The rapid expansion of solar PV across Europe (EU-27 + UK, Switzerland and Norway) is playing a pivotal role in reducing carbon emissions and accelerating the energy transition. In 2024, Europe added over 69 GW of new solar capacity, generating an estimated 82 TWh of clean electricity in the same year only through its annually installed PV fleet. This alone could offset more than 32.8 million tons of CO₂, assuming an average grid emission factor of 0.4 kg CO₂ per kWh.
Looking ahead, with ~74 GW of annual new installations projected for 2025 and nearly 89 GW in 2029, the annual carbon savings through only the new PV installations are set to rise to 35.4 million in 2025 and 42.2 million tons of CO₂ in 2029 respectively. Over 40% of this annual carbon reduction has come from the commercial and industrial (C&I) segment (from 20 kW to 5 MW projects defined by EUPD Research Global Energy Transition GET-Matrix ©), in 2024; this figure is estimated to reach around46% by the end of the year 2029.
EUPD Research projects that between 2025 and 2029, the European C&I solar segment will expand from 33 GW of annual installations in 2025 to over 40 GW in 2029, leading to an aggregated new C&I installation of 185 GW in the next five years. By the end of 2029 alone, this surge in capacity is expected to prevent approximately 88 million tons of CO₂ emissions equivalent to saving around 204 million barrels of oil in a single year (considering an average CO₂ emission of approximately 432 kg per barrel of oil). These figures underscore the rising significance of C&I solar not just as a pillar of energy security, but as a foundational element in Europe's broader climate strategy and transition to a net-zero economy.
Strategic sweet spot
The C&I segment occupies a distinct strategic position in the European markets. With access to larger rooftops and favorable load profiles, C&I systems benefit from efficient self-consumption, while avoiding land-use conflicts and permitting hurdles typically associated with utility-scale projects. According to data from EUPD Research’s Global Energy Transition GET-Matrix©, multiple European states are implementing targeted measures to accelerate C&I PV deployment in the years ahead. This positions the segment in a strategic sweet spot, offering faster development timelines, on-site energy use, and reduced reliance on the grid.
This structural advantage is further reinforced by current market dynamics. According to the EUPD Research’s PV Price & Inventory Tracker©, average system prices in the 30–100 kW range – representative of typical mid-scale commercial systems across Europe – declined by 20% in Q2 2025 compared to the previous quarter. This significant drop highlights the improving economics of C&I installations across Europe.
Quantifying the advantage
To evaluate this economic advantage, EUPD Research conducted a pan-European analysis of the levelized cost of electricity (LCOE) for C&I systems, based on the latest Capex and Opex projections. By comparing LCOE values to prevailing retail electricity tariffs – including taxes and levies – EUPD derived an average net benefit of $0.15/kWh for C&I solar across Europe. This figure illustrates a strong and growing economic case for solar PV in the commercial and industrial space – supported both by favorable cost trends and policy frameworks.
However, while the average net benefit of C&I solar across Europe supports continued investment, market attractiveness varies significantly across the region. For example, the average net benefit in the top 10 European C&I markets reaches approximately $0.22/kWh, whereas the bottom 10 markets offer just $0.08/kWh. This disparity highlights the need for a more nuanced market tiering, one that goes beyond total PV installation volume to assess the value and viability of each segment individually. In particular, evaluating C&I markets based on segment-specific deployment levels and achievable returns on investment would be the two vital factors, among others, for data-based and informed decision-making.
Trust and brands that deliver
As C&I markets continue to diversify, quantitative indicators such as LCOE are increasingly being complemented by qualitative factors, including the reliability and positioning of solution providers. The C&I market is fundamentally trust-driven. Installers, EPCs, and commercial clients not only demand technical performance but also responsive service, transparent ESG practices, and financial reliability. To capture these complex dynamics, EUPD Research has introduced the Brand Leadership & Sustainability Rating (BLSR)©️ – a comprehensive evaluation across four pillars:
- PV InstallerMonitor© | EES InstallerMonitor©, PV Commercial & Industrial EPCMonitor©, SolarProsumerMonitor© – Installers, EPCs and C&I stakeholders as well as Prosumers’ brand awareness distribution width and depth and satisfaction/Net Promoter Score across the European market.
