BEIJING — China’s State Council has released its carbon-peaking action plan for the 15th Five-Year Plan period, setting a target of more than 2.8 billion kilowatts, or 2,800GW, of combined wind and solar generating capacity by 2030.

According to the policy document published by the Chinese Government , China also aims to raise the share of non-fossil energy in total energy consumption to 25% by 2030. The document is dated 5 July 2026 and was publicly released on 14 July.

The policy extends beyond new generating capacity

The action plan calls for continued development of large wind and solar bases while supporting distributed photovoltaic systems and the expansion of concentrated solar power.

It also supports direct green electricity connections, local renewable energy access to distribution networks and integrated development involving power generation, grids, electricity demand and storage.

To improve the power system’s ability to accommodate renewable energy, the plan promotes new-type and long-duration energy storage as well as the development of virtual power plants. This indicates a shift from focusing only on installed capacity towards the storage, dispatch and effective use of renewable electricity.

Zero-carbon factories, building-integrated solar and recycling

China plans to establish approximately 100 national-level zero-carbon industrial parks and about 500 zero-carbon factories during the five-year period. The plan also supports industrial green microgrids, direct green electricity supply and digital energy management.

The document calls for further development of building-integrated photovoltaics and improved recycling of retired wind and solar equipment. These measures extend solar policy across the full equipment lifecycle, from manufacturing and operation to retirement and material recovery.

What does this mean for Malaysia?

The policy applies only to China and does not directly alter Malaysia’s Solar ATAP, SuRIA, corporate solar or electricity tariff arrangements.

However, China remains a major part of Asia’s solar manufacturing and technology supply chain. Changes in Chinese demand for high-efficiency modules, batteries, inverters and energy-management systems could influence product development and supply-chain trends across the region.

For Malaysian commercial and industrial users, the more relevant development is the growing integration of solar generation, battery storage and energy management. Companies assessing solar projects may need to consider daytime consumption, demand management, system monitoring, warranty responsibilities and long-term maintenance, rather than comparing system prices alone.

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