Europe’s solar energy industry achieved remarkable milestones in 2024, marking a record-breaking year for generation and capacity expansion. Solar energy continues to play a pivotal role in the EU’s green transition, driven by innovations, investments, and policy efforts.
This article explores Europe’s solar achievements in 2024, highlighting key areas of growth and developments according to data reported by energy think tank Ember.
2024: A Record Year for Solar Growth
In 2024, Europe’s solar industry saw unprecedented growth, with annual solar generation increasing by 54 TWh (+22%) compared to 2023. This marked an acceleration from the previous year, which saw a 40 TWh increase.
The EU also set a record for capacity additions, installing 66 GW in 2024—equivalent to more than 450,000 solar panels per day. This rapid expansion pushed total installed solar capacity to 338 GW, keeping the EU on track to meet its REPowerEU interim goal of 400 GW by 2025.
If this growth continues, the EU’s ambitious 2030 target of 750 GW will be within reach. However, the pace of deployment is already surpassing what many national targets require.
Importantly, solar energy growth occurred across every EU country in 2024. Sixteen countries generated over 10% of their electricity from solar power—an increase from 13 in 2023.
Innovative approaches, such as balcony solar panels in Germany and agri-PV systems that integrate solar with agricultural land use, are expanding the reach of solar energy beyond traditional rooftops and fields. Residential rooftop installations, which faced significant losses, were overtaken by utility-scale solar, the largest market segment in 2024, per Solar Power analysis.
Capital investments in EU solar PV had steadily climbed from €19 billion in 2020 to €60 billion in 2023. However, this upward trend shifted in 2024.
European wholesale module prices hit record lows, declining by 35% between January and November 2024, following a 50% drop the previous year as seen below. This sharp price reduction was driven by falling supply chain costs and overcapacity in the market.
Solar Meets Demand Like Never Before
The success of solar energy is reflected in its ability to meet growing electricity demands across the EU. In 2024, 12 EU countries reported solar meeting at least 80% of their electricity demand during peak hours on multiple occasions.
Notably, Hungary saw an incredible leap, with solar meeting over 80% of demand on 70 days in 2024—up from just 10 days in 2023.
This trend underscores the potential of solar energy to displace expensive and polluting fossil fuels during daylight hours. However, achieving consistent reliability requires integrating clean flexibility solutions, such as battery storage, expanded grids, and smart electrification.
These technologies can store excess solar energy during midday production peaks and distribute it during evening demand surges, reducing reliance on fossil fuels for power balancing.
Notably, the EU’s shift to solar, alongside wind, has cut coal-fired electricity generation by nearly two-thirds over the past decade. This is despite a brief rise after Russia’s 2021 invasion of Ukraine.
Clean Flexibility: The Backbone of Solar’s Future
Clean flexibility is central to ensuring the continued growth of solar energy in Europe. Batteries, in particular, play a critical role in shifting energy supply to match demand. By storing excess energy generated during sunny hours and delivering it when demand peaks, batteries stabilize the grid and maximize solar’s value.
Co-locating batteries with solar plants is quickly becoming an industry standard. This practice enables solar producers to avoid selling electricity at low midday prices and instead capitalize on higher prices during evening peaks. It also strengthens the financial case for solar energy by ensuring profitability even in periods of surplus generation.
In 2024, the deployment of battery storage continued to grow rapidly. EU-installed battery capacity doubled from 8 GW in 2022 to 16 GW in 2023.
However, this growth remains uneven, with 70% of capacity concentrated in Germany and Italy. To fully realize the potential of batteries, the EU must address barriers like double grid charging and restrictive market participation rules.
Solar Savings: Economic Wins and Consumer Perks
Solar energy’s rapid growth delivered significant economic benefits in 2024, particularly through reduced electricity prices. Abundant solar generation during midday hours frequently drove hourly power prices to zero—or even below.
- Negative or zero-price hours doubled in 2024, occurring 4% of the time across the EU, compared to 2% in 2023.
These price dynamics create opportunities for consumers and market participants alike. Consumers can save money by using smart electrification technologies to shift energy use to periods of lower prices.
Meanwhile, market players, such as battery operators, can earn additional revenue by purchasing power at low midday prices and selling it during high-demand evening hours.
Despite the successes of 2024, significant challenges remain, however. One major barrier is the lack of infrastructure to support flexible energy use. For example, smart meters are essential for giving consumers real-time control over their energy usage, but adoption remains low.
In 10 EU countries, fewer than 30% of households have smart meters, and six countries report penetration below 10%. Additionally, the prevalence of fixed-price electricity contracts limits consumers’ ability to take advantage of low-cost solar energy during midday hours.
Grid expansion and modernization are also critical. While solar growth has exceeded expectations, national targets for grid development remain outdated. Expanding cross-border interconnectors will allow countries to share surplus solar energy, reducing reliance on fossil fuels and improving grid stability across the region.
The year 2024 was a milestone for solar energy in Europe, highlighting the industry’s ability to drive decarbonization and lower energy costs. With the right mix of technological advancements, grid modernization, and supportive policies, Europe could meet its 2030 solar targets. By doing so, the region can lead the global transition to clean, reliable, and affordable energy.
