Solar Generation Records Drive European Power Prices Down
European solar energy generation has surged to record highs in 2025, fundamentally shaping energy prices across the continent. In March 2025, solar accounted for 10.75% of the EU electricity mix, delivering 24.1TWh and marking one of the highest March shares on record. This momentum carried through to June 2025, when solar became the largest single source of EU electricity, generating 22.1% (45.4TWh), surpassing both nuclear and wind for the first time.
These unprecedented output levels dramatically reduced energy prices. For example, electricity prices fell from €126/MWh in February to €90/MWh in March 2025, catalysed by sunny conditions and rapid solar deployment.
If you want to save on rising energy costs and join millions benefitting from the solar revolution, Atlantic Renewables’ team of experts can help you harness this opportunity today.
How Solar Boom Is Pushing Down Wholesale Electricity Costs
Wholesale electricity prices across Europe closely track the growth of renewables—especially solar. According to an IMF study analysing 24 European markets, increasing the share of renewable electricity by just 1% results in a 0.6% reduction in wholesale prices. Thus, increasing the renewable share from 14% to 30% could lower wholesale prices by up to 8.8%, and reaching 50% renewables could bring reductions close to 20%. Notably, the study found solar energy even more effective than wind at reducing both the level and volatility of wholesale prices.
In spring 2025, as solar set new records in France, Italy, and Germany (generating 135GWh, 150GWh, and 397GWh respectively in a single day), average wholesale electricity prices dropped below €65/MWh across nearly all major markets. Spain and Portugal recorded the lowest averages, at just €15.36/MWh and €16.50/MWh.
Are Record Solar Installations Set to Continue in Europe
The expansion is not slowing down. In 2024, the EU’s total installed solar PV capacity reached 338GW, surpassing annual installation targets and positioning the bloc to meet its REPowerEU solar target of 400GW by 2025. Experts project a more than doubling of capacity to at least 671GW by 2028, with 64GW added in a single year by 27 EU member states.
This aggressive growth is underpinned by strong policy support, ongoing technological advances, and robust market economics—factors that Atlantic Renewables leverages to deliver cutting-edge solar solutions for commercial and residential clients across the UK.
Why Solar Generation Is Leading To More Negative Power Prices
While falling prices are a boon for consumers, they introduce new dynamics to the market. The sharp rise in solar output, coupled with limited storage and grid flexibility, has led to a record number of ‘negative price hours’—periods when excess production forces market prices below zero. In the first half of 2025, countries like Sweden, Spain, Netherlands, Germany, and France saw over 300 hours of negative prices, with Spain experiencing up to 459 hours.
This phenomenon reflects both the success and growing pains of the transition. It points to the urgent need for more storage solutions—a transformation Atlantic Renewables is at the forefront of, helping mitigate curtailment and capture greater value from every sunlit hour.
How Solar Output Reduces Energy Price Volatility
Analysts highlight that increased solar generation not only lowers average prices but also reduces their volatility. Solar’s predictable daytime output helps smooth price spikes, easing the risk for businesses and utilities alike. As a result, the energy market becomes more resilient to external shocks—from fuel supply crises to geopolitical tension.
If you’re a business aiming to shield your operations from unpredictable energy costs, our engineers at Atlantic Renewables specialise in tailored solar and battery storage systems that deliver energy security and savings.
How Does Europe Compare Globally On Solar Price Impact
Europe’s leadership in solar deployment has made it a test case for worldwide energy markets. While global solar installations reached a stunning 600GW in 2024, the level of price impact seen in Europe is unmatched due to the region’s integrated grid and robust policy frameworks.
This places European consumers and businesses ahead in reaping the price benefits of renewables — a model now being studied and emulated globally.
Why The Solar Trend Means Long Term Consumer Savings
Record solar generation has set a new baseline for energy prices across Europe. While wholesale rates fluctuate, the consistent downward pressure from renewables is expected to anchor average prices significantly lower than in the fossil-dependent past. Households and businesses that invest in solar are locking in decades of savings—and those who add battery storage stand to gain even more from shifting prices and grid dynamics. Atlantic Renewables can help you make this financial leap forward.
What Are The Barriers To Solar Energy Lowering Prices Even More
Despite the positive price trend, challenges remain. Grid congestion, inadequate storage capacity, and slow regulatory adaptation can dampen the benefits of solar surges. Market design reforms—such as improved demand response and smarter networks—are needed to maximise the downward effect on energy prices and allow renewables’ full integration. Atlantic Renewables stays abreast of these trends to ensure clients always benefit from advanced, future-proof solutions.
Get in touch
Whether you’re ready to install a solar PV system or looking to add battery storage to maximise the savings from negative price hours, Atlantic Renewables’ expert engineers are here to help. Contact us on 0161 207 4044 and discover how you can benefit from Europe’s solar-powered price revolution today!
