Europe Solar Power Market Outlook, 2030

Europe has been at the forefront of the solar power market globally, showing considerable growth over the recent decades. The solar power market in Europe has transformed due to a blend of policy support, technological advancements, and heightened environmental awareness. Europe’s dedication to lowering carbon emissions and shifting to renewable energy sources has facilitated the widespread implementation of solar energy. The region’s solar market has undergone substantial growth, especially in nations such as Germany, Spain, Italy, and France. Historically, Europe’s fascination with solar power began in the early 2000s.

The rollout of favorable policies, like feed-in tariffs (FiTs) and subsidies, especially in Germany during the mid-2000s, laid the groundwork for the swift growth of solar power throughout the continent. These incentives provided guaranteed payments to renewable energy producers, including solar, thereby making it financially appealing for individuals, companies, and utilities to pursue solar installations. By the 2010s, solar power had significantly progressed in numerous European nations, propelled by declining installation costs and the emergence of more efficient photovoltaic (PV) technology. Europe’s ambitious renewable energy targets, as part of its climate and energy policies, such as the European Green Deal and 2030 climate targets, have fueled the adoption of solar power. Germany, for instance, became one of the largest producers of solar energy worldwide. The European solar power market is increasingly marked by a transition towards large-scale solar farms and solar energy storage systems, along with a growing investment in off-grid applications and community solar projects. With ongoing policy support, technological advancements, and increased recognition of the necessity for clean energy, Europe’s solar power market is set for further growth, aiming to achieve EU’s renewable energy goals and carbon neutrality by 2050.

According to the research report, 'Europe solar power Market Outlook, 2030,', the Europe solar power market is anticipated to add to more than USD 47.08 Billion by 2025-30. The solar power market in Europe presents considerable opportunities for expansion, fueled by the region's strong dedication to sustainability and renewable energy objectives. Government incentives and subsidies continue to be a major factor, with nations such as Germany, Spain, and France offering appealing feed-in tariffs, grants, and tax refunds to promote solar installations. Furthermore, the European Green Deal, which seeks carbon neutrality by 2050, provides significant long-term prospects for the growth of solar energy.

Energy storage solutions, including batteries and smart grids, represent a burgeoning market, allowing solar energy to be conserved and utilized effectively even during periods without sunlight. In spite of robust growth, the European solar market encounters various challenges. The intermittency of solar power remains a major concern; since solar energy production relies on sunlight, it necessitates backup solutions to uphold grid stability. While energy storage technologies are advancing, they still entail high initial costs, complicating integration. Moreover, the complexity of regulations across different European nations can pose obstacles, with discrepancies in incentive schemes, grid access, and permits making cross-border initiatives more difficult. Additional challenges arise concerning land acquisition for extensive solar installations in populated or environmentally protected regions. Significant growth factors for the solar power market in Europe include declining solar panel costs, which have made solar setups more accessible for residential, commercial, and industrial users. The drive for decarbonization alongside the execution of the EU’s renewable energy targets for 2030 are also vital motivators. Technological advancements, including enhanced panel efficiency and the incorporation of smart grid systems, are facilitating greater solar adoption. The focus of promotion and marketing in Europe centers around environmental sustainability and cost savings.

Market Drivers

Government Policies and Incentives: Government initiatives rank among the key catalysts for solar power expansion in Europe. The European Union (EU) has pledged to pursue ambitious renewable energy targets through the European Green Deal and 2030 climate objectives, with a goal of achieving carbon neutrality by 2050. To advance these objectives, various European nations provide substantial incentives, including feed-in tariffs (FiTs), subsidies, and tax rebates, which enhance the financial allure of solar installations. For example, Germany’s Renewable Energy Sources Act (EEG) presents incentives for renewable energy production, ensuring lasting financial security for solar endeavors. These initiatives considerably reduce the initial costs of solar energy, rendering it a more feasible choice for both homeowners and enterprises, thus propelling solar uptake across the region.

