Press Release: Large-scale solar thermal gains ground. Stable policy is needed to restore residential markets
-
- Heat accounts for roughly half of EU energy demand, yet only 27% comes from renewables, making it one of the most overlooked parts of Europe’s energy transition.
-
- Sales of solar thermal in residential markets continue to be affected by stop-start policy frameworks, while industrial and district heating projects demonstrate that deployment accelerates when demand, permitting and financing conditions align.
-
- EU solar thermal manufacturers already supply around 90% of European demand and report they could triple production capacity, avoiding the need for a new import dependency.
Brussels, 11 September 2026: Solar Heat Europe released today its 2025/2026 Market Outlook, highlighting that heat, which represents roughly half of Europe’s energy demand, continues to lag behind other parts of the energy transition. The report shows strong dependence on policy signals for Europe’s solar thermal sector, which saw 1.18 million m² of newly installed collector area in 2025 (830 MWth), a 6.5% decline compared to 2024. The sector’s cumulative installed capacity in operation stands at 43.6 GWth across Europe, holding steady year-on-year. EU-based manufacturers, who continue to supply around 90% of European demand, are calling for a faster implementation of the Fit for 55 Package and a strong Cooling and Heating Action Plan to provide stable market signals and unlock investment across residential, industrial and district heating applications for solar thermal.
Market performance varied sharply by country and segment. Cyprus (+6%), France (+3.9%) and the Netherlands, which saw an exceptional increase driven by the commissioning of the Groningen solar district heating project (+148.6%), all posted growth in 2025. Historically the biggest market in Europe, Germany still worked through the aftermath of its Heating Law negatively impacting the market for buildings, and contracted by 30%, partly offset by eleven new district heating plants. Greece, historically one of Europe’s strongest markets, was essentially flat as delays to a national subsidy scheme paused installations through the middle of the year. These developments illustrate the consequences of stop-start policy approaches in residential markets, where uncertainty can rapidly slow deployment.
However, the sector highlighted continued growth in tertiary buildings, industrial process heat and district heating, with 50 new Solar Heat for Industrial Processes (SHIP) projects commissioned across Europe and major district heating projects in cities like Groningen (NL), Bracht, Stralsund, Tübingen-Au and lately Leipzig (DE). These projects demonstrate that deployment responds rapidly when demand, permitting and financing conditions align.
The report also points to solar thermal’s largely untapped potential: heat represents roughly half of the EU’s total energy demand, yet only 27% of it comes from renewable sources. With 12 million European rooftops already equipped with solar thermal and 16,000 district heating networks across the continent needing clean energy supply, the sector argues the growth headroom is substantial on all market segments, particularly as solar thermal can be readily hybridised with heat pumps to relieve pressure on the electricity grid, thus supporting broader electrification efforts.
Guglielmo Cioni, President of Solar Heat Europe, said: “Our manufacturers can easily triple production capacity, contributing to energy security and cost certainty for citizens and industries. Europe does not need to create a new import dependency to decarbonise heat, because a strong manufacturing base already exists. The right market signals across Member States are key to unlock that potential and enable Europe to cut its dependence on fossil fuels. This year, more than ever, we’ve seen the effects of climate change, with record breaking heatwaves and wildfires spreading across Europe. The time to act is now and solar thermal is ready to deliver.”
Valérie Séjourné, Managing Director of Solar Heat Europe, said: “The EU Cooling and Heating Action Plan and upcoming legislation framework are key opportunities for EU leaders to give solar heat dedicated visibility and deployment pathways. Heat is half of our energy needs, yet it remains the most overlooked part of the transition. Europe’s climate and energy security goals will only be achieved when promoting all clean energy sources for its biggest energy demand. Solar Thermal, a homegrown, EU-made, off-grid renewable technology that delivers clean and cost-efficient heat, should be central to Europe’s energy security.”
About Solar Heat Europe:
Solar Heat Europe aims to promote and facilitate the successful deployment of all solar thermal technologies as efficient, ready-to-deploy and reliable decarbonised energy sources for the provision of heating and cooling in buildings, district heating networks and across industry. Its network represents more than 225 organisations covering different parts of the value chain and manufacturing in Europe.