2025 will see a significant change for the EU solar industry,with new installations expected to decrease to 65.1GW,marking a 0.7%fall from 2024’s 65.6GW and representing the bloc’s first annual decline since 2016.
According to the 2022 EU Solar Strategy,growth is expected to remain sluggish in 2026 and 2027,before accelerating in 2028 and 2029.Annual additions are projected to reach 67GW by 2030,which is roughly equivalent to 2025 levels.This leaves the EU at risk of missing its long-term target of 750GW,raising concerns over the delivery of its climate and energy goals.
SolarPower Europe CEO Walburga Hemetsberger highlights the symbolic significance of this modest drop.In 2025,solar accounted for 13%of EU electricity generation and became the bloc’s largest single power source in June,underscoring its growing role in the energy system.She is calling for decisive action from policymakers,including stronger electrification frameworks,improved system flexibility,and expanded energy storage,to ensure that solar continues to lead Europe’s transition.
The slowdown is driven by a sharp contraction in the residential rooftop market.Following the energy crisis,many countries cut or scrapped support schemes,while reduced household energy prices lowered the urgency for homeowners to invest.Residential installations fell from 28%of new capacity in 2023 to 14%in 2025.
Utility-scale projects are now leading growth,accounting for over half of new EU installations for the first time,but they face profitability pressures from increased negative price hours,which create investor uncertainty.In terms of the market,Germany and Spain retain the top spots,while France rises to third and Romania and Bulgaria enter the top 10 for the first time.Meanwhile,Italy and the Netherlands have seen declines due to policy and market shifts.
The report outlines pan-EU policy recommendations,including redefining energy security,prioritising renewables,simplifying permitting,revitalising rooftop solar,and strengthening supply chain resilience.Addressing these issues is critical to reactivating the solar market and advancing long-term climate objectives.