Declining Costs of Solar Technology: The expenses associated with solar panels and other related technologies have dramatically decreased over the last ten years. This decline results from progress in photovoltaic (PV) technology, enhanced manufacturing methods, and economies of scale. Solar panel prices have experienced a decrease of over 70% since 2010, making solar installations more economically viable for consumers. This pattern is anticipated to persist as additional technological advancements surface, facilitating broader adoption of solar energy. The decreasing costs of solar energy storage systems have also played a role in the market's expansion, enabling consumers to retain surplus energy for future use, which enhances energy reliability and autonomy.

Market Challenges

Intermittency and Grid Integration: A significant obstacle for solar energy in Europe is its intermittent nature. The generation of solar power is contingent on sunlight, which fluctuates with the time of day, weather patterns, and seasonal shifts. This inconsistency can impede the balancing of supply and demand, particularly in areas with extensive solar utilization. To overcome this issue, effective energy storage systems and grid integration technologies are crucial. Nevertheless, although energy storage solutions such as batteries are advancing, they continue to be costly and have limitations concerning capacity. Functional smart grids that can align solar generation with demand are essential but necessitate considerable investment.

Land Availability and Urbanization: As the appetite for solar installations increases, especially for large-scale solar farms, the accessibility of suitable land presents a considerable challenge. Europe has a high population density, notably in countries such as Germany, France, and the UK, and land for substantial solar projects can be limited and costly. Many of the most appropriate locations for large solar installations are situated in rural or agricultural areas, where land use conflicts can arise. Furthermore, environmental concerns related to the allocation of land for large solar initiatives, such as effects on biodiversity or agricultural land, add further complexity to development.

Market Trends

Growth of Solar Storage and Hybrid Systems: As the price of solar batteries keeps falling, there is an increasing trend toward combining solar energy with energy storage systems. Hybrid solar systems, which merge solar energy production with storage functions, are gaining popularity among both residential and commercial users. These systems enable the accumulation of surplus solar energy during sunny weather, which can subsequently be utilized at night or on overcast days. This enhances the reliability and efficiency of solar energy, boosting its attractiveness to consumers.

Growth of Community and Shared Solar Initiatives: There is an increasing trend of community solar initiatives, where several households or businesses share the advantages of a single solar installation. This approach allows individuals without appropriate roofs for solar panels to still take advantage of solar energy. It is particularly favored in urban locations where there is limited space for personal rooftop installations. Shared solar farms are being set up throughout Europe, supported by government initiatives and private funding, making solar energy more attainable for a wider array of consumers. This movement is contributing to the democratization of solar energy, facilitating collective efforts for the adoption of renewable energy.

Photovoltaic (PV) technology is at the forefront and expanding swiftly in the European solar power market due to its economic efficiency, effectiveness, and the region’s strong dedication to renewable energy goals.

Photovoltaic (PV) technology has emerged as the leading and quickest-growing sector in the European solar power market because of various crucial elements that render it both financially feasible and technologically sophisticated. Throughout the past ten years, the price of PV panels has notably diminished, propelled by global improvements in manufacturing processes and economies of scale. This decrease in cost has rendered PV solar installations more reachable for residential, commercial, and industrial clients, aiding its supremacy in the European market. One of the main factors driving PV’s swift expansion in Europe is the region's dedication to renewable energy.

The European Union (EU) has established ambitious renewable energy objectives under its Green Deal and 2030 climate and energy framework, with goals to lower carbon emissions and attain carbon neutrality by 2050. Solar energy, particularly PV technology, is essential in accomplishing these targets, providing a clean, renewable energy source that can be utilized at various scales, from rooftop setups to extensive utility-scale solar installations. The scalability and adaptability of PV technology also play a significant role in its preeminence. It can be deployed in diverse environments, from urban rooftops to expansive open areas, making it an apt solution for Europe’s varied energy requirements. Additionally, technological advancements have resulted in enhanced panel efficiency, enabling greater energy production from the same quantity of sunlight. This aspect makes PV systems even more appealing, notably in nations rich in sunlight, such as Spain and Italy. Government subsidies, feed-in tariffs (FiTs), and green energy incentives in nations like Germany and France further promote the use of PV technology. As solar power grows increasingly economical and efficient, the European market for photovoltaic technology keeps developing, establishing PV as the quickest-growing technology in the region’s shift towards renewable energy.

