According to preliminary estimates by SolarPower Europe, annual investments in solar installations in the European Union declined by 13% to €55bn, mainly due to falling component prices lowering capital expenditure. The European Union installed 65.5 GW of new solar capacity in 2024 (4% above 2023 installations), to over 330 GW, i.e., 4 times its 2014 level (82 GW). This slowdown in installations - through still growing - can be attributed to a stagnating electrification rate (23% over the past five years) and the needs for storage and flexibility tools, despite falling solar component prices and lower upfront costs for solar installations (average cost decline of 28% for ground-mounted utility-scale solar projects in 2024).
Solar installations declined in five of the largest solar markets, with Spain, Poland, Netherlands, Austria, and Hungary installing less solar capacities in 2024 than in 2023, and grew at a slow rate in other leading markets such as Germany, Italy, France, Greece, and Portugal. In addition, rooftop solar installations declined in 2024 (5 GW added in 2024, compared to 13 GW installed in 2023), as the effects of the gas crisis wearing off.
The European Union needs to install 69 GW/year over the 2025-2030 period to reach its REPowerEU target.
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