- ESG Reports and Innovation – Commitment to sustainability, transparency, and R&D.
- Price-Performance Ratio – Product quality relative to cost.
- Financial Health Check – Present and short/mid-term financial stability.
Unlike conventional Tier 1 lists or volume-based rankings, the BLSR©️ goes deeper – measuring brand reputation, operational resilience, and long-term viability.
Assessing market players
In EUPD Research’s BLSR©️, top-performing brands are evaluated across a broad spectrum of excellence, with ratings ranging from B to AAA, denoting increasing levels of market leadership, sustainability, innovation, and financial strength. The “A” rating reflects strong and reliable overall performance, while higher ratings such as “AA” and “AAA” indicate outstanding and industry-leading capabilities across all assessment dimensions. A “+” may be added in recognition of particularly ESG Transparency Commitment. Notably, only manufacturers that have demonstrated clear relevance among end customers and market intermediaries — and that meet minimum standards of transparency through the disclosure of key financial data — are eligible for inclusion in the BLSR©️ in the first place.
In the PV category, six manufacturers earned the “AA+” rating, including Jinko Solar, JA Solar, Canadian Solar, and LONGi Solar, demonstrating strong brand perception, innovation, and solid financial fundamentals; As Henning Schulze, President Europe at JA Solar, emphasizes: “We find this approach from EUPD Research to rate PV module suppliers from various angles very interesting. Our reputation in the market based on customers’ experiences, financial stability showing a prudent approach even in the current tough market environment, our strength on R&D and products as well as our commitment to ESG materialized through our ESG strategy ‘Green to green – green to grow – green to great’. And we are of course very happy about having achieved a very good score, that we still want to increase in the future.”
Similarly, in the inverter segment, six brands also reached the “AA+” level, among them SolaX Power, Sungrow, and GoodWe, reflecting their robust performance in the European C&I market. Ramon Zheng, General Manager of Overseas Business, SolaX Power, highlights the growing importance of credible recognition by stating that: “SolaX Power is honored to receive the prestigious AA+ rating for both inverters and storage from EUPD Research. Being recognized among Europe's top-tier solar solutions providers is a tremendous validation of our dedication to quality, innovation, and sustainability. We remain deeply committed to driving the energy transition forward, delivering reliable and eco-friendly energy solutions for a brighter, greener future.”
In the storage category, five manufacturers achieved the “AA+” rating, including global leaders such as BYD, Pylontech, and Tesla. These manufacturers received strong BLSR©️ ratings within the European storage segment, underlining their current relevance and stable market presence. (see full alphabetical list here).
Need for clear market signals
As Europe’s C&I solar market continues to grow in importance, the landscape for solution providers remains highly fluid. Ongoing consolidation trends, global supply chain exposure, and mounting geopolitical and regulatory uncertainties – including renewed tariff measures and shifting frameworks in the U.S., industrial consolidation policies in China, and carbon-related compliance mechanisms emerging in the EU – are adding new layers of complexity. For stakeholders such as investors, EPCs, banks, and corporate buyers, this heightens the challenge of evaluating supplier reliability, strategic alignment, and long-term viability. Tools like the BLSR©️ can support more informed decision-making in this context, complementing established criteria such as cost, performance, and delivery assurance.
Authors: Markus A.W. Hoehner and Ali Arfa
Markus A.W. Hoehner is the Founder, President and Chief Executive Officer of Hoehner Research & Consulting Group and EUPD Research. He has been active in top-level research and consulting, focusing on cleantech, renewable energy, and sustainable management for more than three decades. He can be reached at m.hoehner@eupd-research.com.
Ali Arfa is a Senior Data Manager at EUPD Research. He is a graduate of the University of Bonn and with a background in European and North American politics. His expertise encompasses market research, policy development, and stakeholder analysis. His particular focus is on solar energy, energy storage, and strategic consultation. He can be reached at a.arfa@eupd-research.com.
The views and opinions expressed in this article are the author’s own, and do not necessarily reflect those held by pv magazine.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.