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 incorporates the production, distribution, and utilization of solar energy systems that convert sunlight directly into electricity across European countries. This market has evolved significantly over the past two decades, transitioning from a niche renewable source to a central pillar in the continent’s energy transition strategy. Also, the integration of PV technology is supported by stringent climate targets, decreasing installation costs, and growing public awareness regarding sustainable energy solutions. Germany remains the dominant player, followed by Spain, the Netherlands, and Poland, each experiencing robust growth due to favorable policy frameworks and investment incentives.

As of 2023, the cumulative installed solar PV capacity in Europe exceeded 200 gigawatts (GW), reflecting an annual increase of more than 15%, as reported by SolarPower Europe. The market includes utility-scale projects, commercial rooftop installations, and residential solar systems, supported by innovations such as bifacial modules and advanced inverters. A main development has been the increasing decentralization of energy generation, enabling households and businesses to become prosumers—both producers and consumers of electricity. In addition, grid modernization efforts and digital monitoring tools have enhanced system efficiency and reliability.

MARKET DRIVERS

Regulatory Support and Policy Frameworks

One of the most influential drivers of the Europe Solar PV market is the strong regulatory support and comprehensive policy frameworks implemented by national governments and the European Union. The European Green Deal, launched in 2019, sets a legally binding target of climate neutrality by 2050, compelling member states to accelerate their renewable energy deployment. Under the Renewable Energy Directive (RED III), the EU aims to source at least 42.5% of its final energy consumption from renewables by 2030, with solar PV expected to play a pivotal role. Countries like Spain and Poland have introduced competitive auctions and feed-in premium schemes to attract private investments, resulting in rapid capacity additions. Germany’s Renewable Energy Sources Act (EEG) was amended in 2023 to fast-track solar project approvals, aiming for 215 GW of installed PV capacity by 2030. These regulatory interventions have not only reduced bureaucratic delays but also improved investor confidence.

Declining Technology Costs and Improved Efficiency

A significant driver fueling the expansion of the Europe Solar PV market is the sustained decline in technology costs coupled with advancements in solar panel efficiency. Over the past decade, the cost of photovoltaic modules has dropped dramatically, making solar energy increasingly accessible to both large-scale developers and individual consumers. This reduction has been attributed to economies of scale, manufacturing innovations, and increased competition among suppliers. Technological progress has also played a crucial role in enhancing performance. Modern monocrystalline PERC (Passivated Emitter and Rear Contact) modules now achieve efficiencies exceeding 22%, compared to around 15% for conventional polycrystalline panels a decade ago. Bifacial modules, which capture sunlight on both sides, are gaining traction across utility-scale projects in countries like the Netherlands and Sweden, boosting energy yield. These cost reductions and efficiency improvements have translated into higher return on investment (ROI) for developers and faster payback periods for end-users. Consequently, demand for solar installations has surged, particularly in residential and commercial segments where self-consumption models are becoming increasingly viable.

MARKET RESTRAINTS

Supply Chain Disruptions and Raw Material Dependency

Despite its rapid growth, the Europe Solar PV market faces significant challenges stemming from supply chain vulnerabilities and heavy reliance on imported raw materials and components. A majority of critical PV inputs—including polysilicon, wafers, cells, and modules—are sourced from China, which dominates global production. This overreliance became starkly evident during the pandemic and subsequent global supply chain disruptions, which led to extended lead times and volatile pricing. In 2022, freight costs surged significantly compared to pre-pandemic levels, while polysilicon prices reached record highs, pushing up overall system costs. Although the situation stabilized somewhat in 2023, uncertainties persist, particularly concerning trade restrictions and customs inspections targeting Chinese imports. Efforts to localize manufacturing, such as the European Solar Manufacturing Council's initiative to build gigawatt-scale factories, remain in early stages and lack sufficient funding to offset near-term risks.

