While EU solar market capacity additions improved a little in 2024, solar investments declined by 13%

While growth remains positive, this deceleration raises concerns, particularly as annual additions need to increase continuously to meet the EU’s REPowerEU solar PV targets. The situation is further complicated by different challenges, including worsening incentive framework conditions to rooftop solar today and the lack of flexibility in the EU electricity system that increasingly hinders the growth of utilityscale projects, especially in the medium and long term. This drastic slowdown is a stark reminder that renewable energy development cannot be taken for granted, even for the pricecompetitive solar PV sector.

Until recently, capital investments in solar PV in the EU were on a steady upward trajectory, rising from around 19 billion EUR in 2020 to around 60 billion EUR in 2023 (see Fig. 2). However, the trend shifted significantly in 2024. Module prices in European wholesale markets fell to record lows, dropping by an average of 35% between January and November 2024, driven by declining supply chain costs and overcapacities. As a result, average CAPEX for rooftop PV systems decreased by 2%, while ground-mounted PV systems saw a sharper 28% decline. These record-low PV prices, coupled with the slowdown in market growth during 2024, led to a 13% reduction in capital investments, which fell to 56 billion EUR compared to 2023.

EU Market Outlook for Solar Power 2024-2028

17 December 2024