How Hungary became the world’s solar energy leader

Hungary has quickly become the world leader in solar energy integration thanks in part to generous government assistance programmes.

Solar accounted for 25% of the country’s electricity generation in 2024, more than any other nation, according to data collated by research group Ember. Hungary overtook Chile last year to claim the top spot.

The solar surge has been remarkable — in 2018, the technology made up just 2% of Hungary’s power output. Importantly, solar’s rise has come at coal’s expense — the dirtiest fossil fuel’s share of the mix fell from 15% to 6% over the same period, even as gas declined as well.

And in August 2024, a new monthly record was set when solar made up 37% of Hungary’s electricity generation.

The backstory: Hungary has above-average solar potential, with average solar radiation of 1,280kWh/m². Authorities have harnessed this opportunity through a feed-in tariff programme — whereby homes and businesses are paid a fixed price for any power they sell into the grid — and other incentives.

Under the Solar Energy Plus Programme, for example, the government subsidised rooftop solar installations for around 21,000 households. The scheme, which ran for a year, saw the state covering two-thirds of the cost of a solar-plus-storage installation. “The investments strengthen our country’s energy sovereignty, security of supply, and protect the environment,” according to the government.

More than 300,000 small solar arrays with a combined capacity of 2.7GW, mostly on the roofs of family houses, are now operational in Hungary. Including grid-scale facilities, the country has 7.8GW of installed solar generating capacity, per the energy ministry.

Policymakers want to lift that to 12GW by 2030 as part of their push to get to 90% low-carbon power by then, from 74% in 2024.

Yes, but: The rapid growth in behind-the-meter solar output is making things more challenging for the grid operator, which must constantly work to keep power supply and demand aligned.

“The feed-in-tariff scheme that made this happen has positioned Hungary as a leader in the region when it comes to renewable energy, but the negative prices and the grid challenges also posed by this are an unwanted consequence,” Montel’s Gábor Szatmári wrote in a recent note.

Price caps have partly helped solve the problem, but other incentives are needed to keep the imbalance market functioning optimally, Szatmári said.

Meanwhile, Hungary’s stint at the top of the solar rankings may prove short-lived. Countries like Pakistan — where solar made up 26% of the mix in February 2025, from 10% in the same month two years before — are also on a steep growth trajectory.