EU Solar Hits Record 406 GW, Powers 47% of Grid

Europe just proved that the clean energy transition isn't just possible—it's happening faster than anyone predicted.

Solar power became the European Union's largest electricity source for the first time in June 2025, marking a historic turning point in how an entire continent powers itself. Renewable energy now accounts for nearly half of all electricity consumed across the EU, with solar contributing almost a quarter of that share.

The numbers tell a story of remarkable momentum. Solar capacity reached 406 gigawatts in 2025, jumping from 338 gigawatts the previous year. That comfortably exceeded the 380 gigawatt target set under the EU Solar Energy Strategy launched just three years ago in 2022.

What's driving this surge? Technology costs have plummeted, making solar one of the most competitive electricity sources across European regions. Rooftops across the continent are transforming into power stations, with 11 million now equipped with solar thermal systems and storage.

Residents in several EU countries can now install small plug-in solar panels on balconies, terraces, and walls. Excess electricity gets stored in batteries, shared within local energy communities, or sold back to the grid, meaning households actually profit from their installations.

The Ripple Effect

The solar boom is reshaping Europe's economy in ways that extend far beyond electricity bills. Around 764,400 people now work in the EU's solar photovoltaic sector alone, representing more than 10 percent of the global solar workforce. Solar heating, cooling, and concentrated solar power add another 24,000 jobs.

Industries are getting in on the action too. Solar thermal systems now provide clean heat for agri-food processing, paper manufacturing, beverage production, and flower growing. The EU manufactures about 90 percent of its solar thermal technology domestically, strengthening energy independence while creating skilled jobs.

Germany leads the bloc in installed solar thermal capacity, followed by Greece and Italy. But the benefits reach every corner of Europe, as decentralized solar power combined with storage solutions keeps electricity flowing during nighttime hours and grid disruptions.

Policymakers view solar as critical to achieving climate neutrality by 2050 while lowering electricity prices and improving economic competitiveness. As a locally produced, abundant resource, it strengthens energy security in an uncertain world.

The transformation happened in less than a decade, proving that ambitious climate targets aren't just achievable—they're conservative estimates when technology, policy, and public support align.