EU Solar Power Surges as Capacity, Jobs and Consumer Adoption Hit Record Highs

Solar energy has emerged as a central pillar of the European Union’s clean energy transition, with new data highlighting rapid capacity growth, rising consumer adoption and increasing economic benefits across the bloc.

Renewable sources accounted for 47.5 per cent of the EU’s total electricity consumption in 2024, with solar photovoltaic (PV) contributing nearly a quarter of that share at 23.4 per cent. In a historic milestone, solar energy became the EU’s largest source of electricity generation for the first time in June 2025.

Solar capacity exceeds EU targets

The EU’s installed solar PV capacity is estimated to have reached 406 GW in 2025, up from 338 GW in 2024. This comfortably exceeds the 380 GW target set under the EU Solar Energy Strategy launched in 2022. The rapid expansion has been driven largely by steep declines in technology costs, making solar PV one of the most competitive electricity sources across several EU regions.

Alongside PV, solar thermal deployment has continued steadily. Around 11 million rooftops across Europe are now equipped with solar thermal systems and thermal storage. Total installed solar thermal capacity in mainland Europe stood at 41 GW in 2023, data from Solar Heat Europe show.

Rooftop solar gains traction among consumers

Solar PV and solar thermal technologies are increasingly being integrated into buildings, including rooftops, façades and solar roof tiles. In several EU member states, residents are also permitted to install small plug-in solar systems on balconies, terraces and walls.

Excess electricity generated by rooftop solar installations can be stored in batteries or thermal storage, shared within local energy communities, or fed into the grid and sold. Policymakers note that energy-sharing models are enabling households and businesses to benefit from solar power even where on-site installations are not feasible.

Solar thermal systems are also gaining traction in industry, providing clean heat for sectors such as agri-food processing, paper manufacturing, beverages and floriculture.

Strategic role in EU climate and industrial policy

Solar energy is identified as a key technology under the EU’s Net Zero Industry Act, which aims to scale up domestic manufacturing of clean technologies and strengthen energy security. As a locally produced and abundant resource, solar power is seen as critical to lowering electricity prices, improving competitiveness and supporting the EU’s goal of climate neutrality by 2050.

The EU already maintains a strong manufacturing base in solar thermal technologies, meeting around 90 per cent of internal demand. Germany leads the bloc in installed solar thermal capacity, followed by Greece and Italy, according to industry data.

Employment and energy security benefits

The solar sector has also become a significant source of employment. The International Renewable Energy Agency estimates that 7.2 million people were employed globally in solar PV in 2024. Around 10.6 per cent of these jobs—approximately 764,400—were located in the EU. Solar heating, cooling and concentrated solar power contributed a further 24,000 jobs combined.

Experts also highlight solar’s role in strengthening energy system resilience. While generation is variable, the decentralised nature of solar PV, combined with storage and energy-sharing solutions, allows electricity to be supplied during night-time hours or grid disruptions.

With capacity growth accelerating and policy support in place, solar energy is expected to play an increasingly decisive role in Europe’s energy mix over the coming decade.