EU Solar Power Installation Slows in 2025 Amid Industry Concerns over 2030 Targets
The European Union installed 65.1 gigawatts of new solar capacity in 2025, slightly below the previous year's figures by 0.7 percent, marking the first slowdown since 2016. Despite this marginal decrease, the European Union managed to surpass its mid-decade goal of 400 gigawatts, reaching an estimated 406 GW by year-end. However, industry experts fear this momentum may not be sustained to meet the 2030 target of 750 GW.
The slowdown has prompted concerns that the ambitious energy transition objectives risk falling short. SolarPower Europe, the industry association, highlights that if current trends persist, the region will not fully realize its 2030 goals, with projections indicating only 718 GW installed — 32 GW below expectations. The report emphasizes that annual installations are expected to decline in 2026 and 2027, only recovering gradually in 2028 and 2029, which may not be sufficient to catch up by 2030.
At the same time, solar energy contributed approximately 13.4 percent to the European electricity mix in 2025, and during June it was the leading electricity source across the European Union. The energy mix shift reflects growing reliance on solar, but also underscores challenges faced by the industry.
The decline in installations is partly explained by reduced residential rooftop solar uptake, which dropped from 28 percent of new installs in 2023 to 14 percent in 2025. Policy adjustments and lower electricity prices after the energy crisis have diminished economic incentives for consumers to invest in rooftop PV systems. Conversely, utility-scale solar captures over half the total capacity, yet faces declining profitability due to increased periods of negative electricity prices, impacting projects without fixed power purchase agreements.
Germany and Spain continue to lead the European solar market, though growth rates have slowed. Germany added 17.6 GW (+1 percent) to reach 119 GW total capacity, while Spain installed 9.2 GW (+5 percent), totaling 55.4 GW. France emerged as the third-largest market, driven by industrial and commercial demand, installing 6.7 GW (+17 percent). Italy, however, experienced a contraction after major incentive program withdrawals, with 5.2 GW added, reaching 41.1 GW.
Several strategic obstacles threaten future growth, including the need to enhance energy security through renewables, develop comprehensive storage and flexibility strategies, and streamline permitting procedures. The European Commission has recently proposed new legislative initiatives aimed at simplifying environmental procedures and accelerating grid expansion, reflecting a policy push to overcome these hurdles. Addressing supply chain resilience and sustainability also remains crucial for maintaining industry momentum.
In sum, while the European Union has made significant strides in solar deployment, the recent slowdown and emerging challenges highlight the necessity for targeted policies and investment to ensure the regions renewable ambitions are realized by 2030.