Grid Integration and Infrastructure Limitations

Another critical restraint affecting the Europe Solar PV market is the challenge of integrating large volumes of intermittent solar power into aging grid infrastructure. While solar PV capacity has expanded rapidly, grid modernization efforts have lagged behind, leading to congestion, curtailment, and inefficiencies. Many European countries inherited centralized grid systems designed for conventional fossil fuel-based generation, which struggle to accommodate decentralized and variable renewable sources. According to ENTSO-E (European Network of Transmission System Operators for Electricity), grid congestion issues led to the curtailment of over 4 terawatt-hours (TWh) of renewable energy in 2022, primarily in Germany, Spain, and Italy. Curtailment occurs when excess solar generation cannot be transmitted due to insufficient interconnection capacity or storage availability. Moreover, outdated distribution networks in rural and suburban areas cannot often handle bidirectional power flows from distributed solar installations. Investments in smart grids, battery storage, and cross-border interconnectors are progressing, but at a slower pace than required.

MARKET OPPORTUNITIES

Corporate Power Purchase Agreements (PPAs) Expansion

An emerging opportunity for the Europe Solar PV market lies in the rapid proliferation of corporate power purchase agreements (PPAs), which enable businesses to procure renewable energy directly from developers. These long-term contracts offer companies stable electricity pricing while providing developers with predictable revenue streams, fostering mutual benefits. According to BloombergNEF, corporate PPA activity in Europe reached a record 7.2 gigawatts (GW) in 2023, representing a major increase compared to the previous year.

Scandinavia, the Iberian Peninsula, and the Benelux region have emerged as hotspots for corporate PPAs, driven by high solar irradiation, favorable regulatory environments, and ambitious sustainability goals among multinational corporations. For instance, Google, Microsoft, and Amazon have collectively signed over 3 GW of renewable energy contracts in Europe, predominantly backed by solar PV projects. Moreover, the European Commission’s push for corporate decarbonization under the Corporate Sustainability Reporting Directive (CSRD) is incentivizing more businesses to adopt clean energy sourcing strategies.

Floating Solar PV Installations

Floating photovoltaic (FPV) systems represent a promising opportunity for the European solar PV market, particularly in land-constrained regions and water-rich countries. FPV involves installing solar panels on floating structures atop reservoirs, lakes, and coastal waters, offering dual benefits of land conservation and enhanced efficiency due to the cooling effect of water. According to the International Renewable Energy Agency (IRENA), Europe accounted for over 1.5 gigawatts (GW) of installed floating solar capacity by mid-2023, with active deployments in France, the Netherlands, Portugal, and Germany. As per DNV GL, floating solar can achieve higher energy yields compared to land-based systems, owing to reduced dust accumulation and lower operating temperatures. In addition to efficiency gains, FPV supports grid stability by utilizing existing hydropower infrastructure, particularly in Southern Europe.

MARKET CHALLENGES

Permitting Delays and Administrative Bottlenecks

A persistent challenge hindering the European solar PV market is the complexity and sluggishness of permitting processes for new solar installations. Despite ambitious renewable energy targets, many EU countries face prolonged approval timelines due to overlapping jurisdictional requirements, environmental assessments, and public consultations. Germany, traditionally a leader in solar adoption, encountered administrative backlogs in 2023 due to revised zoning laws and local opposition to ground-mounted installations. While some countries, including Spain and the Netherlands, have streamlined approval mechanisms through digital platforms and standardized documentation, inconsistencies remain across the bloc. The absence of a unified permitting framework hampers cross-border investment and undermines the EU’s broader goal of achieving a synchronized energy transition. Addressing these bureaucratic inefficiencies is crucial to unlocking the full potential of the Europe Solar PV market in the coming decade.

Skilled Labor Shortage and Workforce Development Gaps

A growing concern within the Europe Solar PV market is the shortage of skilled labor and trained professionals necessary to support the sector’s rapid expansion. As demand for solar installations surges, the workforce has struggled to keep pace, leading to project delays and increased labor costs. According to the International Renewable Energy Agency (IRENA), the European solar industry requires an estimated 500,000 additional skilled workers by 2030 to meet deployment targets, yet current training programs and vocational pathways fall short of this demand. Countries like Poland and the Czech Republic, where PV adoption is accelerating, report acute shortages of certified installers, electrical engineers, and system designers. Even in mature markets such as Germany and France, recruitment challenges persist, particularly in rural areas where experienced technicians are retiring without adequate replacements. Educational institutions and industry stakeholders have initiated re-skilling and apprenticeship programs, but coordination remains fragmented.

