•A state-of-the art review and discussion is presented for the inter-building effect.•A concise summary of the research methods and tools is made.•The impact degree of the IBE on building energy and solar energy use in different climate zones is summarized and analysed.•Outlooks and recommendations for inter-building effect can facilitate its further development. With the continuous advancement of urbanization, the impact of inter-building effect on urban energy use has been concerned. This paper makes a comprehensive review of the correlation between inter-building effect and building energy and solar energy use for the first time. For cities with different climate, the impact of inter-building effect on building energy consumption including cooling, heating, and lighting are discussed and quantitatively summarized. Besides, the review and discussion on the impact of inter-building effect on indoor thermal comfort shows that there is insufficient research and should be paid more attention in this field. From the different output forms of solar energy systems, the impact of inter-building effect on the BIPV system and STC system is also reviewed and quantitatively summarized. A concise summary of the research methods of the IBE is made and the software used for modeling is discussed. The review found that the influence degree of the inter-building effect varies greatly with different climatic zones. Considering the inter-building effect to guide early urban designing can greatly reduce building energy consumption and increase solar energy utilization. Some limitations of the current research, as well as general recommendations for the future are discussed. Future work requires engineers and scientists in the building industry and beyond to work together to contribute to the sustainable development of urban energy use.