Norway adds 117 MW of solar in 2025

Norway installed 117 MW of solar in 2025, according to figures published by the Norwegian Water Resources and Energy Directorate (NVE).

The result is down on both 2024’s result and the country’s record year for solar deployment in 2023, taking cumulative capacity to around 876 MW.

The commercial and industrial market segment added the majority of Norway’s solar in 2025, installing 81 MW across the commercial and institutional and other services sectors, as defined by NVE. Hassan Gholami, a senior consultant on solar and storage at Multiconsult, told pv magazine that the main market driver last year was commercial actors seeking energy independence and cost savings amid moderately high daytime power prices.

In contrast the residential market, once the dominant segment in Norway’s solar mix, added 13 MW in 2025. Gholami said this downturn was strongly influenced by lower spot prices, reduced subsidies and economic uncertainty.

“High interest rates, among the highest in Europe, also made many projects less appealing, especially for households and small to medium-sized enterprises,” Gholami explained, before adding that 2025 was also marked by a wave of bankruptcies and layoffs in the sector, with firms scaling back operations, in turn eroding confidence and reducing market capacity.

Residential demand has also been impacted by the Norgespris scheme, a capped household electricity price introduced last year. “Stakeholders consistently cited it as a misstep that directly contributed to reduced demand and bankruptcies of companies active in this field,” Gholami said.

While Norway’s utility-scale solar market remains marginal in terms of installed capacity, Gholami believes that 2025 marked an important inflection point with the licensing and early construction of Norway’s first multi-megawatt solar parks.

The Norwegian government increased the threshold for requiring a license from 1 MW to 10 MW last year. Gholami explained this has helped interest in pre-licensed mid-scale projects to grow substantially, with developers actively preparing projects under this regime.

Other regulatory changes included the implementation of energy sharing regulations, in force from this month, allowing for shared solar generation within local grids. The Norwegian government is also reviewing a guaranteed minimum feed-in tariff, with a feasibility study mandated for this year.

Gholami said that despite 2025 marking a clear market bottom, the outlook for 2026 remains cautiously optimistic.

“Deployment could rise to between 150 MW and 200 MW, driven by policy reform and the continued strength of the commercial and industrial segments,” he said. “Utility-scale projects are progressing, and the new energy sharing rules will support more integrated, community-based solar initiatives.”

But he also warned that residential demand may continue to weaken unless specific incentives are introduced. Gholami suggested the Norgespris should be scaled back or balanced with incentives that reward solar production, a guaranteed feed-in tariff or minimum compensation scheme for self-produced solar exported to the grid should be introduced and energy sharing should be expanded to residential blocks and housing cooperatives.

“It would also be beneficial to mandate solar on all new commercial and public buildings above a certain size, improve grid connection processes, and reserve local grid capacity for renewables,” Gholami added. “Reinstituting or increasing capital grants for residential systems, via Enova or tax credits, would help restore growth.”

In October, a Norwegian research team found rooftop solar could theoretically cover up to 20% of Norway’s current electricity needs while developing the country’s first full solar map.

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