Defining moment for solar

Just last week, we published the first-of-its-kind Mid-Year Analysis for the EU solar market. The report reveals that for 2025, the annual market is expected to contract for the first time since 2015, with a projected -1.4% growth in the most likely scenario. This follows the exceptional annual market expansions in 2022 (+ 47%) and 2023 (+51%), and flattened growth in 2024 (+3.3%).

In order to meet the 2030 target, and deliver the continent’s decarbonisation and competitiveness goals, Europe must install nearly 70 GW per year through the rest of the decade. The current trend suggests that Europe will fall short of its goals, hosting 723 GW of solar PV by 2030, compared to the required 750 GW.

The number may seem small, but the symbolism is big. Market decline, right when solar is meant to be accelerating, deserves EU leaders’ attention. Europe needs competitive electricity, energy security, and climate solutions. Solar delivers on all of those needs. Now policymakers must deliver the electrification, flexibility and energy storage frameworks that will drive solar success through the rest of the decade.

Read the press release and download the report here.

On the policy side, there have been several big announcements from the EU this month. The European Commission put forward its proposal for the next EU long-term budget. This EU budget proposal offers important signals for solar but lacks clarity at this stage. By boosting support for the clean transition, doubling research & innovation funding, and multiplying energy infrastructure funding fivefold, the European Commission takes a step in the right direction to deliver on the energy transition. However, the European Competitiveness Fund is too small and does not provide enough certainty. Read our full statement here.

Earlier in the month, the European Parliament adopted its own-initiative report on the security of energy supply in the EU. In this text, Members of the European Parliament call for a comprehensive and multi-faceted strategy to enhance the EU’s energy security notably through diversification and decarbonisation, in light of geopolitical, environmental, and infrastructural challenges. However, the report falls short of providing the clear policy shift Europe urgently needs. While it mentions the need for deployment of renewables, electrification, energy efficiency and domestic clean energy production, the overall narrative remains heavily rooted in a fossil fuel paradigm. Europe’s fossil fuel import dependency is an Achilles Heel for the EU’s economic and energy security. The Parliament should provide a clear energy security vision to make Europe more resilient against geopolitical threats. Read our reaction here.

On the events side, we co-hosted the first ever Battery Business and Development Forum in Frankfurt, Germany on 16 July. The conference brought together over 450 industry leaders to chart the future of grid-scale battery energy storage in Europe. SolarPower Europe’s new Battery Storage Europe Platform was present with a clear message: Europe needs 10X battery storage by 2030! Without urgent action, the EU risks stalling its energy transition. The Battery Storage Europe Platform calls for a tenfold increase in battery storage by 2030. This is vital to sustain the rapid growth of solar and other renewables, and to ensure the EU’s energy security, resilience and competitiveness.

We look forward to the next event in Brussels on 4 September: our annual Rooftop REconnect. We are pleased to have Philippe Lamberts, Ursula Von der Leyen’s climate advisor, and former MEP, as a keynote speaker at the event. Read more about the Rooftop REconnect event here.

This will be our last newsletter for the summer break and our next edition will arrive in September, stay tuned!