On July 26, 2026, the International Energy Agency (IEA) released its latest Renewable Energy Market Report, which indicated that global solar photovoltaic installed capacity reached a record 180 GW in the first half of 2026, a 30% increase compared to the same period in 2025. This growth far exceeded expectations, driving the total global renewable energy capacity past 4500 GW. Concurrently, the National Energy Administration of China officially released the Action Plan for High-Quality Development of New Energy Storage Industry (2026-2030) on July 25, proposing a storage capacity of 200 GW by 2030 and mandating an increase in the co-storage ratio for PV projects to 20%. These two major signals have drawn intense industry attention.
Solar Capacity Boom: Dual Drive of Cost Reduction and Policy Momentum
The IEA report shows that the solar capacity growth in the first half of the year was mainly driven by the three major markets: China, the United States, and India. China added 68 GW, accounting for 38% of the global increase; the US added 28 GW, benefiting from the sustained impact of tax credits under the Inflation Reduction Act; and India added 22 GW, becoming the third-largest market after surpassing Europe, driven by the "National Solar Mission." Fatimah Birlour, Executive Director of the IEA, stated, "Solar is becoming a main power source for global new power generation, with its Levelized Cost of Electricity (LCOE) having decreased by over 80% in the past decade, making it cheaper than coal in most regions."
Technological Breakthrough: Perovskite/Silicon Tandem Cell Efficiency Reaches New High
On the technological front, Chinese PV company LONGi Green Energy announced on July 20 that its perovskite/silicon tandem cell efficiency reached 34.6%, setting a world record. This breakthrough means that the power of a single module can be increased to over 600 W, significantly reducing the land and installation costs of PV power stations. Industry analysts point out that the commercial mass production of tandem cells is expected to start by the end of 2027, which will further accelerate the replacement of traditional energy by solar power.
China's New Storage Policy: Solving the New Energy Consumption Dilemma
The Action Plan for High-Quality Development of New Energy Storage Industry, released on July 25, proposes six key tasks, including promoting a 30% reduction in storage costs, establishing an independent storage market mechanism, and promoting the integrated "PV + Storage" model. Most notably, the new policy requires that new centralized PV and wind power projects starting in 2027 must co-install storage at a ratio of no less than 20%, and the storage duration must be over 4 hours. Previously, the co-storage ratio was typically 10% to 15%, and this increase has directly doubled the demand for energy storage.
Industry Chain Reaction: Storage Battery Expansion Surge
Following the policy announcement, leading companies such as CATL, BYD, and EVE Energy immediately announced expansion plans. CATL stated that it would build two new energy storage battery factories in Sichuan and Guizhou, with an annual capacity of 40 GWh each, totaling an investment exceeding 30 billion RMB. BYD launched a new generation of "Blade Battery" systems with an energy density increased to 180 Wh/kg and a cycle life exceeding 12,000 times. Research institutions estimate that China's storage battery shipments are expected to reach 250 GWh in 2026, a year-on-year increase of 70%.
Industry Challenges: Grid Upgrades and Material Supply Despite an optimistic outlook, the grid connection of large-scale photovoltaics (PV) and energy storage also puts pressure on the power grid. The IEA report warns that aging grid infrastructure in many regions struggles to handle the volatility of high proportions of renewable energy. Furthermore, the price increases of key energy storage materials—lithium, cobalt, and nickel—by 12%, 8%, and 15% respectively in the first half of 2026 mean that cost pressures cannot be ignored. The China Nonferrous Metals Industry Association suggests accelerating the industrialization of alternative technologies, such as sodium-ion batteries, to reduce reliance on scarce resources.
International Market: Europe Introduces Mandatory Solar Installation Regulations
In Europe, the European Commission passed a new regulation on July 15th, requiring all new commercial buildings to install solar panels on their roofs starting in 2027, and covering residential buildings by 2030. This policy is expected to add an annual demand of 50 GW to the European PV market. Concurrently, countries such as Germany and France have significantly simplified the approval process for PV projects and increased energy storage subsidy standards to align with the goal of increasing renewable energy generation share to 45%.
Outlook: Global Renewable Energy Capacity Addition May Exceed 800 GW in 2026
Based on the first-half performance and the second-half forecast, the IEA has upgraded its prediction for global renewable energy capacity addition in 2026 from the previous 750 GW to 820 GW, with solar accounting for 520 GW and wind power for 280 GW. Pirole emphasizes: "To achieve the 1.5°C temperature control target of the Paris Agreement, the world needs to double renewable energy capacity before 2030. While the current growth rate is encouraging, countries still need to increase investment in the synergy between the grid, energy storage, and policy."
Overall, the explosive growth of solar capacity and the introduction of new energy storage policies in China signal that the global energy transition has entered a "fast track." Investors should focus on the three major tracks: PV manufacturing, energy storage system integration, and smart grid, but must also be wary of raw material price fluctuations and policy implementation risks.
