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Global Solar PV Market Report

Key Regional Markets


Solar PV Capacity


GDP (Current Prices) USD (2022)


GDP Growth Forecast (constant prices) (2023-2027)
USD ($)
Country Credit Rating (S&P)
Renewable Energy capacity (2022)
Solar PV Share in Renewables (2022)
Renewable Energy Target
Zero-emissions sources account for 74% of the installed capacity and cover around 73% of Poland’s electricity demand by 2040
Lately, Poland has demonstrated significant growth in its solar energy capacity, owing to a growing adoption of the technology and corporate demand, helped by favourable policy regimes. As a result, in 2022, Poland emerged as Europe’s third-biggest solar market. However, its renewable share in the power mix is still insufficient to attain the 2040 target of an emission-free electric system that has a significant percentage of energy generated from fossils and gas. To accelerate the growth of solar energy in Poland, the government has implemented effective policies at both the residential and utility-scale levels, creating an environment conducive to private investments in the solar sector.


  • Significant progress towards a shift to enewable energy through fiscal support in terms of subsidies, tax benefits and revised clean energy targets,
  • The strong PPA activity has enhanced the competitiveness of the solar market, with unsubsidized projects leading the way


  • Net metering scheme has hurdled capacity installation growth and is expected to halt installation by prosumers further
  • Undersubscribed auction ignited by the volatile energy prices and changing regulatory environment

Renewable Energy Mix

Source: IRENA Renewable Capacity Statistics April 2023
Solar energy has become the primary driver of renewable energy growth in Poland, comprising 53% of the renewable energy mix in 2022. This remarkable increase is in stark contrast to the minimal contribution it made in the earlier part of the decade. Over the past five years, the solar energy sector has seen a cumulative growth rate of 108%, largely fueled by the widespread adoption of home solar installations backed by favourable policy support. In line with solar, wind accounts for 38%, and Renewable hydropower and Bioenergy stand at 5%. Despite such contributions towards a green economy, Poland is still vastly reliant on coal for its power generation, and renewable energy accounts for only 36.2% of the total electricity mix (IRENA). This showcases the urgent need for a strong policy-level push to repel the contribution of coal by 2040.

Installed Capacity: Status and Trend

Trend in Installed Solar PV Capacity

Trend in Installed Onshore Wind Capacity - Denmark

Source: IRENA Renewable Capacity Statistics April 2023

The solar PV sector in Poland has been recording an exponential growth in capacity addition since 2018, with a CAGR of 92%, taking the cumulative installed capacity to over 11GW by the end of 2022, where distributed- generation PV systems account for around 9GW and ground-mounted solar plants contribute c.3GW. The Polish Government engineered this exponential growth with increased regulatory backing that stimulated sectoral activity, as even during the pandemic, the country recorded remarkable numbers in installations.

The main contributor causing this steep increase is the residential prosumers due to financial assistance and the government’s net-metering scheme for micro-installations.

Demand Drivers

Despite coal’s prolonged dominance, Poland has made significant progress toward a shift to renewable energy buoyed by fiscal support in terms of subsidies and tax benefits and revised clean energy targets. As per the 2023 updated “Energy Policy of Poland until 2040”, the Polish Ministry of Climate has unveiled the third scenario, mentioning that zero-emissions sources should account for 74% of the installed capacity and cover around 73% of Poland’s electricity demand by 2040, which signifies a substantial increase over the previous energy policy of 23% of renewable energy sources in power generation by 2030.

Solar, as the leading renewable energy source, has a crucial role to play considering its substantial irradiation potential in Poland. On the policy side, a notable amendment was brought in early Q22022, as the net-metering system was replaced by a net-billing system, whereby the amount of electricity injected and retrieved from the grid is balanced in an hourly settlement for micro installations. This modified regime incorporates better dimensioning of PV installations and investments in additional equipment like heat pumps and battery storage systems to enable the use of surplus solar energy. Another regiment, the Mój Prąd (My Electricity)

scheme was remodified at the end of Q42022 to provide additional benefits to rooftop solar and energy storage systems. Now residential rooftop solar installation can benefit from the 50% increase in subsidy from the previous PLN4,000 and storage installations can enjoy more than 2x increase in rebates of the prior PLN7,500.

