Today : Mar 15, 2025
Climate & Environment
01 February 2025

Europe's Solar Capacity Set To Nearly Double By 2025

Momentum builds for renewable energy as EU sets ambitious new targets and policies.

The growth of solar capacity across Europe is gaining significant momentum, with projections indicating the region could nearly double its solar output within the next year. This potential growth is laid out within the broader framework of the European Commission's Competitiveness Compass, which emphasizes the need for increased reliance on renewable energy sources.

According to the findings presented by Liam Coman, a solar market analyst at S&P Global Commodity Insights, the solar market is expected to jump from about 50 gigawatts to around 110 gigawatts by the end of 2025. During his presentation at Tongwei's event held at their new European office in Frankfurt, Coman noted, “What we're seeing is a broadening out of where solar is being installed.”

The report from the trade association SolarPower Europe reveals astonishing growth, with Europe adding a record 56 gigawatts of solar photovoltaic capacity just last year. This rapid expansion reflects the increasing importance of solar power as part of the EU's strategy to combat its structural dependency on fossil fuels, as highlighted by Walburga Hemetsberger, CEO of SolarPower Europe. She stated, “The European Commission’s commitment to competitiveness begins in earnest with this new publication.”

Looking forward, SolarPower Europe's forecasts indicate the market will continue thriving, albeit with some moderation as anticipated installations are poised to reach 62 gigawatts this year. Despite this slight slowdown, the underlying trend remains strong with key markets such as Germany, Spain, Italy, and Eastern Europe leading the charge.

Further bolstering the prospects for solar energy, new markets are beginning to emerge. For the first time, countries like Romania, Lithuania, and Ireland recorded more than 1 gigawatt of solar capacity within just one year, indicating the swift expansion of the industry beyond traditional strongholds. This growth is not only impactful for consumers, who stand to save considerably on energy bills, but also signals potential increases for global market innovation and investment.

Significantly, wind and solar energy have collectively started to surpass fossil fuels, producing approximately 30% of the EU's energy needs, according to reporting by The Guardian. This shift demonstrates the increasing viability and embrace of renewable energy technologies, changing the energy dialogue across the continent.

To support the expansion, the European Commission is set to outline new initiatives, including the much-anticipated Clean Industrial Deal expected to be released later this month. Arthur Daemers, Senior Policy Advisor at SolarPower Europe, shaped the discourse around the importance of policy, saying, “The announced Electrification Action Plan and European Grids Package must accelerate all those solutions.” The plans will focus on removing barriers and integrating solar power efficiently, to fully capitalize on its potential.

Another major voice from the industry, Anett Ludwig, Head of Supply Chains at SolarPower Europe, reiterated the call for investment, emphasizing the necessity for strong manufacturing bases and resilient value chains for solar PV production within Europe. “It is encouraging to see the European Commission ready to use various policy instruments to promote clean tech manufacturing,” she remarked, hinting at future support and funding aimed at ensuring Europe remains competitive.

There's also the emphasis on connecting new solar markets with innovative solutions, particularly through Power Purchase Agreements (PPPs) and improved market integration, which would favor small and large enterprises alike. Despite some challenges, industry leaders are optimistic about the shift toward renewable energy and its ability to decouple European nations from precarious fossil fuel dependency.

According to S&P's forecasts, global solar installations are also projected to reach up to 580 gigawatts by 2025, primarily backed by rapid advancements and growth from China, which has effectively doubled its capacity since 2023. The convergence of technological advancement and aggressive policy frameworks positions Europe not only as a regional leader but also as a pivotal player on the global energy stage.

Overall, these initiatives signal significant changes to Europe's energy policy and economics, fostering opportunities for both consumers and businesses. The universal push toward decarbonization and building upon the successes of solar technology is entrenched within the backbone of European growth strategy. With decision-makers poised to lift regulatory hurdles, the horizon looks hopeful for renewable energy, making it clear: Solar is not just part of the answer; it's becoming the key to Europe’s future energy portfolio.