Over the past three years, the EU’s solar capacity has been increased twofold. What role did subsidies play in making this achievable, which forms of assistance remain accessible, and what further steps are necessary?
In Marbella along Spain’s Costa del Sol, the rooftop of Jesus Miguel Vera Lopez’ house is adorned with solar panels. He stated, “Like everybody else, I installed them to reduce my electricity costs.”
This isn’t just happening in Spain. Corinna Gutmann, who leases an apartment in the west German city of Bonn, has set up solar panels on her balcony. Her system is among more than a million registered installations across Germany in 2024.
She mentioned to Candraokey News that she had been wanting this on her balcony since approximately 2013. However, at that time, the procedure was far more complicated. She noted significant improvements have occurred since then.
She and Vera Lopez are among the many contributing to a global rise in solar adoption, which is notably prominent in Asia and Europe.
The surge in Europe’s use of solar power is fueled by the European Union, committed to achieving net-zero emissions by 2050. The adoption of renewable energy was central to their strategy; however, the energy crisis initiated following Russia's invasion of Ukraine in 2022 prompted the EU to accelerate plans for extensive and swift implementation of renewables as part of an effort to reduce dependency on Russian hydrocarbons.
According to the European Union Commission’s 2022 Solar Energy Strategy, solar power will play a pivotal role in this initiative. “Step by step, through each panel installed, the limitless energy from the sun will assist us in decreasing reliance on non-renewable resources.”
In collaboration with the European Data Journalism Network, Candraokey News has examined the ways in which Europe’s governments are aiding the growth of solar energy across the continent.
Why has solar energy gained such widespread popularity so rapidly?
Currently, various European Union nations have an average capacity of about one kilowatt per individual, which is approximately equivalent to two solar panels. The Netherlands tops this list with 1.4 kilowatts per person, trailed by Germany at 1.2 kilowatts per person.
"In the mid-2000s, we saw the initial surge in solar energy adoption," stated Raffaele Rossi, who leads market analysis at Solar Power Europe, an organization representing the sector. He added that governments began implementing feed-in tariffs, which compensate individuals for feeding excess electricity back into the power grid. Consequently, this led to significant expansion in early adopter nations such as Germany, Greece, Belgium, Spain, Italy, and France.
Nevertheless, the substantial expense of solar technology deterred most homeowners, according to Rossi. However, over the ensuing years, significant advancements have reduced worldwide installation expenses by approximately 90%.
Owing to the extra impetus from the worldwide energy crisis, the European Union's solar power capacity has doubled just between 2021 and 2024.
The solar industry is poised to surpass the European Union countries' 2030 solar objectives. According to an analysis conducted by Solar Power Europe, only three member states might not achieve these benchmarks, whereas twenty others are expected to hit or even outperform their respective targets prior to 2030.
Residential installations on small scales, such as those found on balconies and rooftops, are playing a significant role in this transformation, making up one-fourth of the total photovoltaic capacity within the European Union.
Although costs have decreased, investing in solar energy still demands significant initial expenditure. Corinna Gutmann’s balcony installation set her back €650 (approximately $680), whereas Jesus Vera Lopez’ rooftop system came with a hefty price tag of €6,000.
"Making this investment pays off," remarked Vera Lopez, noting her electricity expenses dropped dramatically from over €100 down to just €15 monthly. According to a 2023 report published by SolarPower Europe, households in countries such as Germany, Italy, and Spain stand to cut their annual utility costs by more than €1,000 after adopting solar panel technology.
Enabling everyone to access solar power effectively
The upfront expenses may be too high for many people. "Our priority should be supporting vulnerable, low-income families," stated Seda Orhan, who works as the Renewable Energy Manager at Climate Action Network Europe, an organization made up of various NGOs pushing for environmentally friendly climate and energy strategies. "They are often left out when it comes to participating in the shift towards renewable energy sources."
The European Union is encouraging its member countries to assist their citizens in making this transition by simplifying rules and offering financial aid, particularly for those with lower incomes. Different nations are addressing this matter through varying methods.
Where residents pay lower prices for solar
Several European nations, such as Germany, have lowered Value Added Tax (VAT) rates on both the purchase and setup of solar panels. As a consequence, this will lead to an immediate decrease in costs for buyers rather than reimbursement schemes that may involve intricate paperwork procedures.
Throughout Europe, governments likewise provide direct financial support to individuals who invest in solar energy; however, the sums and terms differ significantly from one another.
