Solar power is taking over the energy market. More homes, businesses, and countries are choosing the sun as their primary power source. But where is this growth happening the fastest? Are large solar farms leading the charge, or is rooftop solar taking over?
1. The global solar PV market grew by 22% in 2023, reaching a record 1,200 GW cumulative installed capacity
Solar power adoption is accelerating. In 2023 alone, global solar PV capacity grew by 22%, pushing total installed capacity past 1,200 gigawatts. This rapid expansion reflects increasing investments in solar technology, declining costs, and growing government support.
For businesses, this means more opportunities in solar installation, panel manufacturing, and energy storage. Homeowners looking to invest in rooftop solar can feel confident that they are part of a rapidly expanding market.
2. Utility-scale solar (solar farms) accounted for 60-70% of new solar installations globally in 2023
Large solar farms are leading the charge in new solar installations. Their economies of scale make them more cost-effective than smaller rooftop systems. Governments and corporations prefer solar farms because they can generate massive amounts of electricity in one place, making it easier to feed power into the grid.
For investors, this trend signals strong growth in utility-scale solar projects. Developers should focus on securing land and grid connections as competition increases.
3. Rooftop solar installations grew by 15-20% annually over the past five years, compared to 25-30% for solar farms
While rooftop solar is growing, it isn’t expanding as quickly as large-scale solar farms. The difference in growth rates is largely due to high upfront costs and regulatory hurdles that make rooftop solar adoption slower.
Homeowners interested in solar should act now before incentive programs phase out. Businesses with large rooftops should explore solar installation to cut energy costs and reduce reliance on the grid.
4. China, the U.S., and India accounted for 70% of new solar farm installations in 2023
These three countries are leading the world in solar farm growth. China remains the top player, with massive government investments in renewable energy. The U.S. and India are also rapidly scaling up their solar capacity to meet climate goals and reduce fossil fuel dependence.
Companies operating in these regions should explore partnerships and funding opportunities in the solar sector. Entrepreneurs can focus on providing services such as panel cleaning, maintenance, and energy storage solutions.
5. Residential rooftop solar grew 25% in the U.S. in 2023, adding over 6 GW of capacity
Despite solar farms growing faster, rooftop solar in the U.S. is still seeing strong growth. More homeowners are choosing to install panels due to rising electricity prices and improved financing options.
If you’re considering solar, now is a great time to act. Many states offer incentives, and the federal Investment Tax Credit (ITC) makes solar more affordable.
6. Solar farms dominate in large-scale deployment, with projects ranging from 50 MW to over 1 GW
Solar farms are built to power thousands, even millions, of homes at once. These massive installations allow energy providers to supply clean electricity at lower costs.
Investors should look at solar farm development as a long-term strategy. While projects take time to complete, the demand for clean power ensures steady growth.
7. The average cost of utility-scale solar PV dropped by 82% from 2010 to 2023
The dramatic cost decline in solar technology has made utility-scale solar farms much more competitive with fossil fuels. The biggest driver of this price drop is improved panel efficiency and large-scale manufacturing.
For businesses and investors, this means solar projects now have a lower barrier to entry.
8. Rooftop solar costs dropped by 70% in the same period but remain higher per watt than solar farms
Rooftop solar has become much more affordable, but it still costs more per unit of energy than large solar farms. This is because rooftop installations are smaller, require more customization, and involve additional labor costs.
Homeowners should compare financing options to maximize savings. Businesses can explore leasing models to reduce upfront investment.
9. Battery storage additions increased alongside solar, with 60% of new U.S. solar farms including storage in 2023
Energy storage is becoming a critical part of solar expansion. More than half of new solar farms now include batteries to store excess power for later use.
For businesses, this means solar energy can be a 24/7 power source rather than just daytime electricity. Homeowners investing in solar should consider pairing panels with battery storage to maximize savings.
10. The global solar PV industry is expected to exceed 2,500 GW installed capacity by 2030, with solar farms leading
Solar power is projected to more than double by 2030, with utility-scale projects leading the way. Governments and corporations are committing to renewable energy at unprecedented levels.
Investors should position themselves in this booming industry. Companies in construction, manufacturing, and energy storage can benefit from this massive growth.
11. India aims for 280 GW of solar by 2030, with 75% expected from solar farms
India is setting aggressive solar targets, and most of this growth will come from large-scale farms. The country is focusing on building solar parks in desert regions and underutilized land.
Companies interested in the Indian solar market should look for joint ventures with local developers. Entrepreneurs can provide solutions for grid integration, maintenance, and energy storage.