REPORT COVERAGE

SEGMENTAL ANALYSIS

By Type Insights

Crystalline silicon (c-Si) dominated the Europe Solar PV market in 2024. This segment's overwhelming dominance is primarily driven by its high efficiency, declining costs, and mature manufacturing ecosystem. Crystalline silicon modules—comprising both monocrystalline and polycrystalline variants—are preferred for their superior performance under diverse climatic conditions, making them suitable for utility-scale, commercial, and residential applications across Europe. Monocrystalline silicon panels, in particular, have seen a surge in demand due to their higher energy conversion efficiencies, which are high in commercial models. As per Wood Mackenzie, over 85% of new installations in Germany and Spain in 2023 utilized monocrystalline technology. Moreover, strong supply chain integration within the EU, particularly through partnerships with Asian manufacturers and local European integrators, ensures consistent availability.

The thin-film PV segment is emerging as the fastest-growing type within the Europe Solar PV market, projected to expand at a CAGR of 6.2%. This growth trajectory is being fueled by unique application advantages that crystalline silicon cannot match, such as lightweight design, flexibility, and better performance in low-light conditions. One of the key drivers is the increasing adoption of thin-film technology in Building-Integrated Photovoltaics (BIPV). In countries like France and the Netherlands, where urban density is high and architectural aesthetics are prioritized, thin-film panels—especially those based on cadmium telluride (CdTe) and copper indium gallium selenide (CIGS)—are being incorporated into facades, windows, and rooftops. Also, thin-film solar is gaining traction in agrivoltaics, where semi-transparent panels can be placed above crops without blocking sunlight entirely. Pilot projects in Germany and Italy are leveraging this feature to dual-use land for agriculture and energy generation.

By End User Insights

The residential end-user segment held the largest share of the Europe Solar PV market by capturing 47.2% of total installations in 2024. This control is attributed to growing consumer awareness about energy independence, favorable government incentives, and the plummeting cost of rooftop solar systems. The popularity of self-consumption models, aided by declining battery storage prices, has further boosted residential adoption. Furthermore, policy support plays a pivotal role. Countries like Spain and Poland introduced VAT exemptions and direct subsidies for homeowners installing solar systems. The European Commission also encouraged decentralized energy production via the Clean Energy Package, enabling prosumer participation.

The industrial category—including small and medium enterprises (SMEs)—is experiencing the highest growth rate, expanding at a CAGR of 11.5%. This rapid acceleration stems from increasing corporate sustainability mandates, rising electricity costs, and the economic benefits of on-site power generation. Industries across sectors such as food processing, logistics, and manufacturing are investing heavily in rooftop and ground-mounted PV systems to reduce operational expenses and meet environmental targets. A significant catalyst is the rise in Corporate Power Purchase Agreements (PPAs), particularly in Northern and Western Europe.

By Deployment Insights

The ground-mounted PV deployment segment accounted for the biggest share of the Europe Solar PV market by contributing 58.4% of total installed capacity in 2024. This rule is primarily due to the ability of ground-mounted systems to accommodate large-scale utility projects, which are essential for meeting national renewable energy targets. Countries like Spain, Germany, and Poland have led the way in deploying expansive photovoltaic farms on non-agricultural or degraded land. Another key driver is the scalability of ground-mounted systems, which allows developers to integrate advanced tracking technologies and bifacial modules for enhanced energy yield. Moreover, grid connection infrastructure is more straightforward for centralized ground-based installations, especially in regions with robust transmission networks. These factors collectively reinforce the continued leadership of the ground-mounted segment in shaping Europe’s solar energy landscape.

Rooftop solar represented the fastest-growing deployment segment in the Europe Solar PV market, registering a CAGR of 9.8%. This rapid expansion is driven by increased adoption among residential and commercial users, supported by policy incentives, lower installation costs, and rising electricity tariffs. Germany remains the epicenter of rooftop growth, with over 6 GW of distributed PV capacity added in 2023. The country’s "Solarpakt" initiative introduced streamlined permitting and tax incentives for homeowners and businesses, accelerating rooftop deployment nationwide. Simultaneously, the integration of rooftop solar with battery storage systems is gaining momentum. According to Wood Mackenzie, residential battery installations in Europe surpassed 1 GWh in 2023, with over 60% of these paired with rooftop PV. This synergy enhances energy self-sufficiency and reduces reliance on the grid during peak hours. Local governments are also promoting rooftop initiatives through mandatory solar provisions. For example, France implemented a law requiring large commercial rooftops to be partially covered with solar panels starting in 2023.

