Revamped power sectors could help China make the most of a historic energy transition. Indeed, projections indicate that it will outpace coal capacity with its solar installations by 2026. As the world’s largest solar market, China has experienced remarkable growth in solar energy, positioning itself at the forefront of global renewable energy efforts.
By the end of 2025, China is on track to reach well over 1,200 gigawatts (GW) of solar capacity. That’s the equivalent of an average annual increase of 270 GW over the past three years! China is shifting to renewable energy sources, spurring a boom in solar capacity. This push goes ahead in spite of the country still coming to terms with its dependence on coal for energy security.
Growth of Solar Capacity
The majority of solar panels used around the world today are made in China, where recent policies enabled a dramatic acceleration of solar capacity. Solar plants currently operate at an average capacity factor of around 14%, contributing significantly to the overall electricity supply. As China’s solar capacity grows, it outpaces the country’s overall electricity demand, marking a pivotal moment in its energy landscape.
Forecasts suggest that by 2026, the combined capacity of wind and solar energy will account for an impressive 50% of China’s total installed power capacity. There coal’s share is expected to fall to 31%. Coal capacity—mostly due to China—is still on track to increase, reaching around 1,333 GW by the end of that year. China is making a serious push to go cleaner and greener. It fully acknowledges that coal is a huge part of its present energy mix.
Impact on Global Climate Goals
China’s rapid transition to renewable energy is revolutionary — both for the global stage and for China’s domestic market. This transition has enormous ramifications for international climate objectives, too. Andreas Sieber of the climate advocacy group 350.org described this transition as “a remarkable historic inflection point.” He went on to stress the importance of China’s actions for the global fight against climate change. As the world’s largest emitter of greenhouse gases, changes in China’s energy policies could dramatically influence global efforts to reduce carbon emissions.
Even as China grows its solar capacity faster than any other country, it sticks with coal in service of energy security. This dual approach presents both challenges and opportunities for the country as it navigates its path towards a more sustainable energy future.
Future Projections
China’s total generating capacity is expected to increase by more than 400 GW over the next five years. This increase will include all forms of energy generation. Renewables will be the primary source of this growth, further cementing China’s status as the worldwide leader in renewable energy development. The anticipated surpassing of coal by solar power marks a milestone in the nation’s energy transition, showcasing its potential to reshape the global energy landscape.