12. Europe added 56 GW of solar in 2023, with commercial & residential rooftop solar leading in Germany
Germany continues to be a rooftop solar leader, with businesses and homeowners driving most of its new capacity. This trend is due to strong government incentives and high electricity costs.
For businesses, investing in rooftop solar is becoming a necessity rather than a luxury. Homeowners can take advantage of feed-in tariffs and net metering programs to maximize returns.
13. U.S. rooftop solar penetration is 4% of households, expected to reach 15% by 2035
While rooftop solar adoption is growing, it still has a long way to go. With projections showing it could triple by 2035, there’s a significant market opportunity.
Solar installers and financing companies should focus on simplifying the buying process to attract more customers.
14. Community solar projects grew by 20% in 2023, bridging the gap between rooftop and utility-scale solar
Community solar allows people to benefit from solar energy without installing panels on their homes. These projects are expanding rapidly as more consumers seek affordable renewable energy.
Homeowners who cannot install rooftop solar should consider joining a community solar program. Developers can tap into this market by creating new shared solar projects.
15. Net metering policies impact rooftop solar growth, with rollbacks slowing adoption in some U.S. states
Net metering, which allows solar users to sell excess electricity back to the grid, is a crucial incentive. However, policy changes in some states have made rooftop solar less attractive.
Homeowners should check their state’s net metering policies before installing solar. Businesses can explore battery storage solutions to maximize energy savings even without strong net metering programs.
16. Corporate solar power purchase agreements (PPAs) reached 35 GW globally in 2023, mostly from solar farms
Large corporations are increasingly turning to solar to power their operations. Power purchase agreements (PPAs) allow companies to buy electricity directly from solar farms, locking in low energy costs and reducing carbon footprints.
Tech giants like Amazon, Google, and Microsoft have been among the biggest adopters, signing massive PPAs to fuel their data centers. Businesses that consume large amounts of electricity should consider PPAs to secure long-term savings.
Smaller companies can explore community solar or shared PPAs to access clean energy at competitive rates.
For solar developers, corporate PPAs represent a huge opportunity. By securing long-term contracts with businesses, developers can guarantee revenue and attract more investors.
17. The U.S. Inflation Reduction Act (IRA) allocated $369 billion for clean energy, benefiting both solar farms and rooftops
The U.S. government is heavily investing in clean energy, with solar power being a major focus. The Inflation Reduction Act (IRA) offers tax credits, grants, and loans to accelerate solar adoption.
This means lower costs for both homeowners and businesses installing solar. The act also supports domestic solar panel manufacturing, which could lead to even cheaper solar equipment in the coming years.
Homeowners should take advantage of the 30% federal tax credit available for solar installations. Businesses should explore grants and incentives to cut upfront costs. Developers should look at funding opportunities for large-scale solar projects.
18. Distributed solar (rooftop + community) surpassed 50 GW in the U.S. in 2023
Distributed solar—systems installed on rooftops, small businesses, and community projects—is expanding rapidly in the U.S. With over 50 GW of capacity, it’s becoming a major part of the electricity mix.
The biggest advantage of distributed solar is that it reduces strain on the power grid. Instead of relying on centralized power plants, energy is produced where it’s needed, improving reliability.
For property owners, investing in rooftop solar now ensures long-term energy independence. For policymakers, supporting distributed solar can enhance grid stability and create local jobs.
19. Texas led U.S. solar farm growth in 2023, adding over 8 GW of utility-scale capacity
Texas is emerging as a solar powerhouse, adding more utility-scale solar capacity than any other U.S. state in 2023. The state’s vast open land, strong solar potential, and business-friendly policies have attracted billions in investment.
While Texas is often associated with oil and gas, the state is quietly becoming a leader in renewable energy. Companies looking to develop solar projects should explore Texas due to its favorable market conditions and strong energy demand.
Homeowners and businesses in Texas can benefit from the state’s growing solar infrastructure by locking in long-term energy savings.
20. Australia has one of the highest rooftop solar adoption rates, with 3 million homes (30%) having solar panels
Australia is setting the standard for rooftop solar adoption. With one in three homes now equipped with solar panels, the country has proven that rooftop solar can be mainstream.
The success is largely due to high electricity prices, strong government incentives, and abundant sunshine. Other countries looking to expand rooftop solar adoption can learn from Australia’s policies and financing models.
Homeowners in other regions should follow Australia’s lead by taking advantage of local incentives and financing options to install solar.
21. Germany’s rooftop solar capacity surpassed 70 GW in 2023, leading Europe’s decentralized solar market
Germany continues to dominate Europe’s rooftop solar market. The country’s focus on decentralized energy production has made rooftop solar a key part of its energy transition.
