Solar energy is now the primary source of installed power capacity in China, overtaking coal for the first time
Chinese workers install solar panels on the rooftop of a building at a textile factory in Nantong city, east China’s Jiangsu province
Solar power has become the leading source of installed electricity capacity in China, surpassing coal for the first time in a major milestone for the Asian giant’s energy transition, according to information reported by Bloomberg.
As of the end of July, China reached 1,286 gigawatts (GW) of solar capacity, accounting for 31.5% of its total generation capacity—just one month after solar was still 1 GW behind coal.
According to the National Energy Administration (NEA), coal-fired power generation capacity stood at 1,285 gigawatts. Solar power generation rose 15.5% in the first seven months of 2026 compared to the same period of the previous year, reaching 802.4 billion kilowatt-hours, or roughly one-eighth of the national total.
The milestone marks a turning point in the transformation of the Chinese power system. While still dependent on coal in terms of actual electricity generation, the grid is increasingly dominated by renewables in terms of new capacity additions.
Between January and July, China added 85.65 GW of photovoltaic capacity, a 62% year-on-year drop—a decline that financial news outlet Cailian attributes mainly to the high base effect created by the surge in installations recorded between January and May 2025.