Overview
- By the end of July 2026 China’s installed solar capacity reached 1,286 gigawatts, making solar the single largest source of generation capacity in the country according to National Energy Administration figures.
- Official data show renewables provided about 41.2% of electricity in the first half of 2026 while coal’s share of generation fell below 50% for the first time on record.
- Policy changes that ended guaranteed revenue for wind and solar have slowed the pace of new installations, with 86 GW added in the first seven months of 2026 compared with a burst of additions in 2025.
- Grid constraints and rising curtailment mean much of the new solar capacity is not always converted into usable power, and coal remains essential for on-demand reliability for industry and peak loads.
- China still dominates the solar supply chain, produces roughly 80% of world modules, and plans roughly two trillion yuan of sector investment over the next five years, making grid upgrades and policy clarity the key next tests.