European solar gains tumbling to record low on long sunny spring

(Bloomberg) – The profit at Europe’s solar parks has sunk to take up lows, which raises the concern that the more the industry expands, the further prices will fall. The figures are very sharp in Spain, where the so -called capturing rate, an important measure of profitability for renewable energy assets, has so far been on average 7% this month, according to the data of the London Stock Exchange Group PLC. This is lower than 43% a year ago. Europe’s sun season is exacerbated longer and more intensely, worse by a speed of new capacity that floods the network with power. This is to eat in the yields of generators and scare investors, especially in Spain and France, where spring has seen weeks of clear air. “The biggest risk factor for the expansion of renewable energy is the falling profitability in the solar sector,” says Nathalie Gerl, chief analyst of LESEG. “Lower catch rates undermine the business case for solar energy and put political solar targets at risk.” According to Bloombergnef, Spain saw its solar power above 50 gigawatts, six times higher than a decade ago. The rapid growth reflects a broader European trend, which is partly driven by a sharp drop in the cost of panels. In France, where the catch rate is at a record layer 13%, the capacity jumped almost fivefold during the period. Zero prices if power generation exceeds demand, this is a problem, as the amount of batteries plugged into the grids of the region has yet to catch up in renewable energy boom. Since the emerging production cannot be stored, the oversupply sends power prices that tumble – sometimes even below zero. The survey rate, which compares the electricity price that receives a solar farm with the average price in the wholesale market, is lower in Spain and France than in Germany, where prices are higher and the rate of more than 30%. Spain’s catch rate is the lowest in Europe, and would be even lower if it would not be after a move from solar farms this month to reduce production. The shift coincided with a ramp in gas -powered force to steady the network in the wake of a nationwide eclipse in April. More stories like these are available on Bloomberg.com © 2025 Bloomberg LP