Industry spooked as solar power growth slows in Europe

An eight-year run of ever-increasing solar power deployment looks set to stall this year, potentially putting the EU’s 2030 climate target at risk, the main European industry body warned on Thursday.

SolarPower Europe has forecast 64.2 gigawatts of solar capacity to be added this year – down 1.4% from the 65.1gw installed in 2024 – suggesting the rate of new installations is decelerating.

This year’s figure is still expected to exceed the levels reached in 2023, which was marked by an exceptional boost in solar panel deployment in response to Europe’s energy price crisis.

But SolarPower Europe’s deputy chief, Dries Acke, said that even if the 2025 growth slowdown may seem small, the “symbolism is big”.

“Market decline, right when solar is meant to be accelerating, deserves EU leaders’ attention,” he said, stressing that solar photovoltaic provides low-cost electricity, enhances energy security, and helps fight climate change.

This year’s slowdown is mainly due to a “collapse” in the rooftop solar market in key markets like Italy, the Netherlands, Austria, Belgium, Czechia, and Hungary, the lobby group said, pointing to the end of incentive programmes in some of these markets.

The rate of rooftop solar panel installation is also sharply down compared to 2023 in Poland, Spain, and Germany.

Utility-scale installations are set to keep rising, however, and are expected to account for half of the market for new solar panels this year. According to SolarPower Europe’s estimates, the EU should reach 402 gigawatts of solar power capacity by the end of the year.

(rh, aw)