BRUSSELS — The European Union installed 65.1 gigawatts of solar capacity in 2025, down from 65.6 GW in 2024, marking the first annual decline since 2016.
The slowdown ends years of rapid expansion. Yet the EU still met a major interim target: the 2022 Solar Strategy set a goal of 400 GW of total installed capacity by end of 2025. Europe reached an estimated 406 GW.
The decline is projected to continue through 2026 and 2027, with growth expected to resume only in 2028 and 2029. The EU is not expected to reach 2025 installation levels again until 2030, when it projects about 67 GW of new capacity annually. This trajectory suggests the bloc will fall short of its 750 GW solar target for 2030.
"While the 2025 solar target was met, the 2030 goal is now moving out of reach for the first time," said Walburga Hemetsberger, CEO of SolarPower Europe. She described the slowdown as coming at a critical moment when accelerated deployment is essential.
Solar accounted for 13 percent of Europe's electricity in 2025. In June 2025, solar provided more power than any other single source across the EU.
Several factors are driving the contraction. An uncertain economic climate following the energy crisis has led governments to reduce rooftop support schemes. Energy price relief on households has also slowed the home solar market.
Home rooftop solar fell from 28 percent of the EU's installed capacity in 2023 to 14 percent in 2025. For the first time, utility-scale solar farms accounted for over 50 percent of newly installed capacity. These large projects face their own headwind: increasing hours of negative electricity pricing erode revenues.
Germany and Spain remained the EU's largest solar markets, driven largely by utility-scale projects as rooftop incentives declined.
France surpassed Italy for third place in 2025, bolstered by strong growth in commercial and utility-scale sectors. Italy's rooftop market contracted sharply after the government ended support schemes.
Romania and Bulgaria entered the top 10 for the first time. Romania recorded the fastest growth rate among EU members, while Bulgaria's expansion was tied to national initiatives.
