Europe Solar PV Market

Europe Solar PV Market Size

The Europe solar PV market was valued at USD 118.36 billion in 2024. The European is estimated to reach USD 895.48 billion by 2033 from USD 148.20 billion in 2025, rising at a CAGR of 25.21% from 2025 to 2033.

The Europe Solar Photovoltaic (PV) market has emerged as a cornerstone of the transition toward sustainable energy systems in Europe. The demand for solar PV in Europe is driven by ambitious climate goals and technological advancements. Solar PV refers to the conversion of sunlight into electricity using semiconductor materials, enabling clean and renewable energy generation. As of 2023, Europe accounts for over 25% of global solar PV installations, with cumulative installed capacity exceeding 200 GW, according to the International Renewable Energy Agency (IRENA). The European Commission highlights that solar PV contributed to 12% of the region’s total electricity generation in 2022, a figure expected to rise to 20% by 2030. Germany, Spain, and the Netherlands lead this growth, supported by favorable policies such as feed-in tariffs and tax incentives. A report by Eurostat notes that investments in solar PV infrastructure reached €45 billion in 2022, reflecting strong public and private sector commitment. Despite challenges such as intermittency and grid integration, solar PV remains pivotal in achieving Europe’s target of carbon neutrality by 2050.

MARKET DRIVERS

Growing Adoption Of Renewable Energy

One of the primary drivers of the Europe Solar PV market is the increasing adoption of renewable energy mandates and decarbonization policies across member states. The European Green Deal, introduced by the European Commission, aims to reduce greenhouse gas emissions by at least 55% by 2030, with solar PV playing a central role. According to the UK Department for Business, Energy & Industrial Strategy, renewable energy subsidies have increased by 30% since 2020, directly boosting solar PV installations. France’s Ministry of Ecological Transition reports that solar PV capacity in the country grew by 25% annually between 2021 and 2022, driven by mandatory renewable energy quotas for utilities. Additionally, Germany’s Federal Ministry for Economic Affairs highlights that solar PV projects accounted for 40% of all new energy installations in 2022, underscoring its dominance in the renewable energy mix.

Rapid Decline In Solar PV System Costs

Another significant driver is the rapid decline in solar PV system costs, making it increasingly accessible for both residential and commercial applications. The International Renewable Energy Agency (IRENA) reports that the cost of solar PV modules has decreased by over 80% since 2010, with installation costs dropping to €0.50 per watt in 2023. Italy’s Ministry of Economic Development notes that residential rooftop solar PV systems have seen a 50% increase in adoption due to these cost reductions. Furthermore, the Netherlands Enterprise Agency highlights that businesses adopting solar PV have reduced their energy bills by an average of 35%, driving further demand. These cost dynamics, coupled with government incentives, are accelerating the deployment of solar PV systems across Europe, positioning it as a key solution for energy affordability and sustainability.

MARKET RESTRAINTS

Issue Of Grid Integration And Infrastructure Limitations

One significant restraint hindering the growth of the Europe Solar PV market is the issue of grid integration and infrastructure limitations, which pose challenges for large-scale adoption. The European Network of Transmission System Operators for Electricity (ENTSO-E) highlights that over 30% of planned solar PV projects face delays due to insufficient grid capacity and outdated infrastructure. Germany’s Federal Network Agency reports that grid expansion projects required to accommodate solar PV growth are progressing at only half the necessary rate, creating bottlenecks. Additionally, the UK Office of Gas and Electricity Markets notes that integrating intermittent solar energy into existing grids has increased operational costs by 15-20%, deterring investment. These infrastructural barriers underscore the urgent need for modernization and expansion to support the growing solar PV capacity.

Reliance On Imported Raw Materials And Components

Another major restraint is the reliance on imported raw materials and components, which exposes the market to supply chain vulnerabilities. The European Commission reports that over 80% of solar PV panels used in Europe are manufactured in Asia, primarily in China, leading to dependency concerns. France’s Ministry of Industry highlights that disruptions in the global supply chain during the pandemic caused a 25% increase in panel prices in 2021. Furthermore, Sweden’s National Board of Trade notes that import tariffs and geopolitical tensions have added an additional 10% to procurement costs. These challenges highlight the need for Europe to develop a robust domestic manufacturing base to ensure supply chain resilience and reduce reliance on external suppliers.

MARKET OPPORTUNITIES

Expansion Of Floating Solar PV Installations

One significant opportunity for the Europe Solar PV market lies in the expansion of floating solar PV installations, particularly in regions with limited land availability. The European Commission reports that floating solar PV projects could contribute up to 10 GW of new capacity by 2030, driven by advancements in technology and supportive policies. The Netherlands Water Partnership highlights that floating solar farms can generate 15% more electricity than traditional ground-mounted systems due to cooling effects from water bodies. Additionally, Italy’s Ministry of Infrastructure notes that floating solar projects on reservoirs and lakes have already attracted €2 billion in investments, with pilot projects achieving a 20% reduction in water evaporation. This innovative approach not only addresses land scarcity but also enhances water conservation, making it a promising avenue for sustainable energy development.