Batteries represent the most rapidly expanding segment in the European solar power market because they can store surplus solar energy, improving energy reliability and independence, and facilitating the integration of renewable energy into the grid.

The swift expansion of batteries within the European solar power sector is fueled by the growing need for energy storage solutions that can mitigate the intermittent nature of solar energy production. Solar energy, though plentiful, is inconsistent - it is generated during daylight hours when sunlight is available but cannot be utilized at night or during overcast conditions. This results in a need for energy storage systems that enable individuals and businesses to save surplus solar power produced during optimal sunlight periods for future use. With the decreasing prices of solar batteries due to technological advancements and economies of scale, their uptake is becoming increasingly practical and widespread.

Lithium-ion batteries, which are the predominant type of storage for solar systems, have experienced notable price declines over the past few years. This makes solar-plus-storage solutions appealing to homeowners and businesses aiming to optimize the benefits of their solar investments. Batteries provide enhanced energy independence, allowing consumers to depend less on the grid, particularly during high electricity demand periods or when prices peak. Alongside the price drops, government incentives and policies that advocate for energy storage solutions are propelling battery growth in Europe. Numerous European nations are providing subsidies, grants, or tax deductions for energy storage projects, making these systems more financially attainable. As Europe strives for carbon neutrality and ambitious 2030 renewable energy goals, the melding of solar power with energy storage is regarded as vital for the shift toward a cleaner, more sustainable energy future. Moreover, batteries play a vital role in the integration of renewable energy into the grid. By capturing excess solar energy and dispensing it as required, batteries assist in aligning supply with demand, minimizing grid instability, and bolstering Europe’s green energy transition. Consequently, batteries stand as a fundamental catalyst for the expansion of solar power in Europe, establishing them as the fastest-growing segment in the solar energy sector.

Solar systems mounted on roofs are experiencing the fastest expansion in the European solar power sector due to their affordability, capacity to optimize space utilization in urban settings, and increasing consumer interest in energy autonomy.

Roof-mounted solar systems have become the quickest growing section in the European solar power sector, propelled by various significant factors. A principal factor contributing to this expansion is affordability. Installing solar panels on rooftops is typically more budget-friendly than ground-mounted alternatives, especially for residential and commercial users who already possess usable space. Furthermore, roof-mounted systems enjoy reduced installation expenses because they need less land acquisition and preparation, which can constitute a major cost for extensive solar farms. Another influential factor is space optimization.

In numerous European nations, particularly in heavily inhabited urban locales, suitable land for expansive solar farms is scarce. Roof-mounted solar systems tackle this issue by leveraging existing infrastructure. They enable homeowners, enterprises, and even multi-family dwellings to produce solar energy without using extra land. This renders them an ideal resolution for the increasing demand for renewable energy in urban areas where land is limited. As electricity costs increase and consumers grow more aware of their ecological footprint, interest in energy autonomy has significantly risen. Roof-mounted solar systems offer an excellent method for residential and commercial entities to produce their own electricity, lessening dependency on the grid and decreasing energy expenses. In addition, with the reduction in solar panel prices and innovations in solar technology, roof-mounted systems have become more reachable and efficient, boosting their attractiveness. Additionally, government incentives and regulations in countries such as Germany, Spain, and the UK are rendering roof-mounted solar systems even more appealing. Financial aid, tax incentives, and feed-in tariffs have promoted widespread adoption, aiding the rapid growth of this market segment. Therefore, the synthesis of cost-effectiveness, spatial efficiency, and policy backing has driven roof-mounted solar systems to be the fastest-growing section in Europe’s solar power sector.

The expansion of residential solar power in the European market is significant and accelerating rapidly due to the rising consumer desire for energy independence, savings on costs, and strong government support for renewable energy initiatives.

