European Solar Industry Faces Growth Challenges

The growth of solar power installations in the EU has dramatically slowed to just 4% in 2024, raising concerns about meeting ambitious renewable energy targets, according to SolarPower Europe. With 65.5 GW installed this year, the EU still faces grid bottlenecks that hinder further expansion, necessitating 70 GW annually to reach 2030 goals. Concurrently, the European Solar Manufacturing Coalition (ESMC) has called for enhanced support for domestic solar manufacturing through the New Industrial Strategy for Europe (NZIA) and proposed measures to strengthen the industrial framework, including favorable financing for projects using European products. The ESMC's recommendations include criteria for public funding to prioritize resilience and sustainability, as well as differentiated interest rates to enhance competitiveness against foreign manufacturers. Meanwhile, SolarPower Europe's new report highlights the solar sector's commitment to sustainability and ESG goals, emphasizing the need for long-term viability across its value chain. The combination of these developments indicates a critical period for Europe's solar industry amid growing challenges and the need for strategic policy adjustments.