Solar energy, EU "slows" pace/ First annual decline in over a decade amid subsidy reductions
The expansion of solar power in the European Union is experiencing its first annual decline in more than a decade, according to industry data. The decline comes as some governments cut subsidies for rooftop solar panels, reflecting a shift in priorities. Countries are reallocating budgets toward defense and local industries, impacting green measures and support for clean energy.
SolarPower Europe reports that the EU is projected to install 64.2 gigawatts of new solar capacity by the end of 2025, a 1.4% drop from the 65.1 gigawatts installed last year. This decline would be the first since 2015, slowing Europe’s rapid progress in the clean energy transition.
Last month, solar energy accounted for 22% of the EU’s total electricity production, making it the largest single source of energy over that period. Despite this achievement, current rates suggest that the EU will fall short of its climate targets. The main reason for this shortfall is a decline in the installation of solar panels on residential rooftops.
This year, these panels are forecast to contribute just 15% of new capacity, a significant drop from their share of around 30% between 2020 and 2023. Germany and France have reduced feed-in tariff payments for rooftop solar, while the Netherlands has reduced support for households that export excess solar power to the grid.
Reduced government incentives have led to fewer rooftop solar installations across Europe. As countries prioritize other budgetary needs, support for clean energy initiatives has waned, impacting overall growth in the sector.
The move away from supporting solar installations highlights changing political priorities within Europe. With budgets strained by rising spending on defense and local industries, green measures have been neglected.
As Europe faces these challenges, maintaining momentum in the development of renewable energy remains essential for achieving long-term climate goals and reducing dependence on external energy sources.
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