EU Market Outlook for Solar Power 2022-2026

2022 was the year when solar power displayed its true potential for the very first time in the EU, driven by record high energy prices and geopolitical tensions that largely improved its business case. 

No longer constrained by severe supply chain bottlenecks and COVID-19 related restrictions, the 27 EU Member States saw 41.4 GW of new solar PV capacity connected to their grids, a 47% increase compared to 2021. We are confident that further annual market growth will beat all expectations, exceed 50 GW deployment level in 2023, and more than double from today to 85 GW in 2026. 

Like last year, Germany is again Europe’s biggest solar market in 2022 with 7.9 GW of newly installed capacity, followed by Spain (7.5 GW), Poland (4.9 GW), the Netherlands (4.0 GW), and France (2.7 GW). While the Top 5 EU markets stayed the same, Portugal and Sweden have entered the Top 10, at the expense of Hungary and Austria.

For the first time, all Top 10 markets are also GW-scale markets. In 2022, 26 out of 27 EU Member States deployed more solar than the year before.

Getting ready for solar starts with planning. The upcoming revision of European National Energy and Climate Plans (NECPs), expected for June 2023, is a key moment. If there is one message from this report for policymakers across Europe: take a good look at these projections, embrace the opportunity, and reflect it in your revised NECPs

The biggest mistake we can make is to take things for granted. Getting ready is an action, it’s the opposite of complacency. We have set out the five key points that need attention and action now from EU and national decision makers to grasp the solar opportunity: 

1. Growing the pool of certified solar installers and skilled workforce 

2. Maintaining regulatory stability and investor certainty for solar and renewables 

3. Enabling smoother integration of solar PV in the grid, especially on distribution level 

4. Improving spatial planning and permitting procedures for solar in harmony with people and nature 

5. Ensuring sustainable and reliable solar PV supply chains