REGIONAL ANALYSIS

Germany held the largest share of the Europe Solar PV market by accounting for 28.5% of total installed capacity in 2024. As a pioneer in renewable energy adoption, Germany continues to lead in both utility-scale and distributed solar deployments. The country reached a cumulative installed PV capacity of over 77 GW, surpassing earlier projections. This sustained growth is largely attributable to progressive policy frameworks such as the Renewable Energy Sources Act (EEG), which was revised in 2023 to accelerate project approvals and expand incentive programs. Additionally, the government introduced a 0% VAT on self-consumed solar electricity, boosting residential and commercial uptake. The industrial sector has also played a crucial role, with major corporations signing corporate PPAs to meet sustainability goals.

Spain has emerged as a key player in utility-scale solar development, adding a notable share of new PV capacity in 2023, driven by favorable regulatory reforms and abundant solar resources. A major catalyst has been the government’s auction mechanism, ensuring long-term revenue stability for developers. Moreover, Spain’s simplified permitting process and reduced interconnection fees have attracted substantial foreign investment, particularly from international utilities and independent power producers (IPPs). Corporate off-take agreements have also gained traction, with multinational firms like Google and Amazon signing long-term PPAs to power their data centers and logistics hubs.

Italy has witnessed a resurgence in solar installations following a series of policy reforms aimed at streamlining project development and enhancing investor confidence. The introduction of the "Superbonus 110%" scheme, which offers a 110% tax deduction for energy efficiency upgrades including rooftop solar, spurred a wave of residential and commercial installations. Additionally, the Italian government launched the PNRR (National Recovery and Resilience Plan), allocating EUR 5.2 billion to renewable energy infrastructure, including solar parks and grid enhancements. Industrial adoption has also grown, with major manufacturing companies integrating solar to hedge against volatile electricity prices.

The Netherlands has rapidly ascended as a leader in innovative solar deployment strategies. Despite its relatively modest geographic size and moderate solar irradiation, the country has leveraged smart urban planning and floating solar technologies to maximize output. The Dutch government’s “Energy Agreement for Sustainable Growth” has provided a clear roadmap for solar expansion, targeting 30 GW of installed PV capacity by 2030. Municipalities have played a key role in this effort, mandating solar installations on new buildings and promoting agrivoltaics. Commercial and industrial sectors have also embraced solar, with companies like DSM and ASML committing to 100% renewable operations. The rise of green hydrogen projects powered by solar PV further underscores the Netherlands’ strategic positioning.

Poland is one of the fastest-growing markets in Central and Eastern Europe. The country added over 5 GW of new solar PV capacity in 2023, driven by supportive policies and a rapidly evolving domestic solar ecosystem. A key enabler has been the “My Electricity” (Mój Prąd) subsidy program, which provides financial assistance for residential solar installations. Additionally, Poland’s Prosumer Law, enacted in 2022, simplified net metering procedures and enabled surplus energy sales, encouraging greater participation. The industrial sector has also embraced solar as a means to mitigate high electricity costs, which ranked among the highest in the EU.

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, Acciona Energia S.A., and NextEra Energy Sources LLC.

The competition in the Europe Solar PV market is characterized by a dynamic mix of established global leaders, emerging regional players, and new entrants aiming to capitalize on the region’s robust renewable energy growth. As governments accelerate their climate commitments and introduce favorable regulatory frameworks, companies are under pressure to innovate, scale operations, and differentiate themselves through superior technology, service offerings, and sustainability practices. The market remains highly fragmented, with numerous firms competing across different segments, including module manufacturing, project development, system integration, and digital asset management. While international giants dominate utility-scale projects, medium-sized enterprises and startups are making notable strides in niche areas such as agrivoltaics, building-integrated photovoltaics, and decentralized energy networks. Strategic collaborations, vertical integration, and digital transformation have become essential tools for maintaining a competitive edge. Additionally, the increasing emphasis on local content requirements and environmental standards is reshaping market entry strategies and influencing long-term industry dynamics.

