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ISSN 2753-7757 (Online)

EU solar market contracted in 2025

7/1/2026

News

Solar farm in the Irish countryside Photo: Natural Power
Ireland has now reached 2 GW of installed solar capacity

Photo: Natural Power

The boom years of European Union (EU) solar in the 2020s are ‘over’, a new report by trade association SolarPower Europe has claimed.

The amount of installed solar decreased by 0.7% from the 65.6 GW installed in 2024, to 65.1 GW installed in 2025, marking the first year since 2016 where the EU installed less solar than the year before.  

 

The report notes that news of the decline is softened by the mid-decade milestone achieved – an estimated 406 GW total solar was installed across the EU by the end of 2025, meeting the 400 GW goal set out in the 2022 EU Solar Strategy.  

 

However, the slowdown is set to continue in 2026 and 2027, with growth returning in 2028 and 2029 so that the EU finally reattains 2025 solar installation levels in 2030, with around 67 GW in annual installations. In the report’s most-likely scenario, this means that the EU will fall short of its 750 GW solar target for 2030.  

 

Walburga Hemetsberger, CEO of SolarPower Europe, said: ‘The number may seem small, but the symbolism is big. We hit our 2025 solar target, but now for the first time, our 2030 target is falling out of reach.’

 

‘It’s critical that policymakers now implement robust frameworks for electrification, system flexibility and energy storage to ensure solar leads Europe’s energy transition for the rest of this decade,’ she continued.

 

The faltering supply is attributed to several factors. An uncertain post-energy crisis environment has seen rooftop support schemes cut and a perceived softening of energy price pressure on households has drastically set back the home solar market. Home rooftop solar has slowed significantly, having been responsible for 28% of EU installed capacity in 2023, but only 14% in 2025.  

 

The report notes that for the first time, solar farms made up over 50% of installed solar capacity. However, standalone solar faces increasing challenges on profitability, with increasing numbers of negative pricing hours eating away at revenues from solar electricity.  

 

While the picture across segments is changing, the ranking across EU countries stays relatively stable, according to the report. Germany and Spain maintained their leads as the EU’s largest solar markets, driven by utility-scale projects as rooftop incentives slowed. In a slight-shake up, France overtook Italy to install the third-largest solar capacity in 2025, propelled by strong commercial and utility-scale expansion, while Italy’s rooftop sector contracted sharply following the phase-out of support schemes.  

 

Elsewhere, Romania and Bulgaria entered the top 10 solar markets for the first time, with Romania boasting the fastest growth rate among its peers and Bulgaria’s surge tied to national recovery funding deadlines. On the other hand, the Netherlands’ ranking plunged to eighth place, mirroring negative developments in rooftop installations.  

 

Ireland reaches 2 GW of installed solar capacity

Meanwhile, Ireland has achieved its own milestone, having officially reached 2 GW of installed solar capacity.  

 

This has been made possible thanks to the recent energisation of three solar farms developed by Dublin-based BNRG: Finnis (16 MW) in Cork, and Dunmurry (22 MW) and Kerdiffstown (6 MW), both in Kildare.  

 

Renewable energy consultancy Natural Power acted as engineer across the three projects, supporting BNRG through design, construction and commissioning.

   

Ireland’s Climate Action Plan targets 80% renewable electricity by 2030, with recent market reforms and the Renewable Energy Support Scheme (RESS) auction framework accelerating deployment across wind, solar and storage.