solar energy drives prices down

A massive wave of solar energy is rewriting the record books across Europe. The European Union reached an all-time high of 45.4 TWh of solar PV output in June 2025, making up 22.1% of EU electricity. For the first time in history, solar power exceeded all other power sources in the EU during June.

Germany led the solar charge with 39,817 GWh in the first half of 2025, followed by Spain with 23,066 GWh, Italy with 16,982 GWh, and France with 15,011 GWh. The Netherlands achieved an impressive 40.5% of its electricity from solar in June, while Greece reached 35.1%.

Solar dominance reshapes Europe’s energy landscape, with Germany, Spain, Italy and France leading the revolution.

This solar boom has created an unexpected side effect – a sharp increase in negative electricity price hours. Sweden’s SE2 zone experienced 506 hours of negative prices in the first half of 2025. Spain recorded 459 negative price hours, the Netherlands 408, and Germany 389.

These negative prices occur when too much electricity floods the grid during peak solar production. Solar generation reached an unprecedented 104.4 TWh in Q2 2025, contributing significantly to the pricing phenomenon. The afternoon periods now see the steepest negative prices, followed by evening price spikes when fossil fuel plants ramp up to replace fading solar generation.

Experts predict this trend will intensify in Q3 2025 as renewables continue expanding without matching growth in demand or storage. Despite the price volatility, the solar surge has helped push coal’s share in the EU power mix to a record low of 6.1% in June 2025, down from 8.8% a year earlier.

Both solar and wind hit all-time highs in May and June, with wind delivering 15.8% of EU electricity in June. The record solar generation has also helped maintain grid stability during June heatwaves when demand typically spikes.

However, limited energy storage remains a challenge as Europe works to balance its increasingly renewable-powered grid. The growth patterns mirror the United States, where solar already accounts for 3.9% of electricity generation and continues to expand rapidly. France’s exceptional 33% solar increase in H1 2025 has significantly contributed to the continent’s renewable energy transformation. Thirteen EU member states set new monthly solar generation records in June 2025, highlighting the rapid transformation of Europe’s energy environment.

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