Integration Of Solar PV With Energy Storage Systems

Another promising opportunity is the integration of solar PV with energy storage systems, enabling greater reliability and grid stability. The European Association for Storage of Energy (EASE) reports that combining solar PV with battery storage could reduce curtailment losses by 30% while enhancing energy self-sufficiency. Germany’s Federal Ministry for Economic Affairs highlights that households with solar-plus-storage systems have reduced their reliance on the grid by 50%, saving an average of €500 annually on energy bills. Furthermore, the UK Department for Business notes that investments in solar-plus-storage solutions exceeded €10 billion in 2022, reflecting growing consumer and business interest. This synergy between solar PV and storage technologies underscores its potential to transform energy systems, ensuring consistent power supply and supporting Europe’s green transition.

MARKET CHALLENGES

Intermittency Of Solar Energy Generation

One of the major challenges facing the Europe Solar PV market is the intermittency of solar energy generation, which complicates grid management and energy planning. The European Environment Agency reports that solar PV systems generate electricity only during daylight hours, resulting in fluctuations that account for up to 40% of grid instability in some regions. Spain’s Ministry of Energy highlights that the lack of adequate backup systems has led to a 25% increase in energy shortages during peak demand periods. Furthermore, Denmark’s Energy Agency notes that addressing intermittency requires significant investments in complementary technologies such as pumped hydro storage, which can cost up to €1 million per MW of capacity. These challenges emphasize the need for innovative solutions to balance supply and demand while maintaining grid reliability.

Environmental Impact Of Solar PV Waste

Another significant challenge is the environmental impact of solar PV waste, which poses long-term sustainability concerns. The European Environmental Bureau estimates that Europe will generate over 7,000 tons of solar panel waste annually by 2025, with recycling rates currently below 10%. France’s Ministry of Ecological Transition reports that improper disposal of solar panels could release hazardous materials, including lead and cadmium, into the environment. Additionally, Italy’s National Institute for Environmental Protection highlights that establishing a comprehensive recycling infrastructure could require investments of up to €500 million. Addressing these issues is critical to ensuring that the solar PV industry remains environmentally sustainable and aligns with Europe’s broader circular economy goals.

REPORT COVERAGE

REGIONAL ANALYSIS

Germany accounted for 35.3% of the European market share in 2024 and emerged as the leading performer in the European market. The growth of the German market is driven by its robust policy framework, including feed-in tariffs and tax incentives, which have spurred widespread adoption. Eurostat highlights that Germany installed over 10 GW of solar PV capacity in 2022 alone, accounting for 40% of Europe’s total installations. The country’s emphasis on decentralized energy systems has also encouraged residential and commercial solar PV adoption, making it a model for other nations.

Spain is the fastest-growing region in the European market and is projected to grow at a CAGR of 28.4% over the forecast period. This rapid expansion is fueled by abundant sunlight, supportive policies, and declining technology costs. The Spanish government’s Renewable Energy Plan aims to achieve 74% renewable electricity by 2030, with solar PV expected to contribute 40 GW. Italy’s Ministry of Infrastructure notes that Spain’s utility-scale solar projects have attracted €15 billion in investments, reducing energy costs by 20%. This growth underscores Spain’s potential to become a global solar PV leader.

The UK, France, and Italy are expected to witness steady growth. The UK targeting 70 GW of solar capacity by 2035, as per the UK Department for Business. France’s focus on agrivoltaics could add 5 GW by 2030, while Italy’s rooftop solar initiatives aim for 50% household penetration. Russia, Sweden, and Turkey are emerging markets, with Turkey’s solar capacity projected to reach 20 GW by 2030.

KEY MARKET PLAYERS

The major players in the Europe solar PV market include Canadian Solar Inc., BrightSource Energy, Inc., First Solar, SunPower Corporation, Trina Solar, Yingli Solar, Wuxi Suntech Power Co. Ltd., Jinko Solar, Waaree Group, AccionaEnergia S.A., and Nextera Energy Sources LLC.

MARKET SEGMENTATION

This research report on the Europe solar PV market is segmented and sub-segmented into the following categories.

By Technology

• Monocrystalline Silicon
• Thin Film
• Multicrystalline Silicon
• Others

By Grid Type

• On-grid
• Off-grid

By Installation

• Ground Mounted
• Rooftop
• Others

By Application

• Residential
• Non-Residential
• Utilities

By Country

• UK
• France
• Spain
• Germany
• Italy
• Russia
• Sweden
• Denmark
• Switzerland
• Netherlands
• Turkey
• Czech Republic
• Rest of Europe