In SolarPower Europe’s annual EU Market Outlook report, the organisation found that the EU’s solar sector has hit its first 2020s deployment slowdown – after four years of impressive growth.
The sector has dropped from 53% growth in 2023 to 4% in 2024, demonstrating a 92% solar deployment slowdown.
The report additionally shows that 65.5 GW of solar was installed in 2024 thus far, which narrowly beats 2023’s 62.8 GW record. Overall, the EU now boasts 338 GW of solar – which is four times as much as 82 GW ten years ago,
European policymakers and system operators can consider this year’s report a yellow card. Slowing solar deployment means slowing the continent’s goals on energy security, competitiveness and climate,” warns Walburga Hemetsberger, CEO at SolarPower Europe.
“Europe needs to be installing around 70 GW annually to hit its 2030 targets – we need to consider corrective action now, before it’s too late.”
In the report’s release announcement, SolarPower Europe notes that the slowdown has occurred in spite of a decline in prices for both solar components and upfront installation costs.
Dries Acke, Deputy CEO at SolarPower Europe notes: “Low-cost solar is the best option for bringing Europe into a new era of competitiveness. We need to complete our detachment from Russian gas and avoid LNG dependence.”
Europe’s industries need clean and affordable electricity to stay competitive, and Europe’s renewable sector needs more flexible electricity demand to reinforce its business case.
We call on the new European Commission to leverage this mutually reinforcing opportunity and build the Clean Industrial Deal around renewables, flexibility and electrification.”
Quick facts:
EU annual investments in solar dropped for the first time in four years in 2024.
SolarPower Europe’s report shows a fall in investment from €63 bn in 2023 to €55 bn in 2024.
Ground-mounted utility solar projects saw a 28% decline in cost in 2024.
Europe’s rate of electrification has remained at 23% from 2019 -2024.
- Most of the energy system is still dependent on fossil fuels.
The Electrification Alliance has called for 35% electrification by 2023.
- In turn, SolarPower Europe has called for “system flexibility” to catch up to this target.
Projections
Households are less likely to invest in rooftop solar while energy prices are stable.
- Solar and heat pumps saved households 84% on bills during the energy crisis’ most critical times.
- This could lead to large installations taking a more prominent role in the EU’s total solar from 2025 – 2030.
Total rooftop installed capacity will remain 47% larger than utility scale by 2028.
Despite rooftop’s large market share, prospects for growth are expected to stagnate.
Under the Medium scenario, National Energy and Climate Plans (NECP) and REPowerEU targets are expected to be narrowly met.
- This is despite a lower outlook of 8%.
REPowerEU’s target of 750 GW will not be met in the report’s Low scenario for 2030 – achieving only 650 GW.
- This is the first time the Low scenario has shown this.
The report projects that the solar sector may install only 82 GW per annum by 2028.
- This annual growth is only 3-7% – a fall of 8% from the organisation’s previous forecast six months ago.
