China's wind and solar capacity overtakes thermal power for first time in 2025

by MA Yueran

China's wind and solar power capacity overtook thermal power for the first time in 2025, government data showed, underscoring the country's rapid renewable buildout.

The National Energy Administration said total installed power generation capacity reached about 3.9 billion kilowatts by the end of 2025, up 16.1% from a year earlier.

Installed solar power capacity rose 35.4% to 1.2 billion kilowatts, while wind power capacity increased 22.9% to 640 million kilowatts.

Combined wind and solar capacity exceeded 1.8 billion kilowatts, accounting for nearly half of China's total installed power capacity and surpassing thermal power by roughly 300 million kilowatts, according to the data. It marked the first time renewables have become the dominant source of installed capacity in the world's largest power market.

China added 430 million kilowatts of new wind and solar capacity in 2025, the highest annual total on record. New solar installations reached 315 million kilowatts, while new wind capacity climbed to 119 million kilowatts, a much faster pace than a year earlier.

Analysts said wind power benefited more from recent reforms that require new renewable projects to sell electricity at market prices, as returns proved more predictable than for solar under competitive bidding.

Solar installations showed sharp volatility over the year. Industry data point to a policy-driven surge earlier in 2025 followed by a pronounced slowdown in the second half, as weaker power prices weighed on project economics.

Looking ahead, solar growth is expected to moderate. BloombergNEF forecasts global annual solar additions will expand at a slower pace over the next decade, with China's market facing pressure as incentives fade and returns narrow.

Wind power additions, by contrast, are expected to remain resilient. Industry estimates put China's new wind installations at around 120 million kilowatts in 2026, supported by abundant untapped resources and continued policy backing.

China has set out a series of targets to expand wind and solar capacity over the next decade as part of its updated climate commitments, including plans for a combined capacity of about 3.6 billion kilowatts by 2035.