The growth of new solar power installations in Europe slowed to just 4% this year, marking a significant drop after several years of double-digit increases. This has raised concerns about the region’s energy transition. Additionally, investments in European solar projects have decreased for the first time this decade.
These developments pose a challenge for the European Union, where renewable energy is a cornerstone of efforts to combat climate change and reduce reliance on Russian fossil fuels. In 2021 and 2022, the EU’s installed solar capacity grew by over 40% year-on-year, with a more than 50% increase in 2023, according to SolarPower Europe. This year, however, the EU installed 65.5 GW of solar capacity, a record figure but only a 4% increase over 2023.
To meet its green energy targets by 2030, the EU needs to install 70 GW of new solar capacity each year. SolarPower Europe has revised its growth projections downward in light of this year’s slowdown. Their central forecast still suggests that Europe will reach 816 GW of installed solar capacity by 2030, up from the current 338 GW, which should be sufficient to meet the EU’s goals.
However, the organization’s low scenario now indicates that Europe might miss its renewable energy expansion targets. The slowdown is attributed to the fact that many European electricity networks are not yet equipped to handle a higher share of renewable energy. Solar projects often face delays of several years to connect to the grid, or may encounter production restrictions to prevent network overload, leading to wasted energy.
Data also shows a nearly 5 GW decline in residential rooftop solar installations year-on-year, with 12.8 GW installed in 2024. SolarPower Europe attributes this drop to falling energy prices, which reduced the incentive for consumers to invest in solar panels to lower their energy bills, following the peak energy prices during the European energy crisis of 2022.
