Photovoltaics (PV) is gaining momentum as the EU sets ambitious new targets and policies.
Solar capacity growth across Europe is gaining significant momentum, with projections indicating that the region could nearly double its solar output in the next year. This potential growth is presented within the broader framework of the European Commission’s Competitiveness Compass, which emphasizes the need for greater reliance on renewable energy sources.
According to findings presented by Liam Coman, solar market analyst at S&P Global Commodity Insights, the solar market is expected to grow from about 50 gigawatts to around 110 gigawatts by the end of 2025. During his presentation at Tongwei’s event held at its new European office in Frankfurt, Coman noted: “What we are seeing is a broadening of where solar is being installed.”
The report from trade association SolarPower Europe reveals astonishing growth, with Europe adding a record 56 gigawatts of solar PV capacity last year alone. This rapid expansion reflects the growing importance of solar as part of the EU’s strategy to combat its structural dependence on fossil fuels, as highlighted by Walburga Hemetsberger, CEO of SolarPower Europe. She said: “The European Commission’s commitment to competitiveness begins in earnest with this new publication.”
Looking ahead, SolarPower Europe’s forecasts indicate that the market will continue to thrive, albeit somewhat moderately, with installations projected 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 way.
Further strengthening solar’s ??outlook, new markets are beginning to emerge. For the first time, countries such as Romania, Lithuania and Ireland have recorded more than 1 gigawatt of solar capacity in just one year, signalling the rapid expansion of the industry beyond traditional strongholds. This growth not only has an impact for consumers, who can save considerably on energy bills, but also signals potential increases in innovation and investment in the global market.
Significantly, wind and solar power have begun to collectively overtake fossil fuels, producing approximately 30% of the EU’s energy needs, according to a report by The Guardian. This shift demonstrates the growing viability and acceptance 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 long-awaited Clean Industrial Deal, which is expected to be published later this month. Arthur Daemers, Senior Policy Advisor at SolarPower Europe, shaped the speech around the importance of policy, saying: “The announced Electrification Action Plan and the European Grid Package should accelerate all those solutions.” The plans will focus on removing barriers and integrating solar energy efficiently, to fully capitalise on its potential.
Another leading industry voice, Anett Ludwig, Director of Supply Chains at SolarPower Europe, reiterated the call for investment, stressing the need for strong manufacturing bases and resilient value chains for solar PV production in Europe. “It is encouraging to see that the European Commission is willing to use various policy instruments to promote clean technology manufacturing,” she commented, hinting at future support and funding aimed at ensuring Europe remains competitive.
There is also an emphasis on connecting new solar markets with innovative solutions, in particular through power purchase agreements (PPPs) and better market integration, which would favour small and large companies alike. Despite some challenges, industry leaders are optimistic about the shift to renewable energy and its ability to wean European nations off a precarious reliance on fossil fuels.
According to S&P forecasts, global solar installations are also projected to reach 580 gigawatts by 2025, supported primarily by rapid advances and growth in China, which has effectively doubled its capacity since 2023. The convergence of technological advancements and aggressive policy frameworks positions Europe not only as a regional leader, but also as a pivotal player on the global energy stage.
