EU Solar Capacity Growth Declines for the First Time Since 2016

For the first time in nearly a decade, the European Union anticipates a decrease in the addition of new solar photovoltaic capacity this year compared to the previous year. According to the industry association Solar Power Europe, the expected growth for 2025 will fall short of the necessary figures required to meet the EU's target of 750 GW by 2030.

Despite this potential decline, the projected addition of approximately 64 GW remains on a record level, as it would mark three consecutive years of significant solar capacity increases since 2023. The slowdown is largely attributed to households in various EU countries becoming more cautious about installing solar panels for several reasons.

The overall capacity of solar energy continues to rise significantly. If the addition of photovoltaic systems in the EU does indeed fall below that of 2024, it will break an unprecedented streak of annual growth, although the total installed capacity will still see a substantial increase. Just a decade ago, the annual additions were in the single digits in gigawatts, but the pace has accelerated in recent years, with some years seeing capacity additions double. However, since 2023, the expansion has stagnated at a high level of over 60 GW annually. The association notes that a slight increase in capacity is still possible in 2025, projecting a total installed capacity of 400 GW by year-end, which is double the amount recorded three years ago.

The slowdown in solar capacity growth is attributed to the expiration of support measures in several countries and a general decrease in electricity prices. Consequently, households are less inclined to install solar panels, a trend that cannot be compensated for by the ongoing boom in small-scale solar installations, particularly in the Netherlands and Germany.

Conversely, larger solar installations continue to see robust growth, significantly driven by Spain. Even though the pace of solar expansion may have slowed, the total installed capacity is still growing dramatically. This growth has led to a milestone where, in June, the EU generated more electricity from solar power than from any other energy source, with 13 countries setting new records for solar energy production. This achievement highlights solar energy's role in meeting high electricity demand amid heatwaves, with solar power contributing nearly a quarter of the EU's electricity generation last month, outpacing nuclear energy.