Europe Solar PV Market Size

Europe Solar PV Market Size

Europe Solar PV Market was valued at USD 63.1 billion in 2024 and is estimated to grow at a CAGR of 7% from 2025 to 2034. Solar PV systems generally comprise solar panels embedded with multiple photovoltaic cells, an inverter that transforms direct current (DC) electricity into alternating current (AC) for household or industrial applications, and occasionally, energy storage solutions like batteries.

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Many countries offer incentives for residential and commercial solar installations, including rebates, grants, or tax credits coupled with combining solar power with hydrogen production, that uses solar-generated electricity to produce hydrogen for industrial use will drive the business scenario. The price of solar PV modules has decreased significantly over the past decade, with the cost of solar power falling below grid parity in many parts of Europe, thereby increasing the market competitiveness, as both established and new players compete for market share.
 

Large scale investments in solar systems to fulfill the energy needs in countries across Germany, UK, and France among others along with expanding residential installations fueled by government incentives and declining costs of solar panels and batteries will complement the business landscape. The EU Emissions Trading Scheme (ETS) helps make solar power more cost-competitive relative to fossil fuels by putting a price on carbon emissions, influencing the product penetration.