Solar Power Surpasses Coal in China's Installed Capacity for First Time

Solar energy has overtaken coal as China's largest source of installed power generation capacity for the first time. According to government data reported on Tuesday, China had approximately 1,286 to 1,288 gigawatts of solar capacity by the end of July, compared to 1,285 gigawatts for coal. This milestone follows a trend where combined wind and solar capacity had already surpassed coal in March of the previous year.

Despite the lead in installed capacity, coal remains the dominant source of actual electricity generation. In the first half of the year, coal accounted for 49.7 percent of the energy matrix, while wind and solar combined for 24.6 percent. Solar generation specifically accounted for 13 percent of total electricity consumption by the end of July. The National Energy Administration noted that coal's share of generated electricity dropped below 50 percent for the first time during the first half of the year.

China currently produces about 80 percent of the world's solar modules. While the total fleet of solar installations continues to grow, some reports indicate that new installations slowed this year following a shift from fixed feed in tariffs to market based pricing. The National Energy Administration described the shift as a signature achievement and a breaking of a century long pattern of coal dominance, though it noted that integrating the solar share requires a multi trillion yuan push to modernize the grid.