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Study Period | 2021 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Historical Data Period | 2021 - 2023 |
CAGR | 23.30 % |
Market Concentration | Medium |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Sweden Solar Energy Market Analysis
The Sweden Solar Energy Market is expected to register a CAGR of 23.3% during the forecast period.
Sweden's solar energy landscape is undergoing significant transformation as the country progresses toward its ambitious goal of achieving 100% renewable energy generation by 2040. The market structure shows a diverse mix of installation types, with over 50% of deployed PV systems having a capacity of less than 20 kW as of 2021, indicating strong adoption in the small-scale segment. The levelized cost of electricity (LCOE) for large-scale solar power projects has become increasingly competitive, reaching EUR 0.02737/KWh in 2022, making solar energy an economically viable option for various stakeholders. This cost-effectiveness has led to increased interest from both private and public sectors in developing solar installation infrastructure.
The market is witnessing a surge in large-scale project developments, particularly in the ground-mounted segment. In March 2022, Swedish renewable developer Recap Energy formed a joint venture with Finnish investment company Korkia to develop more than 200 MWp of ground-mounted solar farm projects over four years. Similarly, Helios Nordic Energy AB entered into an agreement with Nordic Solar in 2022 to acquire four ground-mounted projects with a combined capacity of approximately 220 MWp in southern Sweden. These developments demonstrate growing investor confidence in the Swedish solar energy market and highlight the shift toward utility-scale installations.
The commercial and industrial rooftop segment is experiencing notable growth, with major corporations increasingly adopting solar technology solutions to meet their sustainability goals and manage energy costs. A significant example is Axfood AB's announcement in April 2022 to install what will be the country's largest rooftop solar system, with a capacity of 8.9 MW, on their logistics facility. This trend is particularly evident in the retail and logistics sectors, where large roof areas provide ideal conditions for solar installation.
The Swedish solar energy market is characterized by technological advancement and innovation in system design and integration. Companies are increasingly focusing on developing smart solar technology solutions that incorporate energy storage and management systems, enabling better grid integration and improved energy efficiency. The market is also seeing a rise in building-integrated photovoltaic (BIPV) solutions, particularly in commercial and industrial applications, where aesthetics and functionality are equally important considerations. This evolution in technology and application methods is creating new opportunities for market players while contributing to the overall growth of the solar energy sector in Sweden.
Sweden Solar Energy Market Trends
Rising Electricity Demand and High Energy Prices
The surging electricity demand across various sectors, coupled with escalating energy prices, has emerged as a significant driver for Sweden's solar energy market. According to the Swedish Energy Agency, the country's total energy consumption is projected to increase by 5% to 523 TWh between 2020 and 2024, with the industrial sector expected to witness a substantial surge in electricity demand of 5.1% to 143 TWh. Similarly, the residential sector's energy requirements are anticipated to grow by 3.6% to 145 TWh during the same period, creating a pressing need for alternative energy sources.
The energy price crisis has further accelerated the adoption of solar panel solutions in Sweden. As of August 2022, the average monthly electricity wholesale price reached EUR 190.12/MWh, marking a dramatic increase of approximately 350% from EUR 54.34/MWh in January 2019. This substantial rise in electricity costs has made solar installation increasingly attractive for both residential and commercial consumers, as they seek to reduce their dependence on grid electricity and manage their energy expenses more effectively. The economic benefits of self-consumption through solar system installations have become particularly compelling in the context of these unprecedented energy price levels.
Nuclear Power Phase-out and Energy Security
Sweden's ongoing nuclear power phase-out strategy has created a significant opportunity for solar power development in the country's energy mix. Since 2012, there has been more than a 17% decline in electricity generated from nuclear power as the country actively works towards reducing its nuclear dependency. This transition has been marked by the permanent shutdown of several nuclear facilities, including the Barsebäck 1 and 2 reactors in 2020, followed by the decommissioning of the Ringhals 2 and Ringhals 1 nuclear power plants after 44 years of operation in 2020 and 2021, respectively.
