Issue Brief

Solar Power in G20 Countries: Accelerating the Global Renewable Energy Transition

Introduction

Solar power has emerged as one of the most transformative pillars of the global energy transition. As climate change, energy security concerns, industrial competitiveness, and rising electricity demand reshape the world economy, G20 countries are increasingly positioning renewable energy at the centre of their respective national economic and energy policies.

The G20 economies account for nearly 85% of global GDP, close to 80% of global carbon emissions, and almost 80% of global energy consumption.

Solar Power and the G20 Energy Transition

Collectively, G20 economies are also driving the global transition to clean energy. Advanced economies and China dominated G20 renewable energy funding in 2023, providing 95% of all public support. Amongst all the renewable energy sources, supported by falling costs, expanded manufacturing, better storage, and strong policy support, solar energy has emerged as a standout renewable technology. China, the United States, and India now lead the world in solar energy adoption and renewable manufacturing. Solar PV is set to dominate approximately 80% of global renewable capacity expansion over the next five years, fuelled by cost-competitiveness and streamlined permitting. Other key contributors include wind, hydro, bioenergy, and geothermal energy.

In 2025, annual solar PV installations grew by roughly 12% to exceed 600 GW, bringing global cumulative solar capacity to approximately 2,800 GW-the highest of any energy technology worldwide. A record 30 countries added over 1 GW of solar in a single year, nearly doubling 2020 levels. Simultaneously, global wind capacity additions spiked by almost 40% to hit a record 160 GW, overcoming persistent supply chain hurdles.

Government Financial Support and Renewable Expansion

Governments are planning to replace fossil fuel-based electricity generation with cleaner alternatives, driven by climate commitments, geopolitical and security concerns, industrial policy priorities, technological innovation, and declining renewable energy costs. Government financial support has become one of the most important drivers of renewable energy deployment across G20 economies. Support mechanisms include direct grants, concessional financing, feed-in tariffs, feed-in premiums, tax incentives, sovereign guarantees, and subsidised infrastructure support. Governments are also investing in grid modernisation, storage integration, renewable transmission systems, and state-owned renewable energy enterprises.

According to recent global assessments, annual government financial support for renewable energy across G20 countries stood at approximately USD 169 billion as of 2024. However, experts estimate that this support may need to increase to nearly USD 336 billion annually to achieve the global target of tripling renewable energy capacity by 2030. Government intervention remains essential because renewable energy projects require high upfront capital investment, while grid integration and storage infrastructure demand long-term public investment and regulatory certainty. The importance of public support became more visible following the Russia–Ukraine conflict, which accelerated global energy security concerns.

Technology, Innovation and Industrial Competitiveness

G20 countries dominate global clean energy innovation and technological leadership. Collectively, they account for nearly 91% of global environmental technology patents, with China, Japan, Korea, and the United States leading research and development. Emerging innovations include next-generation solar cells, floating solar systems, AI-enabled grid optimisation, smart transmission networks, battery storage systems, and green hydrogen integration. Increasingly, governments are also coming forward with strong support for renewable energy research and development, recognising that innovation will be central to future competitiveness.

Public investment in R&D is now being directed toward advanced solar technologies, energy-efficient manufacturing, storage systems, and low-carbon industrial infrastructure. Digitalisation is further transforming renewable energy systems through real-time grid management, predictive maintenance, intelligent energy distribution, and energy-efficient infrastructure planning.

Key Challenges Facing G20 Countries

Despite strong progress, major structural challenges continue to remain. Several G20 countries, including South Africa, Indonesia, and India, continue to rely heavily on coal-based electricity generation. Balancing industrial growth, employment security, energy affordability, and climate commitments remains politically and economically complex. Grid integration presents another major challenge. Rapid solar deployment requires large-scale investments in transmission infrastructure, energy storage, and flexible electricity markets. Financing gaps remain particularly severe in emerging economies, where borrowing costs continue to constrain renewable investments. In addition, supply chain concentration, critical mineral dependence, and geopolitical tensions surrounding clean technology manufacturing are increasingly shaping the global renewable energy landscape.

Recommendations and Conclusion

There are a few ways G20 economies can advance the global energy transition.

First, G20 economies must nearly triple their renewable energy capacity from approximately 3.4 TW today to roughly 9.4 TW by 2030, leveraging the 33.6 million square kilometres of suitable land they possess. Second, governments need to enhance public investment while creating robust frameworks to unlock large-scale private financing for clean energy infrastructure. Third, international cooperation must prioritize building resilient supply chains and facilitating seamless technology sharing across borders.

To conclude, solar energy is now far more than an environmental goal-it is a cornerstone of economic leverage, industrial leadership, and geopolitical resilience. As the primary force shaping global energy, the G20's actions today will decide the trajectory of the world's clean energy transition.