Solar power has emerged as China’s largest source of installed electricity generation capacity, overtaking coal in a major milestone that highlights the country’s accelerating shift towards renewable energy.
China’s total installed solar capacity reached 1,286 gigawatts (GW) at the end of July 2026, representing approximately 31.5 per cent of the country’s overall installed power generation capacity, according to data from the National Energy Administration.
The latest development marks a significant change in China’s power sector, which has historically been heavily dependent on coal. The China Electricity Council had previously indicated that solar capacity was only about one gigawatt below coal-fired generation capacity at the end of June, setting the stage for solar to take the lead shortly afterwards.
The rapid expansion reinforces China’s position as the world’s dominant solar energy market and a major force across the global renewable energy supply chain. Investment in China’s solar sector is expected to exceed 2 trillion yuan, equivalent to about US$298 billion, over the next five years, according to the report.
Solar electricity generation has also continued to increase substantially. During the first seven months of 2026, solar power generation rose by 15.5 per cent year-on-year to 802.4 billion kilowatt-hours, accounting for roughly one-eighth of China’s total electricity generation during the period.
The latest capacity figures reflect years of substantial investment in solar manufacturing and deployment across the country. China has developed extensive capabilities across the solar value chain, from the production of photovoltaic materials and components to the manufacturing and installation of solar panels and large-scale renewable energy projects.
However, the new milestone comes as the pace of solar capacity additions in China has slowed compared with the exceptional growth recorded during the previous year.
China added approximately 86 GW of solar capacity during the first seven months of 2026, a significant figure but considerably lower than the extraordinary pace recorded in May 2025 alone, when the country installed around 93 GW of new solar capacity.
The slowdown has been linked partly to changes in China’s renewable energy policy. A major policy overhaul ended guaranteed revenue arrangements for wind and solar projects, prompting changes in the way renewable energy investments and projects are developed.
Despite the moderation in new installations, the overall scale of China’s solar industry continues to reshape the country’s electricity mix. The achievement of more than 1.2 terawatts of installed solar capacity demonstrates the increasingly central role renewable energy is playing in meeting China’s growing electricity demand.
The development is also significant for the global energy transition. As the world’s largest solar market and a major supplier of solar technology and equipment, China’s decisions regarding renewable energy investment, manufacturing and policy have implications far beyond its borders.
With substantial investment expected to continue over the coming years, China is positioned to maintain its leading role in solar energy even as the pace of capacity growth adjusts to changing market and policy conditions.
The overtaking of coal by solar therefore represents more than a shift in installed capacity. It signals a major transformation in the structure of China’s power sector and further underscores the growing importance of renewable energy in the country’s long-term energy strategy.
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