Top Players in the Europe Solar PV Market

One of the leading players in the Europe Solar PV market is Siemens Energy. The company plays a critical role in supporting solar energy integration through its advanced grid technologies and digital solutions. Siemens offers a wide range of products including inverters, monitoring systems, and grid automation tools that enhance the efficiency and reliability of photovoltaic installations. With a strong presence across both utility-scale and distributed solar projects, Siemens contributes significantly to enabling seamless renewable energy transition across European countries.

Another key player is First Solar, a global leader in thin-film PV technology. Although headquartered in the United States, First Solar has a strong footprint in Europe, particularly in Germany, France, and the UK, where it supplies high-performance cadmium telluride (CdTe) modules. The company’s innovative approach to low-carbon, recyclable solar panels aligns with Europe's sustainability goals. Its involvement in large-scale ground-mounted solar farms supports national renewable targets and reinforces the region’s clean energy infrastructure.

Enel Green Power stands out as one of the most influential integrated renewable energy companies in Europe. A subsidiary of the Italian multinational Enel Group, it develops, manages, and operates PV plants across multiple European markets. Enel Green Power is known for its commitment to multi-technology renewable portfolios, combining solar with wind and storage solutions. The company actively engages in corporate power purchase agreements and green hydrogen initiatives, positioning itself at the forefront of Europe’s energy transformation.

Top Strategies Used by Key Market Participants

A primary strategy adopted by major participants in the Europe Solar PV market is vertical integration and supply chain localization. Companies are increasingly investing in local manufacturing units and forming strategic partnerships to reduce dependency on imported components and ensure faster project execution. This approach not only enhances cost-efficiency but also mitigates risks associated with global supply chain disruptions.

Another crucial strategy is expanding into hybrid energy solutions. Leading firms are integrating solar PV with battery storage, wind, and green hydrogen technologies to offer comprehensive clean energy packages. These diversified offerings allow businesses and utilities to optimize energy generation, improve grid stability, and meet long-term decarbonization objectives more effectively.

Lastly, strengthening customer engagement through digitalization and smart monitoring is gaining momentum. Key players are deploying advanced software platforms for real-time performance tracking, predictive maintenance, and remote diagnostics. This digital transformation enhances system efficiency, improves return on investment, and strengthens competitiveness in an evolving market landscape.

RECENT MARKET DEVELOPMENTS

• In February 2024, Siemens Energy launched a new digital asset management platform tailored for solar PV installations across Europe. The solution enables real-time monitoring and predictive maintenance, enhancing operational efficiency for large-scale solar farms and reinforcing Siemens’ leadership in smart energy solutions.
• In June 2023, First Solar announced the expansion of its thin-film module production line at its facility in Frankfurt, Germany. This move was aimed at meeting rising demand for high-efficiency, low-carbon solar panels aligned with European Union sustainability directives and circular economy principles.
• In September 2024, Enel Green Power initiated construction on a hybrid solar-wind park in Spain, integrating battery storage into the design from the outset. This forward-looking project underscores the company’s commitment to multi-technology renewable portfolios and strengthens its leadership in integrated clean energy solutions.
• In January 2023, Hanwha Q CELLS, although a South Korean firm with a strong foothold in Europe, invested in a new solar module recycling facility in Germany. This initiative supports the company’s sustainability vision and aligns with EU regulations promoting circularity in PV waste management.
• In November 2023, BayWa r.e. , a prominent European solar developer, acquired a Finnish solar project developer to expand its geographical reach and increase its pipeline of utility-scale solar projects in the Nordic region, enhancing its regional presence and project execution capabilities.

MARKET SEGMENTATION

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

By Type

• Crystalline Silicon
• Thin Film
• Others

By Grid Type

• On-grid
• Off-grid

By Deployment

• Ground Mounted
• Rooftop
• Others

By End-User

• Residential
• Non-Residential
• Utilities

By Country

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