Norway Solar Power Market Outlook to 2031

The Norway solar power market reached approximately 903 MW of cumulative installed capacity by the end of 2025. The country added 117 MW of solar PV capacity during 2025, representing a 14.9% year-on-year increase in cumulative installed capacity. 

Market growth was driven by rising electrification across the transport and industrial sectors, increasing commercial rooftop installations, and growing adoption of battery energy storage systems (BESS).

The Norway Solar Power Market is witnessing steady growth as solar photovoltaic (PV) systems increasingly complement the country's hydropower-dominated electricity sector.

While lower electricity prices and seasonal variations in solar irradiation have moderated residential demand, favorable government policies, declining solar technology costs, and corporate sustainability initiatives continue to support market expansion. 

As Norway advances its decarbonization goals and strengthens distributed renewable energy generation, the solar market is expected to benefit from increasing investments in commercial and industrial applications, smart energy management solutions, and integrated solar-plus-storage systems.

Market Definition

The Norway Solar Power Market comprises the development, installation, operation, and maintenance of solar photovoltaic (PV) systems that generate electricity from sunlight across residential, commercial, industrial, and utility-scale applications in Norway. 

The market includes rooftop and ground-mounted PV installations, associated components such as solar modules, inverters, mounting structures, energy storage systems, and related engineering, procurement, and construction (EPC) services. 

It is driven by increasing electrification, decarbonization goals, declining solar technology costs, growing consumer interest in self-generation, and supportive government incentives. 

Despite Norway's strong reliance on hydropower, the solar sector is expanding as a complementary renewable energy source, particularly for distributed generation and hybrid energy systems. 

The market also encompasses investments, grid integration, digital monitoring solutions, and after-sales services that support the deployment and long-term performance of solar power assets throughout the country.

Current Scenario

Norway's solar power market is undergoing a gradual transition from a niche renewable technology to a more established component of the country's energy mix, although growth has moderated compared to previous years. 

The slowdown is primarily attributed to lower electricity prices, reduced residential demand, and evolving incentive structures, leading to a temporary decline in rooftop photovoltaic (PV) installations. 

At the same time, the market is witnessing increasing interest in battery energy storage systems, with many households and commercial consumers opting to pair solar PV with batteries to maximize self-consumption and improve energy resilience. 

Despite slower deployment, long-term market fundamentals remain positive, supported by Norway's ambitious climate targets, continued electrification of transport and industry, and rising corporate demand for renewable electricity.

Commercial and industrial (C&I) solar installations continue to expand as businesses seek to reduce energy costs and meet sustainability commitments. Norway also benefits from supportive regulatory frameworks, simplified permitting for distributed solar, and increasing participation in the broader European renewable energy transition. 

Although hydropower continues to dominate domestic electricity generation, solar PV is expected to play an increasingly complementary role by diversifying the renewable energy portfolio, improving energy security during dry hydrological years, and supporting decentralized clean energy generation. 

As battery adoption accelerates and module costs remain competitive, Norway's solar market is expected to regain stronger growth momentum over the coming years.

Drivers 

Growing Electrification and Rising Electricity Demand

Norway's transition toward an electrified economy is one of the strongest structural drivers supporting long-term growth in the solar power market. While the country already possesses one of the cleanest electricity systems globally, increasing electrification of transport, buildings, and industrial operations is steadily raising electricity demand, creating opportunities for distributed solar generation and battery storage. 

Total electricity consumption increased from 132.4 TWh in 2020 to 137.9 TWh in 2021, before moderating to 133.0 TWh in 2022 due to exceptionally high electricity prices. Demand recovered to approximately 134.8 TWh in 2023 and reached around 136.5 TWh in 2024, reflecting continued electrification across multiple sectors. 

Meanwhile, electricity generation totaled approximately 157.1 TWh in 2025, leaving a surplus for exports while also highlighting the growing need to diversify renewable generation sources beyond hydropower.

