At a critical stage of Europe's energy transition, the slowdown in the deployment speed of solar photovoltaics and energy storage is causing high concerns in the industry. The latest "Solar Market Outlook Report" released by SolarPower Europe recently pointed out that if the current downward trend is allowed to continue, Europe may sacrifice its "competitiveness and energy security" and move towards a "self destructive" regression.

SolarPower Europe CEO Walburga Hemetsberger emphasized at an online press conference that 2025 is expected to be the first year in Europe in a decade where the newly installed photovoltaic capacity is lower than the previous year. The report predicts that the newly installed photovoltaic capacity in Europe this year will be 65.1GW, slightly lower than the 65.6GW in 2024. This turning point occurs against the backdrop of the EU's solar energy installed capacity growing more than fivefold in the past decade, and the proportion of solar energy in the EU's electricity structure doubling in the past five years. Although the total amount of wind and solar power generation has exceeded fossil fuels and the EU's 2025 installation target is still expected to be achieved, the deployment prospects for 2030 are not optimistic.

Michael Schmela, Executive Advisor and Director of Market Intelligence at SolarPower Europe, warns that according to the medium-term forecast, the installed solar capacity in the European Union may continue to decline until 2027 before recovering to single digit growth, and the deployment level in 2025 will not be restored until 2030. The market downturn is mainly due to the decline in the rooftop and household photovoltaic fields, while large ground power plants are also experiencing weak growth due to financing feasibility, grid congestion, and insufficient supporting energy storage.

The report points out that household photovoltaics will shrink in 19 European markets by 2025, with the sector's share dropping from a high during the 2023 energy crisis to 14%. Although "plug and play" systems such as balcony solar energy have grown significantly in Germany and other places, demonstrating sustained public interest, most countries have failed to introduce effective alternative solutions to support spontaneous self use and energy storage after canceling incentive policies such as net metering electricity prices, resulting in insufficient market momentum for household use.

The limitations of the power grid and the lag in energy storage support have further constrained development. The economic viability of the project is affected by issues such as grid congestion, periods of negative electricity prices, and power rationing. However, the deployment of energy storage, promotion of smart meters, and progress in system integration are still insufficient to support a higher proportion of solar energy grid integration. Dries Acke, Deputy CEO of SolarPower Europe, pointed out that current policies lack support for energy storage and are difficult to meet the needs of high proportion renewable energy grids.

To address the crisis, SolarPower Europe proposes five policy recommendations: firstly, placing renewable energy at the core of energy security policies; Secondly, formulate clear energy storage and flexibility strategies; Thirdly, we will revitalize the household photovoltaic market and introduce adaptive support mechanisms; The fourth is to build a sustainable, resilient, and localized solar energy supply chain; Fifth, establish special funds or banking tools to support local manufacturing, and prioritize the use of "Made in Europe" products in public procurement.

Europe has a production capacity base in solar inverter manufacturing (approximately 96GW), but there is still a gap in the silicon-based module supply chain. At present, some companies are actively expanding their local production capacity, such as French manufacturer Holosolis, which has produced TOPCon components through a technology authorization program to gradually enhance the autonomy of the industrial chain. Keywords: Photovoltaic New Energy, Photovoltaic New Energy News, Photovoltaic New Energy Information

The European solar energy industry is standing at a crossroads of development. Although the short-term slowdown in installed capacity has sounded the alarm, Europe is still expected to return to the growth track through timely policy adjustments, modernization of the power grid, accelerated deployment of energy storage systems, and construction of supply chain resilience, ensuring that its clean energy transformation and energy security goals do not deviate. As called for by the industry, viewing solar energy as a strategic pillar and supporting it with a flexible and forward-looking policy framework will be the key to avoiding "self destruction" and achieving a sustainable energy future. Editor/Xu Shengpeng