China's solar capacity overtakes coal as largest power source for first time

China's installed photovoltaic capacity reached 1,286 gigawatts by the end of July, surpassing coal to become the country's largest source of installed power generation capacity for the first time. The milestone marks a fundamental break in a century-old pattern that positioned coal as the dominant power source since the birth of China's electric power industry, according to the National Energy Administration.

Solar Now Commands 31.5% of Total Capacity

Solar power now accounts for 31.5 per cent of China's total installed generation capacity, the NEA reported. The agency described the threshold as a "signature achievement" in the nation's green and low-carbon energy transition.

The shift in installed capacity follows earlier official data showing coal's share of actual electricity generation fell below 50 per cent for the first time during the first half of 2026. However, solar generation still represents a smaller share of total electricity consumption, 13 per cent by the end of July, highlighting the gap between installed capacity and actual output.

Output Surges as China Dominates Global Production

China generated 802.4 billion kilowatt-hours of solar power in the first seven months of the year, a 15.5 per cent increase compared to the same period last year. The country now produces approximately 80 per cent of the world's solar modules and has established what the NEA termed the world's "most complete and most competitive" photovoltaic industrial chain.

The transition carries significant infrastructure implications. According to Beijing, integrating the 31.5 per cent solar share into the national grid will require a multi-trillion-yuan investment to build a modern power network capable of managing the variable output from renewable sources.

Source: South China Morning Post