EU Installs 33.8 GW of Solar in First Half of 2026

The European Union installed at least 33.8 gigawatts of new solar capacity between January and June 2026. This figure, from SolarPower Europe's EU Solar Market Update 2026: Mid-Year Analysis, represents a 1.9% increase compared to the 33.2 GW deployed in the first half of 2025.

This result exceeded late-2025 forecasts that had predicted a market contraction. Demand proved resilient despite worsening market conditions, partly supported by renewed concerns over fossil fuel supplies linked to the Middle East conflict. Higher energy prices and energy security concerns strengthened the economic case for solar across several member states.

Germany and Spain, the EU's two largest markets, maintained high installation levels. France, Italy, Poland, Romania, and Greece recorded slight year-on-year growth. Some smaller markets, like Finland and Latvia, experienced rapid expansion driven by large-scale project commissioning.

Conversely, the Netherlands, Czechia, Belgium, and Hungary fell short of their 2025 installation levels. The market structure is not expected to change significantly in 2026.

Within the rooftop segment, residential demand weakened in several markets. The commercial and industrial segment demonstrated greater resilience.

Solar's Role in Energy Security

Beyond capacity growth, solar generation is playing an increasingly strategic role. In the six months following the escalation of the Middle East conflict starting March 1, EU solar generation is estimated to have avoided around €30 billion in gas import costs for electricity. This equates to more than €1 billion per week.

Photovoltaics met over 20% of the EU's electricity demand in May, June, and July. It reached a record 25% in June, becoming the Union's primary source of electricity generation for that month. High solar output also helped meet increased cooling demand during summer heatwaves. During these months, high river temperatures and low water levels limited nuclear and hydroelectric power availability.

SolarPower Europe states these factors are reshaping photovoltaics' role. "In addition to being a key technology for decarbonization, solar power is establishing itself as an energy security asset capable of reducing Europe’s exposure to fossil fuel imports," the association explains.

Grid and Market Bottlenecks

The rapid growth of photovoltaics is highlighting limitations in Europe's electricity infrastructure. Rising renewable energy curtailment, falling solar capture prices, episodes of negative pricing, and increased price spikes during evening hours all indicate that grids, storage, and other flexibility mechanisms are not keeping pace.

"Without a faster rollout of these technologies, Europe risks wasting an increasing share of low-cost solar electricity during the middle of the day and subsequently remaining dependent on expensive fossil-fuel generation when solar output drops," the report states.

Improved Annual Outlook

The outlook for full-year 2026 installations has improved substantially. SolarPower Europe's central scenario now projects 68.1 GW of new solar capacity across the EU this year. This is 6.6 GW above its December 2025 forecast and just 2.1% below the revised 2025 record of 69.6 GW.

Uncertainty remains high. The association's scenarios provide a wide range of potential outcomes.

The final figure will depend on second-half market developments and potential revisions to preliminary data. Reduced policy support in several member states, growing regulatory uncertainty, and grid constraints continue to pose structural risks to market growth.