Effectively mitigating the increasing energy demand sector emissions is seriously considered in China. Under the continuous motivation of the Chinese government, the cumulative installed solar PV capacity in China has occupied 32.63 % of the global in 2019. Unfortunately, a large amount of installed capacity is wasted due to the challenges of grid load and efficient energy storage. Ammonia production from renewable energy may solve the dilemma. This paper analyses the feasibility and potential of using ammonia as a potential low carbon energy storage medium and sustainable fuel. It is calculated that, in China, solar-based ammonia may contribute GHG emission reduction of 158.87 million tons CO₂-eq. in traditional ammonia production industry, and only 45 % of the dessert area with PV system for solar-based ammonia production could meet the energy demand of fuel substitution, which would result in GHG emission reduction of 5347.93 million tons CO₂-eq. in total. As an energy storage medium, liquid ammonia (NH₃) actually packs in more hydrogen than liquid hydrogen (H₂) per same volume and the ammonia infrastructure is quite mature in China current industries. Therefore, in order to make it economically viable, motivative policies on encouraging the development of solar-based ammonia are expected in China.