Falling Module Prices Trigger 13% Drop In EU Solar Investments: Report

SolarPower Europe’s latest report highlights the addition of 65.5 GW of solar capacity in the region. Despite a yearly growth of 4.4%, this year’s growth marks the lowest market growth since 2017. However, the slowdown was anticipated following the exceptional surge in 2022 and 2023. The growth during that period was largely driven by soaring energy prices during the energy crisis.

The European Union solar market also experienced a 13% reduction in capital investments, which fell to EUR 55 billion compared to 2023. Record-low PV prices, coupled with the slowdown in market growth in 2024, significantly contributed to this decline.

The report attributes the decline to record-low PV equipment prices, combined with a sharp slowdown in annual market growth in 2024. These factors led to a 13% decrease in capital investments, which dropped to less than EUR 55 billion relative to 2023. In 2024, the landscape changed dramatically as module prices in European wholesale markets plummeted to new lows, decreasing on average by 35% from January to November 2024. Additionally, lower prices for balance-of-system (BOS) products and installation costs caused a 2% and 28% decrease in average rooftop and ground-mounted PV system CAPEX, respectively.