Solar protects Europe from rising prices and foreign dependence

Thanks to solar energy, Europe saved more than €30 billion in avoided gas imports during the first six months since the start of the war in Iran. According to data from SolarPower Europe, the biggest savings came during the summer, when more solar power was available and fossil fuel prices increased.

Europe's abundant renewable energy resources are not immune to the damaging effects of climate change. This summer's heatwaves and drought reduced the efficiency of some thermal power plants and, in some cases, forced them to shut down.

Lower reservoir levels reduced hydropower generation, while low levels of cooling water affected nuclear power production. At the same time, extreme heat drove electricity consumption higher as demand for air conditioning increased. As a result, energy prices rose, placing additional pressure on European households and businesses.


Solar power offers some relief from these pressures


Walburga Hemetsberger, CEO of SolarPower Europe, said: “Solar has been delivering enormous financial benefits to Europe since the start of the latest fossil fuel crisis in the Middle East. The war in Iran has worsened the turmoil in energy markets caused by Russia's invasion of Ukraine. Continuing to depend on oil and gas supplies is clearly a risky energy strategy. Gas pipelines, oil pipelines and shipping routes have repeatedly proved vulnerable. This is not a hole the fossil fuel sector can pull us out of. The solution is above our heads, and Europe must seize it with both hands.”

In 2025, IRENA and the European Commission launched the first EU Regional Energy Transition Outlook, projecting that renewables will provide 70% of the European Union's electricity by 2030 and almost 90% by 2050. Achieving this vision will require annual investment of around €220 billion, for a total of €5.6 trillion by 2050.


Where solar energy in Europe stands today


According to the Global Solar Market Outlook 2026-2030, published by SolarPower Europe in June, Europe's total cumulative solar capacity reached 493 GW at the end of 2025, up from 411 GW in 2024. This represents 17% of total global capacity.

Europe installed 81.6 GW of new solar capacity in 2025, an increase of 3% compared with 2024, making it the world's second-largest region for new installations after Asia-Pacific.

If the EU were considered a single market, it would rank second globally behind China. In terms of solar capacity per capita, the European regional average reached 581 watts at the end of 2025, confirming Europe as the world's most mature region for solar energy penetration.

For African energy markets, where reducing exposure to imported fossil fuels is also an important policy consideration in many countries, Europe's experience highlights the role that domestic renewable resources can play in energy systems.


Solar energy in Italy


Italy's performance is less impressive. Total cumulative solar capacity stood at 42.4 GW at the end of 2025, placing the country ninth globally and fourth in Europe behind Germany, Spain and France.

Italy's share of global solar capacity remains low compared with its available resources. The country accounts for just 1% of global solar capacity.

During 2025, Italy added 6.4 GW, representing year-on-year growth of 5% compared with 6.1 GW in 2024. Looking at individual market segments, rooftop solar, including residential and commercial and industrial installations, accounted for 53%, while utility-scale projects represented the remaining 47%.

For 2026, new installations are expected to grow by 5%, reaching an estimated 6.7 GW.


What is happening in Europe's leading countries for solar capacity


Germany remains Europe's largest solar energy market and ranks among the global leaders for installed capacity, both in absolute and per-capita terms.
In 2025, Germany installed 17.4 GW of new solar capacity, exactly the same amount as in 2024, ranking fourth globally and overtaking Brazil. By the end of 2025, cumulative solar capacity had reached 118 GW.
Per-capita capacity reached 1,403 watts per person, the third-highest level worldwide. The market is evenly divided between rooftop installations, which account for 50% across the residential and commercial segments, and utility-scale projects, which make up the other 50%.
Residential demand softened, while growth was supported by the commercial and industrial segment, partly due to simplifications introduced through Solarpaket I. In 2026, new installations are expected to decline by 5% to an estimated 16.5 GW.

Spain recorded a significant recovery in 2025, although it continues to face growing structural challenges related to grid integration.
The country installed 11.3 GW of new solar capacity in 2025, up 22% from 9.3 GW in 2024, placing Spain sixth globally and second in Europe.
New installations are expected to fall from 11.3 GW in 2025 to around 9.7 GW in 2026 due to several challenges: grid saturation, curtailment during periods of peak solar generation and declining project profitability caused by lower electricity prices during the middle of the day.

France maintained steady growth in 2025, with a market structure that contrasts with Spain's.
France added 6.9 GW of new solar capacity in 2025, an increase of 23% from 5.6 GW in 2024, moving into eighth place globally. Total operating solar capacity reached 34.0 GW by the end of 2025.
Unlike Spain, rooftop installations lead the French market, accounting for 74% of the total, particularly in the commercial and industrial segment. Large ground-mounted projects account for the remaining 26%, as development has been slowed by complex permitting procedures and constraints on land availability.
Solar installations are expected to decline by 18% in 2026 to around 5.6 GW due to the reduction of targets in France's national energy plan.



This article was realized in collaboration with Rinnovabili.