The past year has been dynamic for the European solar industry. While solar remains essential to Europe’s energy transition, 2024 brought its share of challenges. From shifts in availability to evolving markets and policy changes, it was a year of adaptation and learning for everyone in the industry. In this blog, Hans Ekelmans, PVO International’s Commercial Director, reviews key developments of 2024 and offers insights into what we can expect in 2025.
Demand for solar remains steady
The European solar market has grown significantly in recent years. In 2024, 65.5 GW of solar capacity was installed across the EU—a new record, though growth slowed to just 4% compared to the impressive 50% increase in 2023 and 2022.1 This reflects a shift in the market with supply chain constraints and regional saturation impacting growth.
Despite challenges, the need for solar energy remains strong. With the EU requiring 70 GW of new capacity annually to meet 2030 climate targets, renewable energy remains vital to Europe’s transition2. While 2025 elections may bring changes, the need to decarbonize the energy sector remains critical.
The international solar supply chain has played a crucial role in shaping European trends over the past year. In China, a reduction in export tax rebates for photovoltaic products, effective December 2024, has prompted solar manufacturers to adjust their strategies. The rebate reduction from 13% to 9% is expected to lead to a modest price increase, which may slightly impact costs for European buyers3. Further reduction to phase out the rebate is expected.
However, Chinese solar modules are expected to remain highly competitive in the global market. Chinese manufacturers are collaborating to address overcapacity and stabilize pricing, creating a new balance in material availability compared to last year. These developments highlight the importance of resilient and adaptable supply chains to navigate evolving international markets.
Within the transition to renewable energy an increasing focus on energy storage on all project levels is seen. In the Netherlands, the phase-out of the salderingsregeling (net metering scheme), set to conclude in 2027, is expected to vastly increase interest in home battery systems4.
In the C&I sector, storage technology developments are helping to address grid stability challenges and enable more efficient use of renewable energy. Therefore PVO International has strategically partnered with Huawei in 2024, offering advanced energy storage solutions for residential, C&I, and utility, supporting our partners in large scale battery projects.
In Germany, the Renewable Energy Sources Act (EEG) continues to support the energy transition, with a target to cover at least 80% of electricity consumption with renewables by 2030. The EEG, with the introduction of Solar Package 1 2024, has significantly streamlined the construction and operation of photovoltaic systems. The increase in feed-in tariffs for larger installations and the relaxation of direct marketing requirements for smaller systems motivate both individuals and companies to invest in solar technology. Additionally, the new regulations, such as the doubling of inverter capacity and simplified grid connection rules, enhance installation flexibility. For providers of solar solutions, this presents an opportunity to expand their offerings with more powerful modules and more efficient energy management systems to meet market demands. These changes are expected to lead to increased demand for modern storage solutions and integrated photovoltaic systems, which are crucial for a sustainable energy future. By 2025, these adjustments in the EEG are likely to have catalyzed significant advancements in Germany’s renewable energy landscape.
Besides broader market developments, regulatory shifts in Europe are changing standards for ethical and sustainable solar practices. The European Union has introduced regulations to enhance transparency and accountability, focusing on Environmental, Social, and Governance (ESG). These measures aim to eliminate unethical practices, such as forced labor in global supply chains, particularly concerning critical materials like polysilicon. At PVO International, we ensure current and future compliance through our ESG & Traceability Promise, providing peace of mind for your solar projects now and in the future.
At PVO International, we believe that knowledge sharing is key to building not just successful projects but lasting partnerships. Being part of DCC Energy provides us with a solid foundation to remain forward-thinking, drive strategic growth, and build meaningful, long-term collaborations with our partners. This foundation ensures we remain a reliable, future-focused partner for your solar projects in 2025 and beyond.
The PVO Utility Partner Power Tour demonstrated this commitment. By connecting partners with leading suppliers, we shared insights into cutting-edge technologies and strengthened the foundation for better, future-proof solar solutions.
As we move into 2025, this focus on shared knowledge and collaboration remains at the core of our strategy. With Tier-1 solutions, a strong ESG promise, and tailored support, we’re here to empower your solar projects and drive the power to change the world.
Curious how we can power your solar projects in 2025? Contact us today.
1 EU solar installations hit 65.5 GW in 2024, says SolarPower Europe – pv magazine International
2 EU solar growth slows, raising fears for energy transition | Reuters
3 Chinese exporters to hike prices, renegotiate contracts after tax rebate cuts, sources say | Reuters
