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China's Solar Capacity Tops Coal by One Gigawatt

Years of rapid photovoltaic build‑out produced a slim capacity lead that followed Beijing's removal of guaranteed solar prices and a steep fall in new projects.

Overview

  • China's energy authority reported that at the end of July solar photovoltaic capacity reached 1,286 gigawatts compared with 1,285 gigawatts of coal, making solar the country's largest installed power source by a one‑gigawatt margin.
  • State television put solar at about 31.5 percent of total installed generation capacity, but capacity does not equal output because coal plants can run continuously while solar only generates when the sun shines.
  • New solar additions have slowed sharply, with the energy authority saying January–July installations were 62 percent below the same period last year after Beijing removed price guarantees for solar projects in mid‑2025.
  • Coal remains central to China's energy security and industry because it provides cheap, on‑demand electricity and supplies feedstock through coal gasification for chemicals that would otherwise come from imported oil.
  • The milestone reflects large-scale deployment concentrated in western and northwestern provinces and underscores that China can simultaneously drive global clean-technology supply chains while still relying heavily on coal for power and industrial needs.