Solar overtakes coal as China’s largest power source

China's installed solar power capacity has overtaken coal-fired power for the first time, marking a historic shift in the energy mix of the world's largest greenhouse gas emitter. The National Energy Administration announced on Tuesday that solar capacity reached 1,286 gigawatts by the end of July, edging past coal's 1,285 gigawatts to become the country's largest power source by installed capacity.reuters+1

Solar now accounts for 31.5% of China's total installed power generation capacity, according to state broadcaster China Central Television. The milestone ends a coal-dominated power structure that had persisted for 144 years, since China's first thermal power plant was built on Shanghai's Bund in 1882.finance.biggo+2

Solar Growth, Coal's Grip

Despite the landmark in installed capacity, coal remains far ahead in actual electricity generation. Wind and solar combined produced 24.6% of China's power in the first half of 2026, while coal accounted for 49.7% — though that figure marked the first time coal's share dropped below 50%. The gap reflects solar's intermittent nature: solar panels average just over 1,000 utilization hours per year, compared with more than 4,000 for coal plants.miningweekly+2

Solar generation nonetheless rose 15.5% year-on-year in the first seven months of 2026, reaching 802.4 billion kilowatt-hours, or about one-eighth of national output, according to the NEA.businesstimes+1

A Boom That's Slowing

The milestone arrives amid a pronounced slowdown in new solar installations. China added 86 gigawatts of solar in the first seven months of 2026 — a 62% decline from the same period a year earlier, according to the energy authority. The drop followed a policy overhaul that ended guaranteed revenue for wind and solar projects last summer. By comparison, China installed 93 gigawatts in May 2025 alone, the last month before the new pricing regime took effect.yahoo+2

Global Implications

China dominates the global solar supply chain, supplying more than 80% of the world's photovoltaic modules, and investment in the sector is expected to exceed 2 trillion yuan ($298 billion) over the next five years. Liu Zhiqiang, an expert from the China Electricity Council, called the crossover "a milestone in China's green and low-carbon energy transition," adding that a new power system centered on renewable energy "is taking shape at an accelerated pace."gbcode.rthk+1