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Solar Power Surpasses Coal as China's Top Energy Source
Utilities · Alternative Power Generation · yonhap_finance · 2026-09-01
China has reached a major milestone as solar power capacity overtakes coal, marking a significant shift in the nation's energy landscape.
What Happened
Energy Shift: Solar power has officially overtaken coal to become the largest source of power generation capacity in China. As of the end of July, solar installations accounted for 31.5% of the country's total capacity, signaling a major milestone in its green energy transition.
Investment and Supply Chain: China plans to invest over 2 trillion yuan in solar energy over the next five years, maintaining its dominant position in the global supply chain. Solar power generation grew by 15.5% year-on-year during the first seven months of this year.
Policy Adjustments: The pace of new installations has slowed following the government's decision to phase out guaranteed profit schemes for wind and solar projects. Monthly capacity additions have moderated from the peak of 93GW seen in May last year to about 86GW for the first seven months of this year.
Future Outlook: Solar energy now accounts for approximately one-eighth of China's total power generation. Despite the policy shifts, the nation's commitment to renewable energy remains a central pillar of its long-term economic and environmental strategy.