The situation is expected to become more critical as Vattenfall AB, a leading nuclear power operator in Sweden, faces operational challenges. Due to regulatory constraints regarding nuclear waste storage, the company may need to halt operations in four nuclear power plants by 2025. This impending reduction in nuclear power capacity, combined with the current geopolitical tensions affecting gas supplies across Europe, has heightened concerns about energy security and supply stability. These circumstances have created a strong impetus for diversifying Sweden's energy portfolio, with solar energy emerging as a viable and sustainable alternative to fill the growing energy gap.
Government Support and Declining Solar Costs
The Swedish government's proactive support through various incentive programs, coupled with the declining costs of solar technology, has created a favorable environment for solar energy adoption. In April 2021, the government demonstrated its commitment to solar energy development by allocating SEK 260 million specifically for supporting homeowners in deploying residential PV systems under the country's solar rebate scheme. This financial support, combined with attractive loan rates as low as 1.5% for residential solar systems, has significantly improved the economic feasibility of solar installations for private consumers.
The market has further benefited from the continuous reduction in PV technology costs and increased private sector participation. Major developments in the utility-scale segment exemplify this trend, with significant projects being initiated through public-private partnerships. For instance, the joint venture between Recap Energy and Korkia to develop more than 200 MWp of ground-mounted solar PV projects, and Helios Nordic Energy AB's agreement with Nordic Solar to acquire four ground-mounted projects with a combined capacity of approximately 220 MWp, demonstrate the growing confidence in solar investments. These developments, supported by decreasing technology costs and streamlined installation processes, have made solar energy an increasingly competitive option in Sweden's energy landscape.
Segment Analysis: Location of Deployment
Rooftop Segment in Sweden Solar Energy Market
The solar rooftop segment continues to dominate the Swedish solar power market, holding approximately 55% market share in 2024. This segment's prominence is primarily driven by widespread adoption among residential and commercial solar users, with rooftop installations ranging from 2 to 10 kilowatts for residential solar systems and 10 to 250 kilowatts for commercial solar applications. The segment's growth is supported by declining installation costs, with average price decreases of 1-2% for residential systems and 6-15% for multi-family house installations. Additionally, government initiatives and rebate schemes specifically targeting solar rooftop installations have played a crucial role in maintaining this segment's market leadership, particularly with the allocation of significant funds to support homeowners in deploying residential PV systems under the country's solar rebate scheme.
![Market Analysis of Sweden Solar Energy Market: Chart for Location of Deployment](https://s3.mordorintelligence.com/sweden-solar-energy-market/sweden-solar-energy-market-Sweden-Solar-Energy-Market-Market-Share-by-Location-of-Deployment-Segment-2024-1737052132279.webp)
Ground-mounted Segment in Sweden Solar Energy Market
The ground-mounted segment is emerging as the fastest-growing segment in the Swedish solar energy market, demonstrating remarkable growth potential through 2024-2029. This rapid expansion is driven by increasing private investment in utility-scale solar farm projects and the development of large solar parks across the country. The segment's growth is further accelerated by the declining costs of PV systems and the increasing interest from municipalities in developing ground-mounted installations. The segment has witnessed significant momentum with several major projects being developed, particularly in the southern regions of Sweden where solar irradiation levels are more favorable. The growth is also supported by the improving LCOE (Levelized Cost of Energy) for large-scale solar projects, which has made ground-mounted installations increasingly attractive to investors and developers.
Segment Analysis: End-User
Utility Segment in Sweden Solar Energy Market
The utility segment has emerged as the dominant force in Sweden's solar energy market, commanding approximately 44% market share in 2024. This significant market position is driven by increasing investments in large-scale solar farm projects across the country. The segment's growth is supported by declining costs of PV systems for centralized ground-mounted solar PV parks and favorable LCOE rates, which have attracted substantial investor interest. Major utility-scale developments are concentrated in the southern regions of Sweden, particularly in SE3 and SE4 zones, where solar irradiation levels are more favorable for large-scale installations. The segment's dominance is further reinforced by supportive government policies and the increasing adoption of corporate power purchase agreements (PPAs) and merchant-based revenue schemes for utility-scale projects.
