Solar overtakes coal in China’s installed capacity: reading the 2026 figures

#The figures

Sources: National Energy Administration (NEA) press conferences and the NEA’s reprint of People’s Daily, 11 September 2026.

#Capacity, not yet generation

The milestone is about installed capacity. In generation, solar supplied about one kWh in eight between January and July. Coal is still the largest generator, although its share of generation fell below 50% for the first time in the first half of 2026. During this summer’s peak, solar typically supplied more than 35% of midday output, according to State Grid data quoted in the same report.

#Why new additions fell

The first half of 2025 was exceptional: 212 GW of PV was connected, and 317 GW over the full year. That peak coincides with the cut-off set by the NDRC and NEA pricing reform (Document No. 136): projects in operation before 1 June 2025 keep their existing price terms, while later projects sell into the electricity market, with a support price set by competitive bidding. The NEA does not attribute the 2026 slowdown to a single cause, but the timing matches.

Cumulative growth continues: China still had 1,272 GW of PV at the end of June, 15.8% more than a year earlier.

#What it means for equipment makers

• Grid behaviour matters more than volume. Utilisation fell to 91.4%. The report calls for PV to move from “depending on the weather” to “dispatchable and predictable”. Grid-support functions in inverters, active and reactive power control, and pairing with storage are what grid-connection tests check.
• Distributed is the larger share. 42.22 GW of the 71.77 GW added in H1 2026 was distributed: rooftop, residential and commercial systems. These products are installed close to homes, so residential EMC limits and installation safety apply.
• Storage keeps growing. 153 GW at the end of June, and a target of 300 GW by 2030 in the 15th Five-Year plan for the new energy system. PCS makers face grid-connection, safety and EMC tests at higher volumes.
• Export markets weigh more. With domestic additions below the 2025 level, overseas markets take a larger share of sales. Each market has its own grid code and certification route, so one product often needs several test programmes.