Welcome to SolarPower Europe‘s EU Market Outlook 2025: Mid-Year Analysis.
Article by SolarPower Europe:
This publication marks a new addition to SolarPower Europe’s solar and battery storage market outlook series. Starting this year, we will release this mid-year edition annually to provide a review of solar developments during the first half of the year, along with an updated forecast for the second half. As solar has become a major pillar of the EU energy transition – and will continue to grow its share, it’s important to continuously feel the pulse of the EU solar sector. Unlike our December edition, this report does not include policy recommendations or long-term projections – it is a brief market snapshot and outlook for the rest of the year. Our comprehensive outlook with five-year forecasts and policy insights will continue to be published at year-end.
The report highlights a major milestone: in June 2025, solar became the EU’s largest source of electricity for the first time, supplying 22% of the power mix. While the EU remains on track to meet its 2025 solar target of 320 GWAC (400 GWDC), this achievement contrasts with mounting concerns about reaching the 2030 goal of 600 GWAC (750 GWDC), as the market shows signs of slowing down.
Following years of rapid expansion, the solar market stagnated in 2024. As it looks now, the market will most likely contract slightly in 2025, primarily due to a sharp decline in residential rooftop installations – driven by lower electricity prices and weakening support schemes. Utility-scale solar continues to perform better, supported by auctions and corporate PPAs, though the latter driver is also faltering amid buyer hesitation in recent months.
The most pertinent solutions to continue Europe’s solar success story and deliver the continent’s 2030 renewables targets are well-established – rapidly scale-up battery storage and overall system flexibility. SolarPower Europe, therefore, has just launched its Battery Storage Europe Platform to bring together industry leaders in this field and advance the business case and regulatory frameworks for battery storage across the EU.
Read the report here.
