China leads the global solar panel market with an 80% share, significantly outpacing the EU and US in capacity.
China has solidified its position as the global leader in solar energy, with its installed solar photovoltaic (PV) capacity reaching nearly double that of the European Union (EU) and three times that of the United States, as reported by a recent ZeroHedge article. The data, compiled by Bruegel and visually represented by Visual Capitalist's Bruno Venditti, underscores China's significant influence on the renewable energy sector.
As of 2022, China's solar capacity stands at a staggering 393 gigawatts (GW), while the EU trails with 205 GW and the US with 113 GW. This growth reflects a continuing trend, with solar energy accounting for three-quarters of renewable capacity additions globally in 2023, primarily concentrated in Asia, the EU, and the U.S.
China's solar industry has experienced a compound annual growth rate (CAGR) of approximately 25% since 2017, outpacing the 21% CAGR in the US and 16% in the EU. This rapid expansion is attributed to China's dominance over the solar panel supply chain, controlling about 80% of the market.
The solar sector has also been a significant source of employment in China, creating jobs for 2.76 million individuals, with roles in manufacturing, construction, installation, and operations and maintenance. By comparison, the EU and the US solar industries employ 648,000 and 264,000 individuals, respectively.
The International Energy Agency (IEA) projects that China will account for nearly 60% of the new renewable capacity expected to become operational worldwide by 2028. This growth comes even after the country phased out national subsidies in 2020 and 2021, with China anticipated to reach its 2030 target for wind and solar PV installations by 2024—six years ahead of schedule.
