According to a mid-year report by SolarPower Europe, the EU solar market is poised to experience its first growth stagnation in a decade in 2025, characterized by a residential sector downturn and widening divergence in utility-scale project development.
The latest SolarPower Europe mid-year report projects solar PV additions in the EU27 to reach 64.2GW in 2025, marking a 1.4% year-on-year decline from 2024’s 65.1GW. This represents the first annual contraction in the EU solar market since 2010.
While cumulative installed capacity is expected to surpass 402GW this year, the structural challenges behind this slowdown have drawn industry-wide attention.
Key observations:
- Residential segment shows signs of cooling
- Utility-scale market exhibits uneven regional performance
- Policy and grid integration hurdles emerge as growth constraints
The report underscores the need for accelerated grid modernization and streamlined permitting to sustain the energy transition momentum.