One of the main drivers is Germany’s feed-in tariff program, which allows homeowners and businesses to sell excess electricity back to the grid at favorable rates. While some countries are phasing out similar programs, Germany’s success shows that well-structured incentives can drive mass adoption.
For homeowners in Europe, Germany’s success proves that rooftop solar is a viable and profitable investment. Businesses should explore self-consumption models to reduce energy costs.
22. Brazil’s rooftop solar market grew by 50% in 2023, reaching over 20 GW installed capacity
Brazil is experiencing a rooftop solar boom, with installations growing by 50% in just one year. The country’s rising electricity prices and improved financing options are pushing homeowners and businesses toward solar.
One of the biggest drivers is net metering, which allows solar users to receive credits for excess energy sent to the grid. This has made rooftop solar an attractive investment for millions of Brazilians.
For investors, Brazil represents one of the fastest-growing solar markets in the world. Solar companies should look to expand operations in the region to capture this surging demand.
23. Global solar employment reached 4.3 million jobs in 2023, with most in solar farm construction
The solar industry is creating jobs at an incredible pace. Over 4.3 million people are now employed in solar energy worldwide, and most of these jobs are in large-scale solar farm development.
This highlights the economic benefits of transitioning to clean energy. Countries investing in solar aren’t just reducing emissions—they’re also creating thousands of jobs in manufacturing, installation, and maintenance.
For workers looking to enter a growing industry, solar presents a long-term career opportunity. For policymakers, investing in solar can drive both economic growth and sustainability.
24. Floating solar farms (floatovoltaics) grew by 25% in 2023, led by China and Southeast Asia
Floating solar, or floatovoltaics, is emerging as an innovative solution for land-constrained regions. These solar panels are installed on bodies of water, such as reservoirs and lakes, reducing land use conflicts.
China and Southeast Asia are leading the way, with massive floating solar projects helping to expand clean energy capacity without taking up valuable farmland.
For developers, floating solar presents a unique business opportunity. Governments looking to expand renewable energy should consider incentivizing floating solar installations.
25. Agrivoltaics (solar + farming) increased by 30% globally, expanding the versatility of solar farms
Agrivoltaics is a new approach where solar panels and agriculture coexist. Instead of competing for land, solar farms are designed to allow crops or livestock to thrive underneath them.
This method is particularly beneficial in drought-prone areas, where solar panels can provide shade and reduce water evaporation. Countries with large agricultural sectors should explore agrivoltaics as a dual-benefit solution.
26. The average rooftop solar payback period is now 6-8 years, compared to 10+ years a decade ago
Rooftop solar is becoming a faster return on investment. Thanks to declining costs and improved efficiency, homeowners can now recoup their investment in as little as 6-8 years.
To maximize savings, homeowners should compare multiple installers and take advantage of available tax credits. Businesses should explore power purchase agreements to reduce upfront costs.
27. Solar farms require 5-10 acres per MW, while rooftop solar requires no additional land
One of the biggest advantages of rooftop solar is that it doesn’t require extra land. Unlike utility-scale solar, which needs large tracts of land, rooftop solar makes use of existing buildings.
For urban areas with limited space, rooftop solar is the best option. Rural areas, on the other hand, can benefit from large-scale solar farms where land availability isn’t an issue.
28. Hybrid solar-wind farms increased by 40%, optimizing land use for renewable generation
Combining solar and wind energy on the same site is becoming more common. Hybrid projects can generate power continuously, since wind often picks up at night when solar isn’t available.
Developers should consider hybrid projects to maximize land use and create more consistent energy output.
29. China alone added 150 GW of solar in 2023, with over 70% from large-scale solar farms
China remains the world leader in solar power. The country is installing solar at an unprecedented rate, with most of the new capacity coming from utility-scale projects.
This level of investment is setting the global benchmark. Other countries looking to scale their solar programs should study China’s approach to large-scale deployment and policy support.
30. Solar will be the dominant electricity source by 2050, with solar farms driving most of the expansion
By mid-century, solar is expected to be the world’s main source of electricity. Large-scale solar farms will supply the bulk of this energy, but distributed rooftop solar will also play a significant role.
For businesses, investing in solar now means securing long-term energy savings. Homeowners should consider rooftop solar to reduce costs and gain energy independence. The solar revolution is here—those who act now will reap the benefits.
wrapping it up
Solar energy is expanding at an incredible pace, and both rooftop solar and solar farms are playing crucial roles in this growth. However, large-scale solar farms are leading the way due to their cost-effectiveness, scalability, and ability to generate massive amounts of electricity for the grid.