Residential solar power represents the most rapidly expanding segment within Europe’s solar energy sector, influenced by multiple factors that render it especially appealing to homeowners. A key reason for this swift expansion is the escalating demand for energy independence. As electricity rates persist in their upward trend across Europe, numerous homeowners are opting for solar energy as a method to diminish their dependence on the grid and evade fluctuating energy expenses. The installation of residential solar panels enables consumers to produce their own electricity, greatly decreasing their monthly utility charges.

Furthermore, improvements in solar technology have enhanced the efficiency of solar panels, enabling residential systems to produce more power even in areas with less sunlight, further increasing their appeal. Another significant factor is the rising emphasis on sustainability and environmental responsibility. With an upswing in awareness regarding climate change, homeowners are in search of cleaner energy alternatives to lessen their carbon footprint. Solar power presents a sustainable and green energy option, empowering homeowners to play a role in a more sustainable future while also achieving long-term savings. Additionally, formidable government incentives and policies are crucial in the acceptance of residential solar energy. In numerous European nations, support systems such as subsidies, feed-in tariffs, tax credits, and other financial benefits make it more financially viable for homeowners to set up solar panels. For instance, countries including Germany, France, and Spain provide robust programs that lower initial costs, enhancing the accessibility of residential solar energy systems. Ultimately, the decreasing prices of solar panels and enhanced financing opportunities have rendered residential solar power an appealing investment. With reduced installation expenses, government support, and an increasing interest in energy independence, residential solar energy is becoming a more favored option for European consumers, thus establishing it as the fastest-growing segment in the market.

Germany is the quickest advancing nation in Europe’s solar power sector due to its robust policy backing, significant investments in renewable energy, and dedication to reaching ambitious climate objectives.

Germany has consistently held the position of a leader in Europe’s solar power sector, and it persists as the fastest-evolving country in the region owing to a blend of government backing, technological progress, and public interest in renewable energy. As part of the Energiewende, Germany's ambitious energy transition strategy, the country has pledged to decrease its carbon emissions and boost its proportion of renewable energy in the energy mix. This pledge has propelled the swift development of solar energy installations throughout the nation. A major element driving Germany’s solar expansion is its policy structure.

The country has historically been at the forefront of establishing feed-in tariffs (FiTs), subsidies, and tax incentives that promote both residential and commercial solar energy investments. These regulations, combined with a supportive regulatory framework, have considerably lessened the financial hurdles to solar adoption, positioning it as one of the most appealing solar markets in Europe. The German government's aim of 65% renewable energy by 2030, and carbon neutrality by 2045, additionally reinforces confidence in the nation's long-term solar market. Technological progress in solar power and storage options has also been instrumental in fostering growth in Germany. The country hosts many of the globe’s foremost solar manufacturers and research institutions, nurturing innovation and driving down the prices of solar panels and energy storage systems. This development has rendered solar installations more accessible and efficient for both homeowners and businesses. Germany’s dedication to solar energy is likewise fueled by the public’s increasing recognition of climate change and the aspiration for energy self-sufficiency. With the government's strong incentives, ongoing breakthroughs in solar technology, and rising public backing, Germany continues to be the fastest-growing solar power market in Europe, serving as a model for other countries in the region.

Major Companies present in the market

Canadian Solar Inc., Trina Solar Co., Limited, Jinko Solar Holding Co., Limited, Longi Green Energy Technology Co., Limited, JA Solar Technology Co., Limited, Sunpower Corporation, First Solar Inc., Hanwha Corporation, Abengoa, S.A., Engie SA.

Considered in this report

• Geography: Europe
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report

• Europe solar power market with its value and forecast along with its segments
• Region-wise solar power market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Types of Technology in the report

• Solar Photovoltaic
• Concentrated Solar Power (CSP)
• Others

By Product

• Solar Panels
• Charge Controllers
• Batteries
• Inverters
• Others

By Installation

• Ground mounted
• Roof mounted
• Others

By Application in the report

• Residential
• Commercial/ Industrial
• Others

The approach of the report

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analysing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to solar power industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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