Europe Solar PV Market Opportunity, Growth Drivers, Industry Trend Analysis, and Forecast 2025 - 2034

Europe Solar PV Market reached USD 63.1 billion in 2024 and is estimated to expand at a CAGR of 7% from 2025 to 2034. Solar PV systems consist of solar panels containing photovoltaic cells, an inverter to convert direct current (DC) to alternating current (AC), and often energy storage solutions like batteries.

Government incentives for both residential and commercial solar installations are a key driver of growth in the market. These incentives often include tax credits, grants, and rebates, making solar power more accessible. In addition, combining solar energy with hydrogen production, where solar power generates electricity for hydrogen production used in various industries, is expected to further enhance the market's prospects. The cost of solar modules has dropped significantly over the past decade, making solar energy more competitive, as prices now often fall below the cost of grid electricity in several regions of Europe.

Large investments in solar systems are being made across multiple European countries to meet growing energy demands. Alongside this, a rise in residential solar installations, spurred by falling costs and government-backed incentives, is expanding the market. The European Union's Emissions Trading Scheme (ETS) has also played a role in making solar power more affordable by imposing a price on carbon emissions, thus driving solar energy adoption.

The on-grid segment, expected to exceed USD 122 billion by 2034, is particularly noteworthy. Features such as advanced monitoring, remote control, and grid balancing are boosting the appeal of on-grid systems. Additionally, ongoing research and development efforts are focused on improving the efficiency and durability of solar PV materials. Innovations like perovskite solar cells and flexible solar panels are further contributing to the market growth. Increased awareness of climate change and a strong commitment to environmental sustainability are also motivating both consumers and businesses to embrace renewable energy sources.

The ground-mounted segment of the market is anticipated to grow at a robust rate of over 7% annually through 2034. Advances in solar panel technology, such as increased efficiency and durability, are making ground-mounted installations more cost-effective. These installations are also being integrated with energy storage systems, providing greater grid stability and energy independence. As demand for large-scale solar farms rises, the economic and environmental benefits of ground-mounted solar systems are expected to drive further market expansion.

In conclusion, the European Solar PV market is positioned for substantial growth, fueled by technological innovations, government support, and increasing consumer demand for cleaner energy solutions.