology and author of Wind and Solar Energy Transition in China, grassroots enthusiasm, simple installation services, and strong government support created a perfect storm for expansion.

“The main reason it has worked so well in China is that there have been excellent financial models, where households have invested a small sum, which they have been able to earn back in three or four years,” says Kornes. “There were third-party installers that took care of everything, making the process simple and low-risk.

That simplicity, paired with state-led incentives like subsidies and feed-intariffs, allowed China to decentralise power production—transforming millions of homes into micro power stations feeding electricity back to the grid or cutting costs for residents.

China’s renewable rise is now being codified in law. After nearly two decades of drafting, the central government passed a landmark Energy Law in late 2024. Coming into force this year, the law lays the groundwork for a 2060 carbon neutrality target and calls for emissions to peak by 2030. It also explicitly encourages emerging technologies such as hydrogen and solar-based construction.

“It legally recognises many practices in the market, offering a clear roadmap for ensuring energy security while driving the energy transition,” Lin Boqiang, director of the China Centre for Energy Economics Research at Xiamen University, told the Global Times newspaper.

The law complements Beijing’s “new developer model” for property, which encourages higher-quality, more sustainable buildings. David Zhang, a policy analyst at Trivium, warns that while green housing is a long-term goal, price sensitivity in China’s troubled property market may slow adoption.

“Over the longer term, properties that meet new green standards are likely to perform better,” Zhang says. “As regulatory standards tighten and consumer awareness grows, homes without strong green credentials will face sharper price discounts and resale difficulties.”

Meanwhile, solar dominance isn’t the end game. China is betting big on hydrogen—the next frontier in clean energy. While much of the world’s hydrogen is still produced using fossil fuels, China already controls 60 percent of global electrolyser-based hydrogen capacity, according to the International Energy Agency.

In late 2024, as part of its “Hydrogen into Ten Thousand Homes” initiative, Hygreen Energy delivered a 25-megawatt electrolyser to a power station in Weifang, Shandong province. In Wuhan—long a hub for hydrogen R&D—firms like Wuhan Lyudong Energy Technology are pushing forward with fuel cells for vehicles.

Although hydrogen-powered homes are still rare in China, with Europe currently leading pilot programs in residential heating and cooking, few doubt that Beijing is watching closely. Scotland recently launched hydrogen demonstration homes featuring invisible flame stovetops and hydrogen-powered central heating, while the Netherlands is also piloting residential hydrogen.

Given how swiftly China leapfrogged rivals in solar energy, its ambitions in hydrogen—though nascent—are being taken seriously. At the launch of its second annual hydrogen industry report in April, China’s National Energy Administration stated the country was “gradually entering a new stage of orderly breakthrough from pilot exploration,” adding that it will continue contributing “Chinese wisdom to the global energy transformation.”

The road to net zero may be long, but China’s ability to pivot and scale up is clear. Its blend of consumer incentives, policy clarity, and industrial might is setting the tone for how nations might not only decarbonise—but redefine the very structure of their homes.

This article was originally published on asiarealestatesummit.com. Write to our editors at [email protected].