Small-Scale Solar Trends in Europe 2025
2025 has been a transformative year for Europe’s solar sector, particularly in the small-scale rooftop and distributed PV markets across the EU-27. Despite wider predictions of stagnation, small-scale solar installations defied expectations, driving a dynamic shift in investment and uptake across households and businesses. Data from the International Energy Agency PVPS Snapshot highlights 71.4 GW installed across Europe in 2024, with small-scale projects comprising a significant share—fuelled by policy support and attractive economics.
EU Solar Investment Surges 63 Percent
Year-on-year, EU-27 investment in solar PV climbed by a dramatic 63%, marking a new record for European clean energy finance. Much of this boost originated in distributed PV, where falling panel prices and local incentives have made entry more accessible for homeowners and small businesses. Solar’s meteoric rise has positioned it as the backbone of Europe’s decarbonisation plans, bringing the continent closer to its interim REPowerEU target of 400 GW installed solar capacity.
What Drove Growth in Small-Scale Rooftop Solar?
The surprise spike in small-scale solar can be traced to several factors:
- High energy prices: The aftereffects of the energy crisis from 2022 continued to encourage rooftop installations while households and SMEs sought energy self-reliance.
- Incentives and government frameworks: Several EU states enhanced net metering, grants, and tax rebates, which disproportionately benefited small PV projects even as national schemes for large-scale solar shifted toward auctions.
- Technological evolution: Batteries and hybrid inverters paired with PV have become widely available, allowing customers to maximise self-consumption, especially in high-renewable markets like Germany, the Netherlands, and Spain.
- Decarbonisation policy: Commitment to climate targets and public demand for sustainable solutions helped drive distributed energy investment.
Germany has been the clear leader in Europe’s solar push, installing 16.7 GW in 2024, almost half attributable to small-scale systems. The Netherlands, Austria, Belgium, Spain, and Italy also reported substantial increases in small solar uptake following regulatory reforms. Several regions saw triple-digit growth in installations compared with 2023, with new local incentives targeting self-consumption, battery pairing, and outside-the-grid energy production.
Utility-Scale Solar Slows While Distributed PV Soars
While small-scale solar thrived, utility-scale installations faced challenges due to flattened demand and changes to support frameworks, resulting in a predicted 1.4% drop in overall new EU solar capacity for the first time in a decade. Auctions for utility-scale solar remained robust, but small rooftop and SME installations propped up overall project numbers and kept many states ahead of their EU 2025 renewable targets.
Key figures:
- 71 GW total new European solar (2024)
- 63% year-on-year investment spike in EU-27 small-scale PV
- Small-scale share exceeded 45% in several key markets
Market Challenges and Future Outlook
Challenges have arisen within formerly strong rooftop solar nations, such as Italy, Belgium, Hungary, and the Netherlands, as legacy incentive schemes ended without immediate replacements. Nonetheless, the transition to storage-inclusive solar, flexible net-metering, and new grant programmes is expected to invigorate small scale further through 2026.
The EU will need to install 70 GW annually to stay on track for its 2030 target of 750 GW total solar, but current predictions expect 723 GW by 2030 unless small-scale momentum continues unabated.
The Economic Impact of Small-Scale Solar
A 63% increase in investment powered by rooftop PV and distributed systems has generated new jobs, boosted home values, and helped reduce over €59 billion in coal and gas import costs since 2019. Increased local generation helped buffer homeowners from volatility, saved on electricity bills, and supported community energy projects across the region.
Opportunities for UK and European Customers
With competitive costs and growing self-consumption technologies, Atlantic Renewables can help domestic and business customers in Britain and Europe benefit from the small-scale solar boom. Panels, batteries, and tailored support from expert engineers put clean energy at customers’ fingertips—whether for rooftop, home, or commercial sites.
Get in Touch
Ready to join Europe’s small-scale solar revolution and lock in energy savings for years to come? Contact Atlantic Renewables today for expert advice, project planning, or to discuss the latest rooftop PV and battery solutions. Call 0161 207 4044 and put the power of clean energy in your own hands!