Poland has not only focused on supporting small-scale PV systems but has also taken significant steps to promote utility-scale solar projects. In 2022, the Polish Council of Ministers introduced a new auction scheme, recognizing the success of auctions in driving the utility-scale solar market. The government plans to allocate around 9GW of new solar capacity in procurement exercises to be held up to  2027.  However,  Russia’s  invasion  of  Ukraine  and  the related energy crisis resulted in a disappointing uptake in the latest auction, causing it to be minorly unsubscribed, as in the Q42022 renewables auction, only 336MW of solar capacity could be awarded from a planned allocation of 486MW. Despite this setback, the series of auctions scheduled until 2027 will continue to provide opportunities for Poland to fulfill its climate commitments.

Market Opportunity

With the advent of the geopolitical issue and pressure of decarbonization, the Polish government has been attempting to deploy investments from international institutions to assist the renewable industry. In 2022, the European Bank of Reconstruction and Development (EBRD) made significant investments of approximately €792 million in Poland’s green projects. Out of this funding, around €126 million was directed towards renewable energy developers, with €45 million specifically allocated for solar projects. These investments are aimed at enhancing Poland’s energy security by promoting the development of sustainable alternatives to Russian gas.

Financial aid provided by international institutions is an indication of the attractiveness of the Polish solar sector, which has resulted in rampant activity taking place in recent times. In association, the Polish government publicized in Q12023 the launch of a PLN1 billion to support investments in renewable energy sources and energy storage in rural areas. Under the same, farmers and energy cooperatives can seek co-financing grants for renewable installations as a subsidy of a maximum of PLN20 million or a loan of up to PLN25 million. Also, financial assistance provided by the state-owned Polish Development Fund has enabled Polish renewable energy investor Lewandpol Group to secure a loan worth PLN90 million for a 200MW solar and wind energy project. Such aids instigate investors to implement ambitious energy projects to accelerate the green transition.

The strong PPA activity, especially due to the higher demand from the corporate sector, has enhanced the competitiveness of the solar market in Poland, with unsubsidized projects leading the way. Notably, Poland’s largest solar plant, the 204MW solar park in Zwartowo by Goldbeck Solar, went online in September 2022. The project was able to secure financing with an intelligent combination of CfD, PPA and merchant revenues. In another notable development, Qair Polska signed a PPA to supply 2TWh of renewable energy from its wind and solar plants to a big international company operating in Poland. The company is negotiating contracts with leading brands, which would grow its portfolio to 5TWh.

Moreover, as energy and raw material prices are soaring, Poland is focusing on self-sufficiency to reduce supply- chain bottlenecks, such as in the efforts of companies like the Unimot group, which is actively tripling its PV manufacturing capacity. This can drive substantial investments in the sector.


Source: BNEF Global PV Market Outlook

As per BNEF forecasts solar PV builds are expected to rise sharply in 2023 and maintain a steady pace thereafter. 

This growth is attributed to several factors, including the increased production of in-house solar PV modules, the expanded use of floating solar projects, and the potential replacement of coal plants with renewable energy sources.

However, there are quite a few downsides to rapid growth. One such is the country’s key deployment scheme of net metering, which after the transformation, has hurdled capacity installation growth and is expected to halt installation by prosumers further. Moreover, the freezing of electricity prices hurts residential PV installation more. On the contrary, a growing demand on the C&I side could be recorded as the electricity prices have not been frozen for them, and companies are pressured to decarbonize under RE100 initiatives. Therefore, the C&I solar segment stands ready to pick up the slack considering the prospects for healthy investments.

Despite uncertainties due to regulatory altercations, utility-scale projects can boom as market prices march towards recovery. However, large power grid investments are needed to enhance the capacity of the grid network to accommodate new utility- scale PV capacities. Another concerning factor is the undersubscribed auction ignited by the volatile energy prices and changing regulatory environment. This, however, has made the PPAs more attractive, which facilitates the merchant solar segment.

In summary, the solar sector has experienced impressive growth in Poland’s renewable energy mix. However, it will require a coordinated effort from the public, private sector, and local communities for the sector to play a decisive role in Poland’s energy transitions.