According to the SolarPower Europe report, Europe broke records once again in 2024, with 65 GW of new solar capacity installed, marking an eighth consecutive record.
But behind these impressive figures, growth is coming to a halt: after rising from +41% to +53% between 2021 and 2023, it is falling to just +4.4% this year.
Why this slowdown?
First, the stabilisation of electricityprices . After reaching an all-time high of €700/MWh in August 2022, the market is now fluctuating between €130and €205/MWh. This moderation has reduced the urgency of investing in self-generation.
Secondly, Europeanelectricity grids are struggling to absorb the boom in renewable energies . The pace of infrastructure development is insufficient to meet new demand.
Finally, the economic context is weighing on investment capacity, particularly in the residential sector, where installations are down by 8% . Inflation, high interest rates and budget uncertainties are holding householdsback .
While growth is slowing in some sectors, it is picking up elsewhere, and companies are seizing the opportunity. Although the amount of CAPEX remains a brake, the fall in the price of photovoltaic panel components is enabling businesses to take advantage of the benefits of solar power at more affordable prices.
As a result, commercial and industrial photovoltaic installations now account for 39% of the market, while large-scale solar power plants are enjoying their best performance in five years, reaching 42% of the market, up from 36% in 2023.
Europe is playing a major role in the development of solar energy, but the exponential growth phase seems to be behind us. The challenge ahead is not just to install more panels, but to structure an ecosystem capable of absorbing and harnessing this energy.
