China overtakes coal as solar capacity tops milestone amid EV boom

China has surpassed coal in installed electricity capacity, with solar at 1,288 GW edging out coal at 1,285 GW and solar accounting for about 31.5% of total capacity; however, solar generation remains lower than coal on a per‑unit basis due to capacity factors. In H1 2026, wind and solar combined produced 24.6% of electricity while coal generated 49.7%, marking the first time coal’s share fell below half. Solar installations continue to grow despite tariff changes, supporting China’s booming EV market and climate goals, though long‑term coal use persists due to contracts and storage challenges, even as emissions dipped about 1% in Q2 thanks to reduced oil use in transport.