On July 24, 2026, the National Energy Administration released the '2026 H1 Renewable Energy Development Report', showing that China's total renewable energy installed capacity exceeded the 1.5 billion kW mark, reaching 1.52 billion kW, up 18% YoY. Among them, wind power installed capacity was 450 million kW, solar power 780 million kW, increasing by 12% and 22% respectively. The combined wind and solar power generation accounted for 21.3% in H1, surpassing the 20% milestone for the first time. These figures indicate that China's energy structure transformation has entered an acceleration phase, and the energy dividend period is moving from expectation to reality.
Policy dividends continue to be released, energy transition enters deep water zone
The report stated that in H1 2026, national renewable energy power generation reached 1.8 trillion kWh, equivalent to reducing standard coal consumption by 540 million tons and CO2 emissions by 1.47 billion tons. Li Chuangjun, Director of the New Energy Department of the National Energy Administration, said at a press conference: 'Renewable energy has become the mainstay of China's new installed capacity, accounting for over 85% of new installations in H1 2026. We are moving from the preliminary preparation stage for the 'dual carbon' goals to the substantive transformation stage of the energy system.'
At the policy level, the 'Action Plan for Accelerating Green and Low-Carbon Energy Transition' issued by the State Council in early 2026 proposed that the proportion of non-fossil energy consumption will reach 25% by 2027 and 30% by 2030. To achieve this goal, the country is promoting electricity market reform, improving the renewable energy power consumption guarantee mechanism, and increasing fiscal and financial support. In H1, the scale of green bond issuance increased by 40% YoY, totaling over 600 billion yuan, of which nearly 70% flowed into the new energy sector.
Energy storage industry booms, becoming new engine of energy dividend
Notably, the energy storage industry experienced explosive growth in H1 2026. The report shows that the national new energy storage installed capacity reached 68 million kW, up 150% YoY. Pumped storage installed capacity exceeded 60 million kW, with over 80 million kW under construction. Investment in energy storage increased by 180% YoY, becoming the fastest-growing segment in the new energy industry chain.
Liu Kai, Secretary-General of the China Energy Storage Alliance, analyzed: 'As the proportion of wind and solar power generation increases, the volatility contradiction of the power system becomes increasingly prominent. Energy storage is key to solving this problem. Currently, the cost of lithium-ion batteries has dropped below 0.8 yuan/Wh, and new technologies such as sodium-ion batteries and flow batteries have begun large-scale application. It is expected that by the end of 2026, total energy storage installed capacity will exceed 100 million kW.' He also pointed out that energy storage is not only a 'buffer' for the energy system but also an independent business model - through peak-valley arbitrage, frequency regulation auxiliary services, etc., the annualized return rate of energy storage stations can reach 8%-12%.
Solar and wind: Technological iteration drives cost reduction
In the solar industry, the mass production efficiency of N-type TOPCon cells has exceeded 26.5%, and the cost of HJT modules has dropped below 0.9 yuan/W. In H1 2026, solar module exports increased by 35% YoY, with Europe, the Middle East, and Africa as major incremental markets. Notably, the proportion of distributed solar installations in China rose to 65%, with household solar becoming a major driver. The National Energy Administration stated that it is promoting the whole-county rooftop distributed solar development pilot, planning to cover 80% of counties nationwide by the end of 2026.
In the wind power sector, offshore wind power is developing rapidly. In H1 2026, new offshore wind installed capacity reached 6.8 million kW, up 90% YoY. 16 MW large-capacity wind turbines have been put into batch operation in Fujian, Guangdong and other places, with the cost per kWh dropping below 0.25 yuan/kWh, for the first time lower than the local coal-fired benchmark electricity price. In addition, wind power hydrogen production projects have begun commercial operation, and million-ton green hydrogen demonstration projects have been built in Inner Mongolia, Gansu and other places.
Investment opportunities: Focus on three directions
Under the energy dividend period, investors should pay attention to the following directions:
- Solar modules and auxiliary materials: N-type cells, inverters, solar glass and other segments have high technical barriers, and leading companies are expected to continue to benefit.
- Energy storage system integration and materials: Lithium battery storage, sodium-ion batteries, compressed air storage and other tracks are in a high-growth period, and top enterprises still have room for valuation increase.
- Energy internet and smart grid: With the increase of new energy penetration, virtual power plants, intelligent distribution networks, and electricity trading platforms are in urgent demand, and related software and hardware enterprises will usher in opportunities.
However, risks also exist. Overcapacity risks in solar and wind industries are looming, with gross profit margins declining in some segments; energy storage safety standards still need to be improved; electricity market reform progress is less than expected. Investors should choose targets with leading technology and healthy cash flow, avoiding blind chasing of high prices.
International perspective: Global energy transition race accelerates
Globally, renewable energy investment is also surging. A report released by the International Energy Agency (IEA) in July shows that global renewable energy investment is expected to exceed US$500 billion in 2026, with China, the United States and Europe as the three main forces. Driven by the EU REPowerEU plan, Europe's new wind and solar installed capacity increased by 25% YoY in H1 2026. The U.S. Inflation Reduction Act continues to take effect, with large-scale energy storage projects queuing for grid connection.
China's advantages in solar manufacturing and battery supply chains are increasingly evident. In 2026, about 80% of global solar module production capacity is in China, and lithium battery capacity accounts for over 70%. However, the United States and India and other countries are promoting localized production through tariffs and subsidy policies, and Chinese companies need to pay attention to trade risks.
Outlook: Energy dividend period will last more than a decade
Many experts said that the energy dividend period is not a short-term phenomenon but a long-term trend for the next ten years. With falling technology costs, strengthened policy support, and improved market mechanisms, new energy will evolve from an alternative energy source to a main energy source. It is expected that by 2030, China's new energy installed capacity will exceed 3 billion kW, accounting for over 40% of annual power generation. Energy storage installed capacity will reach more than 300 million kW.
For investors, the current period is still a window for deployment. However, it should be noted that the energy industry is shifting from 'resource-driven' to 'technology-driven' and 'service-driven'. Sub-sectors such as traditional energy enterprise transformation, new energy enterprises going global, and power data assetization are also worth deep exploration.
Gupindao Financial Navigation will continue to follow developments in the energy field and provide you with professional information and resource navigation. Investors can visit high-quality financial communities such as East Money Blog and Xueqiu for more frontline analysis and interactive views.
