In the EU, we’re ever-more familiar with the possibilities of solar energy. It allows us to harness the energy of the sun and use it in our homes and businesses. 

This article shines a light on the rapid growth of solar energy in Europe in recent years and its benefits for both consumers and the EU as a whole.

Solar technology at a glance

A range of solar technologies are available to harness the sun’s energy in different ways. 

• Solar photovoltaic (PV) panels, comprised of individual solar cells, convert sunlight into electricity.
• Solar thermal panels harness the sun’s heat and are primarily used to heat water and spaces in buildings, can provide steam for industry, or even air conditioning and cooling.
• Concentrated solar power technology uses mirrors to concentrate sunlight and produce heat and steam to generate electricity.

Growth of solar energy in Europe

The growth of solar energy in Europe in recent years is a trajectory we can all be proud of. 

Solar PV has become the most competitive source of electricity in many parts of the EU, thanks to massive decreases in its cost. Eurostat reports that 47.5% of the EU’s electricity consumption came from renewables in 2024, of which solar PV accounted for almost a quarter at 23.4%, and in June 2025, for the first time in history, the sun was the main source of the electricity we generated! 

The EU’s solar PV capacity reached an estimated 406 GW in 2025. This is compared to 338 GW in 2024 and comfortably surpasses the objective of the EU Solar Energy strategy from 2022 that aimed at reaching 380 GW by 2025 (source: SolarPower Europe).

Meanwhile, 11 million rooftops in Europe are equipped with solar thermal and thermal storage. The total installed capacity of solar thermal in mainland Europe was 41 GW in 2023. (source: Solar Heat Europe). 

What are the benefits of solar energy for households and businesses?

Solar photovoltaic and solar thermal panels can be installed on rooftops and even integrated into buildings, for instance as solar roof tiles or facades. In some EU countries, homeowners and tenants can install plug-in mini-solar panels on balcony railings, walls or terraces.

If more energy than needed is produced by solar PV panels at a given moment, it can be 

• stored in local batteries or in local thermal storage
• shared with other consumers
• injected to the electricity grid and sold

While not every building is suitable for installing solar panels, energy communities and energy sharing solutions mean that you can still enjoy the benefits of this clean and cheap energy source, even if it’s not possible to install them on your own building. 

Solar thermal can be a great source of clean and affordable hot water and space heat not only for homes, but also industry. Examples of industries using solar thermal in the EU include the paper industry, agri-food, the flowers industry and the beverages industry. 

What are the benefits of solar energy for the EU as a whole?

Solar energy has a significant role to play in the EU’s transition towards cleaner, more affordable and secure energy, and our journey to become the world’s first climate neutral continent by 2050. Listed as one of the key technologies in the Net Zero Industry Act, which is aiming at scaling up the manufacturing of clean technologies in the EU, solar PV and solar thermal are expected to grow further in the coming years. 

As a cheap and abundant energy source that we can produce at home, solar contributes to reducing the price of our electricity, putting the EU at a competitive advantage and helping to drive economic growth and create jobs. 

The EU has a strong manufacturing base for solar thermal, with 90% of our demand already met by EU production. The EU countries with the largest solar thermal installed capacity are Germany (13 285 MWth), followed by Greece (4 2024 MWth) and Italy (3 829 MWth), according to Solar Heat Europe. 

An estimated 7.2 million people were employed in solar PV in 2024, according to the International Renewable Energy Agency’s Annual Review 2025. 10.6% of these jobs were located in the EU, providing employment for an estimated 764 400 people. Additionally, solar heating and cooling and concentrated solar power contributed 19 000 and 5 000 jobs respectively. 

Furthermore, solar PV generation is often decentralised in nature, which can play a key role in strengthening our energy system’s resilience. Although solar is a variable energy source, meaning it cannot be produced 24/7, the energy produced can be stored and shared, allowing solar systems to supply electricity even at night or during grid disruptions. 

Related links

• Solar energy
• Article 5 things you should know about solar energy (June 2025)
• Fact page Solar energy in buildings
• Net-Zero Industry Act