This year will be the first in a decade with a negative growth rate for European solar installation, according to a mis-year analysis from SolarPower Europe.
The contraction puts the continent at risk of missing European Union deployment targets of 750GW (DC) of installed solar power by 2030.
Under the current trajectory only 723GW (DC) of capacity would be reached.
The downturn is primarily driven by the rooftop segment, and particularly by residential solar systems, according to SolarPower Europe.
“In many major Member States, primarily households and SMEs are postponing investment in solar installations following lowering electricity price trends and weakened support frameworks,” the trade group wrote.
“In many cases, rooftop solar incentives have been withdrawn or scaled back without effective alternatives, resulting in a short rush and sudden market decline.”
The report said that where the residential solar market accounted for 30% of solar installations between 2020 and 2023, the sector is set to contribute just 15% of new capacity this year.
Utility-scale solar, on the other hand, will continue to grow and will account for around half of new additions this year.
“Part of its resilience is based on de-risking instruments that enable affordable financing and faster deployment,” the mid-year analysis reads.
“Corporate Power Purchase Agreements (cPPAs) have offered long-term certainty at competitive cost for developers and off-takers, which is the reason for the boom of PPAs in the recent years.”
The report called on EU member states to improve the value of solar electricity within the system, by rapidly scaling up battery storage and overall system flexibility.