Norway remains the global leader in transport electrification. Approximately 89% of all new passenger cars sold in 2024 were battery electric vehicles (BEVs), increasing further to over 93% during the first half of 2025. 

This rapid EV adoption has significantly increased electricity demand for charging infrastructure and is expected to continue as Norway moves toward its target of an entirely zero-emission new passenger vehicle market. 

In parallel, energy-intensive industries-including aluminum, ferroalloys, chemicals, and Solar Powers-are electrifying production processes to reduce carbon emissions and comply with national and European climate policies.

The commercial and industrial (C&I) sector is responding by installing rooftop photovoltaic systems to reduce operating expenses, hedge against electricity price volatility, and achieve corporate sustainability objectives. 

Although hydropower accounts for nearly 88-90% of Norway's electricity generation, it is highly dependent on reservoir levels and seasonal precipitation. Solar PV provides complementary daytime generation, particularly during spring and summer when solar irradiation is highest and electricity demand from commercial facilities peaks.

The integration of battery energy storage systems (BESS) further enhances the value of solar by increasing self-consumption, reducing peak demand charges, and improving energy resilience.

Norway's long-term electricity demand is expected to continue rising as electrification expands across transportation, industry, green hydrogen production, and digital infrastructure. 

Consequently, solar power is increasingly recognized as an important supplementary renewable resource that can strengthen grid flexibility, diversify the country's renewable energy portfolio, and support its commitment to achieving climate neutrality by 2050.

Restraint

Seasonal Solar Irradiation and Long Winter Periods

Norway's geographical location at latitudes ranging from approximately 58°N to 71°N presents a significant challenge for solar power deployment due to pronounced seasonal variations in solar irradiation. 

While photovoltaic (PV) systems operate efficiently in cold temperatures, the country's long winters, limited daylight hours, and frequent snow cover reduce electricity generation for several months each year. 

In northern Norway, areas above the Arctic Circle experience the Polar Night, where the sun remains below the horizon for several weeks, resulting in virtually no solar generation during this period. Consequently, the annual capacity factor of solar PV systems in Norway is generally lower than in southern European markets.

Norway receives an average annual global horizontal irradiation (GHI) ranging from approximately 900-1,100 kWh/m² in southern regions to 700-900 kWh/m² in northern regions. In comparison, countries such as Spain and Italy receive more than 1,600-2,000 kWh/m² annually. 

As a result, the average specific PV yield in Norway ranges between 850 and 1,050 kWh per installed kWp per year, depending on location and system orientation. Although this is lower than many European markets, cooler operating temperatures improve module efficiency, partially offsetting the impact of lower solar irradiation.

The strong seasonal imbalance also creates challenges for project economics. Solar generation is concentrated between April and September, when daylight hours are longest, while electricity production declines sharply during winter when household electricity demand for heating is at its highest.

This mismatch increases dependence on the electricity grid or battery energy storage systems (BESS) to maintain reliable power supply.The growing adoption of battery storage reflects efforts to maximize self-consumption and improve the utilization of solar energy despite seasonal fluctuations.

Furthermore, snow accumulation on PV modules can temporarily reduce output if not removed, although the steep tilt angles commonly used in Norwegian installations help facilitate natural snow shedding. 

While seasonal irradiation constraints limit annual energy production compared to sunnier European markets, solar PV continues to complement Norway's hydropower-dominated electricity system by generating the highest output during spring and summer, when hydropower reservoirs can be conserved. 

Advances in high-efficiency PV modules, bifacial technology, and battery storage are expected to gradually reduce the impact of seasonal variability and improve the long-term economics of solar installations.

Market Segmentation

The Norway solar power market is segmented by technology, application, installation type, end user, and component, with solar photovoltaic (PV) technology accounting for virtually the entire market due to the absence of commercial concentrated solar power (CSP) projects. 

By PV Deployment, the market is divided into residential, non-residential & Utility segments, with the C&I segment emerging as the fastest-growing owing to increasing corporate decarbonization initiatives, rising electricity demand, and investments in rooftop solar systems.

