Solar subsidies in Europe

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In the last three years, the European Union as a whole doubled its solar capacity through a wide range of subsidies and supports for those who decide to switch to solar energy. In the EU, the solar boom is mainly driven by the goal to become climate-neutral by 2050, an objective that needs a major deployment of renewable energy to be reached. This goal was strengthened even more after the Russian invasion of Ukraine, which forced European countries to find alternatives to Russian fossil fuels.

An EDJNet investigation led by Deutsche Welle analyzed how European governments support the solar power expansion in the continent, and the possible future developments for renewable energies in Europe.

Main findings:

  • Today, several EU countries host a capacity of around a kilowatt per person. The leading countries are the Netherlands and Germany, but the increase in EU solar capacity is a general phenomenon that will likely result in all but three EU members reaching their solar targets by 2030 or even before.
  • A quarter of all EU solar capacity derives from small-scale residential installations on balconies and rooftops. This depends mainly on the drop in the prices that private citizens have to face when they decide to go solar. Even though this can become a profitable investment, not everyone can afford the initial cost.
  • At least nine European countries have reduced VAT rates on solar panel sales and installation with the scope of directly reduce prices for consumers instead of reimbursing them afterwards, which can end up in complex application processes that discourage people from even starting them. Some possibilities include subsidies, rebates, and reductions in paperwork, as well as tax deductions and low-interest loans.
  • Not all countries, however, offer the same level of support to homeowners willing to go solar. Spain, for example, has a subsidy system characterized by complex requirements and long delays.
  • Another potential problem is the uncertainty about future EU funding. Supporting solar power is not only crucial in terms of climate action, but also because this sector has significant economic potential, as it already employs more than 800.000 people in the EU.

Stories

  • Faced with the requirements of the Energy Community, Serbia is encouraging investors and citizens to invest in renewable energy sources, and one way to get electricity is through solar panels on houses. See where citizens have installed panels on their homes.

    March 31, 2025

  • The EU has doubled its solar capacity in the last 3 years. DW and the European Data Journalism Network have analyzed how subsidies made this possible, what supports are still available, and what still needs to happen.

    February 26, 2025

The data unit

Kira Schacht (Deutsche Welle, coordinator)
is a data journalist at Deutsche Welle. She studied data-driven journalism at the Technical University of Dortmund and trained at rbb science. She uses data analysis and visualization to cover environmental, social, and cultural topics.

EDJNet members which took part in this investigation:

DW Deutsche Welle (@DeutscheWelle) / X

Kira Schacht

CINS – Center for Investigative Journalism of Serbia

Teodora Ćurčić

Media uptakes

From EDJNet members: