Historic Turning Point in Global Energy Landscape! China's Solar Power Capacity Officially Surpasses Coal, 12x Larger Than U.S.

China's National Energy Administration announced on Tuesday (1st) that solar power capacity reached 128.6 GW by the end of July, officially surpassing coal to become China's largest power source.

Since 1882, when 15 arc lamps lit up China's first thermal power plant on Shanghai's Bund, coal power has held the top position for 144 years—now overtaken by a single silicon panel.

According to official data, coal power generated 2.5 trillion kWh in the first half of this year, accounting for 49.7% of total generation—still the leader in output. Solar power generated 655.5 billion kWh during the same period. Nighttime and peak-hour electricity demand still relies on coal, but installed capacity represents the upper limit of future capability over the next 25 years. In 1994, coal capacity accounted for over 60% while non-fossil fuels stood at just 25%. By May this year, coal's share had dropped to 32%, while non-fossil fuels rose to 62%.

The 128.6 GW capacity not only makes China the global leader but exceeds the combined solar capacity of all other countries. The U.S. surpassed 100 GW in cumulative capacity in 2021; China's current capacity is over 12 times larger. The U.S. expects to add 43.4 GW this year—the highest since 2002—but China added 71.768 GW in just the first half, 1.65 times the U.S. annual projection.

Experts point to supply chain dominance as the root cause: China leads globally in polysilicon, wafers, cells, modules, and equipment. Over the past decade, costs have dropped over 90%, and U.S. solar projects still heavily rely on Chinese components.

China's average annual solar utilization is only around 1,000 kWh per kW, while coal exceeds 4,000 kWh. The mismatch between midday solar peaks and evening demand peaks requires energy storage and ultra-high-voltage transmission for grid balancing. China is responding with the world's largest energy storage industry and ultra-high-voltage grid. Coal power is transitioning from the 'backbone' to a 'stabilizer' and flexible power source—no longer dominant, but repositioned.

China's solar trajectory may mirror coal's past path: initially dismissed, then relied upon, and ultimately becoming infrastructure as cheap and essential as water. But this time, the world's primary solar production capacity, lowest levelized cost of electricity, and largest application market are all in China's hands.