The European Union reached around 406 GW of installed solar capacity in 2024, an important milestone on the way to the REPowerEU target of 750 GW by 2030. Solar covered roughly 13 percent of EU electricity consumption last year, a record figure, and for the first time wind and solar combined generated more electricity than fossil fuels. These were the figures were presented by Antonio Arruebo, analyst at SolarPower Europe, at Huawei's Solar Summit in Frankfurt at the end of April.
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At the same time, the market has recorded a slight decline for the first time in a decade. New installations fell by around one percent to 65 GW. Arruebo cited the end of the energy crisis, falling electricity prices and reduced support such as investment grants and tax incentives, factors that have weighed particularly on the rooftop segment. Today, around half of the capacity newly installed each year goes to large-scale plants, which are growing in markets such as Germany, Italy, Poland and France.
Three problems are slowing solar deployment
Arruebo identified three central challenges, which he termed the "three Cs": cannibalisation, containment and congestion. Last year, electricity prices were in negative territory around 3.4 percent of the time, the equivalent of about two weeks. Spain, Germany and the Netherlands were particularly affected, each with more than 22 days per year. This weighs on the economics of solar projects and makes pure standalone configurations increasingly difficult to finance.
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In its medium scenario, SolarPower Europe expects only around 720 GW of installed capacity by 2030, falling short of the EU target. The actual potential, according to the association, is around 800 GW, provided the right measures are taken now. The political environment in Brussels has shifted following the recent geopolitical crisis, with policymakers now actively addressing independence through electrification, renewables and storage.
Battery storage must grow tenfold by 2030
Battery storage has followed a similarly dynamic trajectory. By the end of 2024, just under 80 GWh were installed in the EU, a tenfold increase in four years. By 2030, according to Arruebo, around 780 GWh will be needed, requiring another tenfold expansion. The medium scenario, however, points only to a fivefold increase. The European Commission, in its "Accelerate EU" communication, is targeting around 200 GWh of storage capacity by 2030.
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While residential storage dominated until 2023 with more than 70 percent of the market, large-scale storage now accounts for around 55 percent. Last year, almost 17 GWh of grid-connected large batteries received support in the EU. The top five markets are Germany with around 4.5 GWh (predominantly residential storage), Italy, Bulgaria with about 2.5 GWh, the Netherlands and Spain. Support approaches differ: Italy relies on a capacity market, Bulgaria on EU funds, the Netherlands pursues a merchant approach, and Spain a hybrid model.
Six measures for a Battery Storage Action Plan
The association proposes six measures for a Battery Storage Action Plan: easier retrofitting of existing solar installations with batteries, grid tariffs that reflect the system value of storage and avoid double charging, electricity markets that remunerate all services, an industrial policy, safety and quality standards, and a circular economy policy.
A key point is the remuneration of grid services. To date, most system services such as frequency control, voltage regulation, inertia, black start and congestion management are not remunerated. Internationally, only the United Kingdom so far combines all five ancillary services with a capacity and wholesale market. Germany has now introduced a market for inertia, while the Netherlands is working on congestion management.
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Arruebo addressed four recommendations to the European Commission: market-based procedures for grid stability services, harmonised EU standards and certification procedures, greater transparency and coordination between grid operators, developers and regulators, and support for studies and demonstration projects. A new platform, Battery Storage Europe, has been set up to speak for the sector in Brussels, uniting the solar and storage industries behind a common agenda. (nhp)