Utility Segment Growth in Sweden Solar Energy Market
The utility segment is demonstrating remarkable growth potential in the Swedish solar energy market for the period 2024-2029. This exceptional growth trajectory is driven by several key factors, including the increasing number of ground-mounted centralized PV parks being developed across the country. The segment's expansion is supported by growing private investment, particularly from international developers and investors who are attracted by Sweden's stable regulatory environment and commitment to renewable energy. Recent developments include significant joint ventures and project acquisitions, such as those by Recap Energy and Nordic Solar, which are contributing to the segment's rapid expansion. The declining costs of utility-scale installations, coupled with improving grid integration capabilities, are further accelerating the segment's growth momentum.
Remaining Segments in End-User Segmentation
The residential solar and commercial solar segments continue to play vital roles in Sweden's solar energy market development. The residential solar segment benefits from government subsidies and rebate programs designed to encourage homeowner adoption of solar system PV systems, while also leveraging the advantages of improved sustainability and reduced electricity bills. The commercial solar segment is driven by corporate sustainability goals and the increasing adoption of solar rooftop installations by businesses seeking to reduce their carbon footprint and operating costs. Both segments are characterized by predominantly rooftop installations and benefit from continuing technological improvements and installation cost reductions in the Swedish market.
Sweden Solar Energy Industry Overview
Top Companies in Sweden Solar Energy Market
The Swedish solar energy market features a mix of established domestic players and international companies driving innovation and growth. Companies are increasingly focusing on developing integrated solar systems that combine panels, energy storage, and smart monitoring systems to provide comprehensive energy management solutions. Strategic partnerships, particularly between solar developers and utilities, have become a key trend as firms aim to scale up project development capabilities. Market leaders are expanding their presence through both organic growth and acquisitions, with particular emphasis on the southern regions of Sweden where solar irradiation levels are more favorable. Companies are also investing heavily in developing turnkey solutions for commercial and industrial customers, while simultaneously strengthening their residential solar installation networks through dealer partnerships and training programs.
Market Dominated by Local-Global Player Mix
The Swedish solar energy market exhibits a moderate level of consolidation, characterized by the presence of both local specialists like SVEA Renewable Solar AB and Solkompaniet Sverige AB, alongside global energy conglomerates such as Vattenfall AB and ABB Ltd. Local players leverage their market knowledge and established customer relationships to maintain strong positions in residential and commercial segments, while global players bring technological expertise and financial strength to utility-scale projects. The market structure is evolving with increasing participation from international renewable energy developers and investors, particularly in large-scale solar parks.
Recent years have witnessed significant merger and acquisition activity, particularly involving European renewable energy developers acquiring Swedish solar project pipelines and development companies. Joint ventures and strategic partnerships have become increasingly common, especially between project developers and energy utilities, as companies seek to combine complementary capabilities in project development, financing, and grid integration. This trend is reshaping the competitive landscape, with larger players consolidating their positions while new entrants seek to establish footholds through strategic acquisitions and partnerships.
Innovation and Integration Drive Future Success
For established players to maintain and expand their market share, developing comprehensive energy solutions that integrate solar with solar storage, electric vehicle charging, and smart energy management systems will be crucial. Companies must also focus on building strong relationships with property developers and industrial customers, while investing in digitalization to improve operational efficiency and customer experience. Success will increasingly depend on the ability to offer flexible financing solutions, particularly power purchase agreements (PPAs), and to develop expertise in managing complex utility-scale projects.
New entrants and challenger companies can gain ground by focusing on underserved market segments and developing specialized expertise in areas such as building-integrated photovoltaics or agrivoltaics. The increasing emphasis on environmental sustainability and energy independence creates opportunities for companies that can effectively combine technical innovation with strong customer service and local market knowledge. Regulatory support for renewable energy and the government's commitment to achieving net-zero emissions by 2045 provides a favorable environment for market expansion, though companies must carefully navigate grid connection requirements and local planning regulations.
