Solar overtakes coal as China’s top source of power capacity despite rollout slowdown

SOLAR panels are now China’s top source of power capacity, surpassing coal in a key milestone for the country’s green-energy boom.

Solar capacity reached 1,286 gigawatts (GWs) at the end of July, accounting for 31.5 per cent of total installed power generation, CCTV reported, citing China’s National Energy Administration. The China Electricity Council had earlier flagged that solar was just 1 GW behind coal at the end of June.

China remains the dominant player in the global solar supply chain, with investment in the sector expected to top 2 trillion yuan (US$298 billion) over the next five years, the report added.

Solar generation rose 15.5 per cent from a year earlier to 802.4 billion kilowatt-hours in the first seven months of 2026, about one-eighth of the country’s total. 

The solar milestone is happening even as China’s record pace of renewable installations has slowed significantly in 2026, after a policy overhaul ended guaranteed revenue for wind and solar projects.

The country added 86 GWs of solar in the first seven months of 2026, after installing 93 GWs in May 2025 alone, the last month before the new policy went into effect. BLOOMBERG