Hungary leads by offering substantial subsidies, covering up to sixty percent of the expenses related to residential solar panels, under certain conditions and upon commitment to integrating energy storage systems. In contrast, Sweden employs a distinct strategy through its "Grön Teknik" initiative, providing a twenty-percent reimbursement with very little required documentation.
For Gutmann, fitting solar panels onto her balcony in Bonn turned out to be unexpectedly budget-friendly. The local government subsidized nearly half of the expenses—€300—through an uncomplicated procedure. She explained to Candraokey News, “All I needed was to complete a brief application, submit my receipt along with a photo of the balcony, and I got the funds back within just two weeks.” Gutmann added confidently, "The investment will recoup itself in about two years."
Regional grants frequently more substantial
Although German tenants have access to these programs, many European nations restrict their assistance primarily to homeowners such as Vera Lopez.
He applied for the Andalusian regional initiative Plan Eco Vivienda, set to conclude in December 2024. His aim is to receive a reimbursement covering 40% of his expenses; however, his submission hasn’t been approved as of now. Navigating through this process was challenging for him: “My educational background isn’t extensive, so some requirements were confusing,” he explained.
The subsidy program in Spain is notably intricate with stringent criteria and often faces significant backlogs. As stated by CAN’s Seda Orhan, “Despite funds being set aside, fewer than fifty percent of the applied-for solar subsidies have been disbursed within two years.” Nonetheless, Spain provides among the highest potential payout amounts in Europe for costly rooftop setups.
Favorable loans and tax incentives
Numerous governments and banking institutions provide low-interest loans specifically for solar panel setups, and the Wallonia region of Belgium goes further by offering interest-free financing for those with lower incomes.
Moreover, property owners in Spain and Italy can benefit from substantial income tax reductions related to their solar panel installations. In contrast, Germany and Sweden offer lower taxation rates on the electricity that is fed back into the power grid.
A comprehensive summary of the solar subsidies recognized in this analysis is available within this database.
Doubt regarding upcoming assistance initiatives
Chandrayanews' analysis revealed multiple solar incentives nearing their expiry, with some having already concluded. Seda Orhan highlights the ambiguity around forthcoming EU financing. The current Multiannual Financial Framework of the EU concludes in 2027, and discussions for a fresh budgetary plan are only starting. “Securing a robust EU budget will be essential,” stated Orhan. “Only then can we determine its allocation.”
Certain administrations are beginning to advocate for eliminating subsidies entirely, according to market specialist Raffaelle Rossi in an interview with Candraokey News. "Under suitable circumstances, direct subsidies could potentially be decreased; however, such measures must be implemented cautiously," he noted. Rossi added that negative reactions from the marketplace have been observed due to subsidy reductions. He emphasized that these supports continue to be crucially beneficial for lower-income families specifically.
"Sustaining backing for solar energy remains crucial," noted Seda Orhan. Additionally, she highlights the economic benefits associated with this sector. The solar industry currently provides jobs to over 800,000 individuals within the European Union, primarily through localized installations—offering tangible economic gains to administrations that uphold funding initiatives.
The expansion of solar power relies on dependable infrastructure.
Even with uncertain subsidies, Solar Power Europe anticipates that the region’s capacity will double again in the European Union prior to 2030. Residential rooftop systems continue to dominate but are being increasingly matched by bigger projects.
Achieving success depends on establishing a strong solar infrastructure. As outlined in the EU’s Solar Energy Strategy, this involves training an adequate number of workers for manufacturing, installing, and maintaining solar power systems, along with upgrading Europe's electrical grid to accommodate the increase in localized energy generation from these installations.
Rossi also highlights that energy storage solutions are crucial. These systems enable power to be utilized near its point of generation, thereby alleviating strain on the overall grid infrastructure.
For Corinna Gutmann, her balcony solar installation has proven worthwhile. She commented, "Seeing more solar panels around the neighborhood piques curiosity among others." According to her, "It seems somewhat contagious. Plus, initiating such a project has become considerably simpler nowadays."
Sofia Kleftaki, Zsolt Bogar, Michal Gostkiewicz, and Emmy Sasiporkarn provided research assistance for this investigation.
Edited by: Gianna Grün, Tamsin Walker
Additional details about the data, methodology, and code for this story are available in this repository.
Additional data-driven stories can be explored here.
This initiative is a joint effort involving multiple media organizations within the European Data Journalism Network. Although Candraokey News took the helm as the project leader, the Center for Investigative Journalism in Serbia and El Orden Mundial also played significant roles as collaborating partners.
Author: Kira Schacht