When the total supply of negative-priced or inflexible generation exceeds demand, the marginal price becomes negative. There are four main reasons that generators bid negative prices into the day-ahead auction (or don’t respond to prices at all): Rooftop solar cannot be turned down in response to prices.
This price drop in solar equipment could drive demand up across Europe in 2025, and spur growth in several emerging markets, such as Poland, Hungary and Greece. PV Tech spoke to Agata Krawiec-Rokita, CEO of solar wholesaler sun.store, about the 2024 performance, and 2025 outlook, of European solar.
“Challenges remain, including grid connectivity issues, negative energy prices caused by spikes in solar production and competition from other affordable energy sources,” says Krawiec-Rokita. Image: sun.store. In 2024, the European solar market saw module prices drop month after month, while still adding a record volume of solar capacity.
For example, in Q2 solar PPA prices in the UK rose 18.4% and exceeded £60/MWh, according to a previous PPA Index report from LevelTen. Solar Power Portal's publisher Solar Media will host the Renewable Energy Trading Summit on 6-7 June 2023 in London.
The most significant hurdle, both for sun.store and the solar industry at large, lies within the supply chain. We’ve experienced record-low and continuously dropping equipment prices—our PV Index indicates that module prices have declined month over month since May 2024.
These have set the lowest negative prices recorded, and most negative prices that occur during the middle of the day. This is due to a surplus of solar generation in Europe. Collectively, 23% of the generation stack now has some level of price insensitivity.
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