Sweden Installs 652 MW of Solar Capacity in 2025 as Market Shifts Toward Larger Projects

Sweden added an estimated 652 MW of new solar capacity in 2025, bringing the country’s cumulative installed solar capacity to around 5.4 GW. While this figure represents a decline from the previous year’s additions, the Swedish solar market continued to evolve across residential, commercial, and utility-scale segments.

Residential solar installations totaled approximately 239 MW in 2025, marking a year-on-year decline of about 39%. This contraction was driven by a combination of policy changes, including the removal of certain tax incentives, alongside broader economic factors such as lower electricity prices compared with the peaks of 2022, higher interest rates, and ongoing inflationary pressures.

Despite the slowdown in residential installations, small-scale systems below 20 kW continued to dominate the Swedish solar market. These systems accounted for more than half of total installed solar capacity, amounting to just over 3 GW. Sweden now hosts more than 287,000 grid-connected solar installations in this size category, representing approximately 90% of all connected solar systems nationwide.

Commercial and industrial solar installations reached around 215 MW in 2025, a decline of roughly 35% compared with the previous year. In contrast, utility-scale solar experienced significant growth, with large projects deploying a record 198 MW of new capacity—an increase of nearly 46% year on year.

As a result, utility-scale solar accounted for around 30% of all new solar capacity added in 2025, compared with just 7% in 2024. The year saw the commissioning of several large solar parks, alongside announcements of additional large-scale developments expected to be built in the coming years.

Battery storage adoption also continued to expand, particularly in the residential segment. Preliminary data indicate a growing number of households are installing batteries to complement solar systems, improving self-consumption and reducing exposure to grid price volatility.

Looking ahead, Sweden’s solar market is expected to benefit from streamlined permitting procedures, improved grid access, and regulatory frameworks that reward flexibility and energy storage alongside traditional grid expansion.