Top 5 Countries Leading Solar Energy Production in 2023: Costs and Capacity Insights

Across the globe, several countries have emerged as pioneers in capturing solar energy, turning sunlight into a vital source of electricity. In 2023, the United States, China, the European Union, Brazil, and India stand out as the foremost solar energy producers, according to the International Energy Agency (IEA).

Once a niche sector, solar power is now recognized worldwide as a credible solution to reduce reliance on fossil fuels and combat climate change.

Highlights

• China dominates global solar energy production, installing over 105 GW of photovoltaic (PV) capacity in 2022.
• The European Union, United States, Brazil, and India also rank among the top solar energy producers.
• A gigawatt (GW) measures electrical power output.
• Photovoltaic (PV) technology efficiently converts sunlight into electricity.

1. China

As the world’s most populous country with the largest carbon footprint, China’s aggressive push toward renewable energy is pivotal. The 2021 U.S.-China Joint Glasgow Declaration underscored both nations’ commitment to the Paris Agreement and global climate initiatives.

In 2022, China’s National Energy Administration reported installation of more than 105 GW of new PV capacity, bringing the nation’s total to 414 GW. China accounts for 45% of global solar installations, a slight decrease from 52% in 2017, reflecting the expansion of solar markets worldwide.

Most solar panels are deployed in remote solar farms that feed electricity into the grid. Satellite imagery reveals the rapid growth of these vast solar installations across China.

China’s surge in solar power is driven by urgent electricity demands and severe air pollution challenges. Unlike some countries reducing solar incentives, China’s government actively encourages financial support for solar projects.

2. European Union

The European Union, a political and economic alliance of 27 countries, ranks second globally in solar energy production. Increasing auctions for solar projects across member states have lowered costs significantly.

In 2022, the EU added 41.5 GW of solar capacity, capturing 17.6% of the market. Leading countries include Spain, Germany, and Poland, followed by the Netherlands, France, and Italy.

The EU’s total installed PV capacity exceeded 213 GW in 2022, with about 55% coming from residential and commercial rooftop systems. This marks a strong rebound after a decline in 2012 and growth resurgence starting in 2018.

3. United States

The United States continues to advance its solar power leadership by expanding both utility-scale and residential installations. Government incentives have propelled residential solar growth, a rapidly expanding market segment.

In 2022, residential solar capacity increased while utility-scale additions slightly declined compared to the previous year. The U.S. installed 21.1 GW of new solar capacity in 2022, raising its cumulative total to 141.6 GW. As solar costs become increasingly competitive, U.S. solar output is projected to grow steadily.

Quick Fact

According to the IEA’s 2023 report, solar energy reduces global CO2 emissions by approximately 1,336 million tons annually.

4. Vietnam

Vietnam emerged as a solar energy frontrunner in 2020, installing an estimated 11.1 GW of capacity, per the IEA.

Government revisions to tariffs for utility-scale, rooftop, and floating solar projects spurred rapid market growth beyond expectations in 2019 and 2020.

Vietnam’s success is largely due to policies guaranteeing above-market prices for solar producers, resulting in installations five times greater than initial projections. In 2020, Vietnam held 7.7% of the global PV market.

5. Japan

Despite limited land availability due to high population density, Japan ranks among the top solar energy producers with 8.7 GW of new capacity installed in 2020.

Following the 2011 Fukushima nuclear disaster, Japan committed to doubling renewable energy by 2030. Innovative solutions include repurposing abandoned golf courses for solar farms and developing floating solar installations that benefit from natural cooling.

Understanding the International Energy Agency and PV Technology

Founded in 1974, the International Energy Agency (IEA) promotes global energy security and sustainable development through expert collaboration. Its Photovoltaic Power Systems Program, launched in 1993, accelerates the adoption of solar energy worldwide.

What Are GW and PV in Solar Energy?

A gigawatt (GW) quantifies electrical power, while photovoltaic (PV) technology converts sunlight directly into electricity using solar cells, each producing 1–2 watts.

Solar Energy’s Role in Global Electricity Demand

In 2022, solar energy accounted for 6.2% of the world’s electricity demand, underscoring its growing importance in the global energy mix.

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