Sweden Solar Energy Market Leaders
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Exeger Sweden AB
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InnoVentum AB
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Vattenfall AB
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HPSolartech
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ABB Ltd
- *Disclaimer: Major Players sorted in no particular order
![Sweden Solar Energy Market Concentration](https://s3.mordorintelligence.com/sweden-solar-energy-market/sweden-solar-energy-market_1591409351653_Market_Concentration_-_Sweden_Solar_Energy_Market.webp)
Sweden Solar Energy Market News
- November 2022: European Energy, a Danish-based developer of solar parks, is set to build a 128.5 MW solar park near Helsingborg in southern Sweden. The plant is expected to produce 175 GWh of electricity annually. Production is expected to begin in 2024 after the completion of the project by 2023.
- September 2022: Ilmatar Solar AB, a subsidiary of Ilmatar Energy, planned to build a solar park in the municipality of Motala in Östergötland, Sweden. The agreement between Ilmatar Solar and the consultant company Vinnergi AB includes the planning of new, large-scale solar parks. The partnership is planning the construction of a solar park that will be among the largest in Europe, with a capacity of 550 megawatts and produce enough electricity for 32 thousand households.
Sweden Solar Energy Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Solar Energy Installed Capacity and Forecast, in Megawatt (MW), till 2027
- 4.3 Recent Trends and Developments
- 4.4 Government Policies and Regulations
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4.5 Market Dynamics
- 4.5.1 Drivers
- 4.5.2 Restraints
- 4.6 Supply Chain Analysis
- 4.7 PESTLE Analysis
5. MARKET SEGEMENTATION
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5.1 By Location of Deployment
- 5.1.1 Rooftop
- 5.1.2 Ground-mounted
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5.2 By End User
- 5.2.1 Residential
- 5.2.2 Commercial and Industrial (C&I)
- 5.2.3 Utility
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers, Acquisitions, Collaborations, and Joint Ventures
- 6.2 Strategies Adopted by Key Players
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6.3 Company Profiles
- 6.3.1 SVEA Renewable Solar AB
- 6.3.2 Vattenfall AB
- 6.3.3 S-Solar AB
- 6.3.4 InnoVentum AB
- 6.3.5 Exeger Sweden AB
- 6.3.6 Eneo Solutions AB
- 6.3.7 HPSolartech AB
- 6.3.8 ABB Ltd
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Sweden Solar Energy Industry Segmentation
Solar energy is a type of renewable energy in which solar panels are used to generate electricity. Solar panels deployed on rooftops or mounted on the grounds are utilized effectively by end users, including residential, commercial & industrial (C&I), and utilities. Solar energy has become the fastest-growing renewable energy source owing to the country's supporting government initiatives and surging investments in renewable energy projects.
The Swedish solar energy market is segmented by location of deployment (rooftop, ground-mounted) and end user (residential, commercial, and industrial (C&I), utility). The report offers the market size and forecasts in terms of installed capacity in MW for all the above segments.
Sweden Solar Energy Market Research FAQs
What is the current Sweden Solar Energy Market size?
The Sweden Solar Energy Market is projected to register a CAGR of 23.3% during the forecast period (2025-2030)
Who are the key players in Sweden Solar Energy Market?
Exeger Sweden AB, InnoVentum AB, Vattenfall AB, HPSolartech and ABB Ltd are the major companies operating in the Sweden Solar Energy Market.
What years does this Sweden Solar Energy Market cover?
The report covers the Sweden Solar Energy Market historical market size for years: 2021, 2022, 2023 and 2024. The report also forecasts the Sweden Solar Energy Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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The report provides stakeholders with actionable insights into commercial solar and residential solar segments. It includes a detailed evaluation of solar installation trends and solar generation capacity. Our analysis examines crucial aspects of solar equipment deployment, such as solar inverters, solar batteries, and solar storage solutions. The comprehensive coverage extends to emerging solar PV systems and their integration into existing infrastructure. Whether you're interested in solar farm development or advancing solar technology, this report offers valuable insights for decision-makers across the Swedish solar energy sector.