The latest Clean Energy Technology Observatory (CETO) report from the Joint Research Centre (JRC) of the European Commission provides a comprehensive assessment of the current state of solar thermal energy in Europe. The report highlights both the resilience of the EU solar thermal sector and the growing challenges affecting the global market.
Among the key findings:
- EU solar thermal capacity reached 41.7 GWth in 2024, accounting for 7.5% of the global total. At the same time, global installed capacity declined in 2024 for the first time since 2000, underscoring the urgent need for renewed policy support, stronger market stimulation, and long-term investment certainty for solar heat technologies.
- EU exports of solar water heaters increased by 30% in 2024, reaching EUR 42 million. This confirms the strong international competitiveness of European manufacturers, even in a challenging global market environment.
- The EU already has the manufacturing capacity to meet around two-thirds of its projected deployment needs for solar thermal technologies dedicated to heating and cooling. This significantly exceeds the 40% domestic manufacturing benchmark set by the Net-Zero Industry Act (NZIA), positioning solar thermal as one of Europe’s most mature and strategically autonomous clean technologies.
The report also underlines the strategic importance of solar thermal for the decarbonisation of buildings and industry, particularly for low- and medium-temperature heat applications, which represent a substantial share of Europe’s overall energy demand. In this context, solar heat is highlighted as a key complementary technology alongside heat pumps, district heating networks, and industrial electrification.
In addition, the report includes a section on market prospects, noting that the global solar thermal market is expected to grow by 9% by 2034, according to figures from Global Market Insights.
Against this backdrop, the upcoming EU Heating & Cooling Strategy represents a critical opportunity to fully recognise and harness the contribution of solar thermal energy. By strengthening market signals, boosting demand, and unlocking access to finance, the strategy could significantly accelerate deployment and support the continued growth of an already well-established European clean tech sector, fully in line with the objectives of the NZIA, the REPowerEU plan, and the EU’s long-term climate targets.
With the right policy framework in place, solar thermal can rapidly scale up to deliver affordable, locally manufactured renewable heat for millions of European households and businesses, strengthening Europe’s energy security while driving industrial competitiveness. Solar Heat Europe members stand ready to scale up!