Sentiment among Europe’s solar buyers dropped to the lowest levels on record as component and module prices stabilised at the end of 2025.
This is according to the latest pv.index report from online solar marketplace sun.store, which published its analysis of European PV module prices and industry optimism for December 2025 last Friday. The report includes its PV Purchasing Managers’ Index (PV PMI), an assessment of optimism for the solar industry taken from sun.store users, of 62, the lowest figure reported since the launch of the pv.index report.
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The company notes that any PV PMI score of above 50 indicates a general sentiment that the market will grow in the coming months, so the figure of 62 does not suggest widespread negative sentiments in the industry. However, December’s PV PMI figure was four points lower than in each of the previous three months, and more than ten points lower than the all-time high of 73 reported in February 2025.
The report suggests that this decline has been driven by the seasonal slowdown in installations—the December 2024 PV PMI was lower than that of the previous month—and a “year-end budget exhaustion”. Sun.store notes that the five point year-on-year decline between December 2024 and December 2025 means that European solar in 2026 will begin with “a more conservative starting position” than in the previous year.
However, the report also notes that there was no significant disruption in average module price between November and December, suggesting that the decline in market sentiment is not necessarily tied to the financial performance of modules. The graph above shows how the PV PMI, in grey, has changed over the course of 2025, and that, between November and December, the prices of full black, monofacial tunnel oxide passivated contact (TOPCon) and monofacial passivated emitter rear contact (PERC) modules remained consistent.
Indeed, while back contact and bifacial TOPCon modules saw a month-on-month decline in average prices—with the latter reporting a 2% decline in price from the previous month, pushing its average price below €0.09/Wp (US$0.11/Wp) for the first time in the year, to €0.088/Wp—these price declines follow a trend established in previous months.
The report notes, however, that the €0.01/Wp difference between bifacial and monofacial TOPCon products is “unusually wide and difficult to explain through cost structures alone” as these results are “reversing the typical pricing logic”.
The report suggests that the cancellation, or postponement, of utility-scale and larger commercial solar projects in the latter half of the year, where bifacial modules are more commonly used, could have weakened demand for these products, driving costs down. Regardless, this is the largest price gap between the technology types since January 2025.
Demand for ‘higher-capacity systems’ shrinks inverter price gap
The inverter market, meanwhile, was less stable than the module market. The sun.store report notes that the average price of 1-15kW hybrid inverters fell 2% month-on-month, while the average price of inverters larger than 15kW increased by 4%. The same trend was observed for string inverters, with the smaller inverters seeing a 4% month-on-month price decrease, and larger inverters seeing a price increase of the same value, 4%.
This means that the price gap between smaller-scale and larger-scale inverters has shrunk, for both hybrid and string inverters, over the course of the year. Smaller hybrid inverters were the more expensive type at the start of the year, with a price difference of €34.5/kW, but this gap narrowed to €10.1/kW by December. The same trend is present for string inverters, where smaller inverters began the year €31.1/kW more expensive than larger inverters, but ended the year €19.1/kW more expensive.
The sun.store report suggests that “higher-capacity systems” benefitted from stable demand for larger inverters for use in the commercial and industrial (C&I) segment, which may have helped drive up the price of inverters of this scale.
The latest pv.index also assesses the most popular brands of inverters and modules across Europe; while Huawei completed its sixth consecutive month as the most popular brand of string inverters—and Sungrow was the second-most popular brand of such inverters for the third consecutive month—there was more disruption in the hybrid inverter space.
Deye took the top spot in December from previous holder Huawei, which dropped down to the number three spot, falling out of the top two for the first time since July. Sungrow moved into the second spot in December, completing a return to form that saw the company fall from second to fifth between July and September, and now back up to the top two spots in December.
PV Tech publisher Solar Media will host the 13th edition of the Solar Finance & Investment Europe event in London on 3 – 4 February 2026. This event annually attracts infrastructure funds, institutional investors, asset managers, banks and development platforms at the forefront of European renewables. For more details, visit the website.
