China's solar capacity tops coal for first time: Where does India stand?

China's solar capacity has overtaken coal for the first time, marking a major shift in its power sector; coal's share of electricity generation also fell below 50 per cent in the first half of 2026

China’s installed solar power capacity has overtaken coal-fired power capacity for the first time, marking a major shift in the country’s energy mix, South China Morning Post reported.

 

China had 1,286 gigawatts (GW) of installed solar photovoltaic capacity by the end of July, accounting for 31.5 per cent of its total installed power generation capacity, according to the National Energy Administration (NEA).

 

The NEA described the development as a “signature achievement” in China’s shift towards a greener and lower-carbon energy system. It said the milestone broke the long-standing dominance of coal, which has been the backbone of China’s power sector for more than a century. Coal’s share of electricity generation fell below 50 per cent in the first half of 2026, the news report said.

 

 

Solar capacity is rising

 

Solar accounted for about 13 per cent of China’s total electricity consumption by the end of July. The country generated 802.4 billion kilowatt-hours of solar electricity during the first seven months of 2026, an increase of 15.5 per cent from the same period a year earlier, the news report said.

 

China has emerged as the dominant player in the global solar industry. It accounts for about 80 per cent of the world’s solar module production and has developed what the NEA describes as the world’s most competitive photovoltaic supply chain, the South China Morning Post report said.

 

The country is also investing heavily in its electricity grid to handle the rapid addition of solar and wind capacity. Grid investment is expected to exceed 5 trillion yuan ($743.8 billion) during the 2026-30 period. The power grid is part of a broader infrastructure push covering what Beijing calls the “six networks”, which also include computing, telecommunications and underground utility networks, the news report said.

 

India’s solar push: How does it compare with China?

 

India is also rapidly expanding its solar power capacity, although it remains behind China in terms of the overall scale of installations.

 

India’s installed solar capacity stood at 164.59 GW as of July 31, 2026, according to the Ministry of New and Renewable Energy. This is a sharp increase from just 2.8 GW in 2014.

 

India’s solar expansion accelerated further in 2025-26. The country added a record 44.61 GW of solar capacity during the financial year, surpassing the government’s target of 34 GW. The addition was also almost twice the previous annual record of 23.83 GW set in 2024-25.

 

The difference in scale between the two countries remains substantial. China’s 1,286 GW of installed solar capacity is nearly eight times India’s 164.59 GW. However, India is expanding its capacity at a rapid pace and has emerged as one of the world’s leading solar growth markets.

 

In June 2026, India overtook the United States in annual solar capacity additions, becoming the world’s second-largest growth market, according to data cited from the International Renewable Energy Agency (IRENA). India added 37 GW of solar capacity in 2025, compared with 34 GW in the US. China remained far ahead, adding 315 GW during the year.

 

India is also expected to eventually cross China’s current milestone in terms of the relative position of solar and coal. Renewable Energy Minister Pralhad Joshi has said India’s installed solar capacity will overtake coal-based capacity by 2036 and could exceed it by nearly 200 GW.

 

AI boom adds to China’s electricity demand

 

China’s renewable energy expansion comes as electricity demand rises due to the rapid growth of artificial intelligence and data centres. The expansion of AI requires large amounts of computing power, which in turn increases demand for electricity. This is making reliable power infrastructure an increasingly important part of the global competition to develop AI capabilities.

 

The trend is visible in Changshu, a city in China’s Jiangsu province. Electricity consumption by data centres and other computing infrastructure exceeded residential air-conditioning demand during the summer, the news report said citing state broadcaster CCTV.

 

The computing sector accounted for nearly half of the increase in the city’s electricity demand, making it the biggest driver of growth in summer power consumption, the news report said.