In its Renewables 2025 report released in October 2025, the International Energy Agency (IEA) identified solar thermal district heating (SDH) as one of the key technologies to watch in the coming years.
As highlighted by the IEA, solar thermal solutions – which are already delivering renewable and efficient heat in more than 350 cities worldwide – offer significant advantages for heat generation. “Solar thermal systems have three times greater land-use efficiency than solar PV for heat generation, making them very suitable for cities looking to retrofit or expand their district heating networks. In rural areas, land availability also makes solar district heating an attractive option. Less than 1% of European district heating systems currently integrate solar thermal, which is an addition to other renewable district heating sources.” – IEA, Renewables 2025
2025 marked a milestone year for solar thermal district heating in the European Union. Six new systems were commissioned across the region: three in Germany, and the rest in the Netherlands, Italy, and Austria. These developments underline the growing momentum of solar thermal as a reliable and efficient renewable heat solution.
Among these projects, the Dorkwerd Solar Thermal Park in the Netherlands (see picture) stands out. Located in the municipality of Groningen, it is currently the fourth-largest solar district heating system in the world. Inaugurated in May 2025, the installation comprises 24,000 solar collectors and is expected to provide sustainable heat to approximately 10,000 households in Groningen. This landmark project benefited from the expertise and contributions of two of Solar Heat Europe’s members, Novar (project developer) and TVP Solar (solar thermal collector provider), alongside WarmteStad (client) and K3 (investor), demonstrating the strength of collaboration across the sector.
For more details about the Dorkwerd Solar Thermal Park, you can explore a dedicated case studies available on our website and watch the interview of the project partners on our YouTube channel.
On the cost competitiveness of solar thermal, IEA continued: “Costs are falling quickly: every doubling of installed capacity results in a 17% cost reduction for solar district heating. In Denmark, the levelised cost of heat is already around EUR 40/MWh, and in sunnier countries such as Spain, it could drop to EUR 20/MWh when combined with seasonal thermal storage. EU policy mandates, renewable energy targets and dedicated financial support are expected to remain key drivers for growth in solar thermal deployment for district heating.
Further highlighting the growing interest in solar thermal district heating, Solar Heat Europe and Euroheat & Power, co-organised a webinar in December 2025 focused on the efficiency and potential of this technology across Europe, within the framework of the Bring Heat Home campaign. The event featured policy insights from Matthieu Ballu (DG ENER), as well as presentations showcasing recent projects and innovations from Lucie Nebut (Newheat), Guglielmo Cioni (TVP Solar), Alejandro del Amo (Abora Solar), Rainer Troppmann (Gasokol) and Magdalena Berberich (Solites). In case you missed it, the full webinar recording is available on our YouTube channel.
There is a lot happening right now in the field of solar thermal district heating, as demonstrated by the ongoing work undertaken at global level with the IEA SHC Task 68, which gathers recent research and analysis on Solar thermal District Heating and helps raise awareness on the benefits of solar thermal for efficient district heating.
To access our library of Solar Thermal District Heating, click here: https://solarheateurope.eu/resource-center/case-studies/