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China energy security
EconomyChina Economy

China’s solar surge nears historic milestone – even as Beijing slams brakes on sheer scale

Coal capacity is projected to lose its long-held crown this year, despite a pivot from raw solar panel expansion to quality

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Solar panels in Delingha, northwest China’s Qinghai province, on July 9. Photo: Xinhua
Alice Li

Solar is poised to overtake coal as China’s largest source of installed power capacity this year, as Beijing steps up its green transition with a renewed emphasis on efficiency, quality and orderly growth over sheer scale.

Total installed solar capacity reached 1.27 billion kilowatts (kW) by the end of June and was projected to surpass coal before the end of the year, state-run People’s Daily reported on Wednesday, citing the China Photovoltaic Industry Association (CPIA).

Solar power generation also surged more than 40 per cent year on year in the first half of 2026, meeting one-third of peak electricity demand during midday heatwaves.

Reflecting the transition, coal-fired power generation accounted for less than 50 per cent of total electricity generation for the first time on record in the first half of the year, according to the latest data from the National Energy Administration (NEA), with output totalling 2.5 trillion kilowatt-hours.
The growth in solar comes as Beijing continues to place renewable energy at the centre of its climate and energy strategy, with the government targeting further expansion in solar and wind power capacity as part of efforts to meet the country’s 2030 carbon-peak goal.

Under a road map for renewable energy targets over the next five years released last week, total installed solar and wind capacity was projected to exceed 2.8 million kW by 2030, up from 1.84 million kW in 2025.

That would put renewable energy at more than half of total installed capacity, generating 30 per cent of electricity output by the end of the decade, according to the plan.

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