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Solar, EV Sales Hit Record Highs in 2025, European Commission Report Shows

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European energy markets saw a record-breaking solar expansion and a surge in electric vehicle sales in 2025, even as electricity and gas consumption saw a slight weather-driven rebound following the ongoing energy crisis, according to a European Commission report released on Monday.

Solar generation surged 18% to a 275 terawatt-hours, including 56 gigawatts of new installations, according to the report.

Total renewable capacity additions neared 70 GW, which included a 13 GW increase in wind capacity and a 4% rise in offshore wind generation, the report noted.

Parallel to this clean grid expansion, the automotive sector saw a record 31% year-on-year increase in EV sales, with 2.89 million new units sold. By the final quarter, EVs secured a 22% market share, the report added.

Meanwhile, utility markets continued a gradual, uneven recovery from the ongoing energy crisis.

The European Power Benchmark averaged 85 euros/MWh, climbing 9% from the previous year but remaining 14% lower than earlier crisis peaks, as per the report.

Price disparities across Member States remained stark, ranging from a low of 41 euros/MWh in Finland to 116 euros/MWh in Italy.

Driven by colder winter temperatures, EU electricity consumption rose 1%, though total demand stayed 2% below the historical baseline, it said.

The wholesale gas sector reflected a similar stabilizing trend. Annual wholesale gas prices ticked up 5% to average 36 Euros/MWh, influenced by early-year supply anxieties following the cessation of Russian pipeline gas transit through Ukraine.

Despite this minor bounce, wholesale costs sat 22% below pre-crisis baselines, while retail gas prices leveled out at an average of 109 euros/MWh.

Total EU gas consumption experienced a minor 2% rebound to 339 billion cubic meters, as per the report.

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