Residential installations continue to represent a significant share of distributed solar capacity, although growth moderated during 2025 due to lower electricity prices and reduced investment returns. 

By installation type, rooftop solar dominates the market, supported by limited land availability for utility-scale developments and strong demand for self-consumption. The market is further segmented by components, including solar modules, inverters, mounting structures, battery energy storage systems (BESS), and balance-of-system (BoS) equipment. 

Battery-integrated solar systems are gaining market share as consumers increasingly adopt storage solutions to improve self-consumption and energy resilience. Norway's cumulative installed solar PV capacity surpassed 1 GW by the end of 2025, representing an increase of more than 30% compared with 2024. 

Market Opportunity

Norway's solar power market presents significant opportunities for solar module manufacturers, inverter suppliers, battery energy storage providers, EPC contractors, project developers, utilities, commercial and industrial (C&I) businesses, financial institutions, and technology providers. 

The country's ongoing electrification of transport and industry, increasing corporate sustainability commitments, and rising adoption of solar-plus-storage systems create sustained demand for distributed solar solutions. 

Businesses benefit from lower electricity costs and improved energy resilience, while utilities and grid operators benefit from a more diversified renewable energy mix. 

Technology providers and investors also gain opportunities through smart energy management systems, battery integration, and commercial rooftop installations as Norway continues to expand decentralized renewable energy generation and strengthen its long-term energy transition.

Recent Trends and Developments

• Battery-integrated solar systems are gaining momentum, with residential and commercial consumers increasingly pairing rooftop PV with battery energy storage to maximize self-consumption and reduce reliance on the grid, even as standalone solar installations slow.

• Commercial and industrial (C&I) rooftop solar installations continue to expand, driven by corporate decarbonization goals, energy cost optimization, and ESG commitments, making the C&I segment the primary growth engine of Norway's solar market. 

• High-efficiency PV technologies and smart energy management solutions are witnessing increased adoption, improving system performance under Norway's climatic conditions and supporting the country's transition toward decentralized, digitally managed renewable energy systems. 

• In June 2026, Otovo ASA completed the acquisition of SunSystem Technology, expanding its operations & maintenance (O&M) business across 14 U.S. states and strengthening its recurring service revenue model.

• Otovo ASA and Green Panel formed a joint venture named Otovo GP in March 2026, a 50:50 joint venture to provide installation, logistics, and maintenance services across multiple European countries, including Norway.

• In March 2026,Lyra Energy was a South African renewable energy joint venture platform owned 50% by Scatec ASA alongside partners Standard Bank and Stanlib, focused on developing commercial solar projects like the 255 MW Thakadu plant.

• Otovo ASA partnered with Energismart Norge AS in December 2025 to voluntarily transfer about 5,000 residential solar installations from the bankrupt installer Solcellespesialisten to Otovo's maintenance program, Otovo Care.

The new report from Blackridge Research on the Norway Solar Power market provides comprehensive qualitative and quantitative analyses along with deep market insights.

What Do We Cover in the Report?

Solar Power Market Drivers & Restraints 

The study covers all the major underlying market dynamics that help the market develop and grow, as well as the factors that constrain Norway’s market growth.

The report includes a meticulous analysis of each factor, explaining the relevant qualitative information with supporting data.

Each factor's respective impact in the near, medium, and long term will be covered using Harvey balls for visual communication of qualitative information and will function as a guide for you to analyze the degree of impact.

Solar Power Market Analysis

This report discusses the market overview, the latest updates, critical commercial developments and structural trends, and government policies and regulations. 

Solar Power Market Size and Demand Forecast

The report provides the Norway Solar Power market size and demand forecast until 2031, including year-on-year (YoY) growth rates and CAGR.

Solar Power Industry Analysis

The report examines the critical elements of the Solar Power supply chain, its structure, and the participants.

 The report uses the PESTEL framework to assess the Solar Power industry's competition and profitability.

Solar Power Market Segmentation & Analysis

The report dissects the Norway Solar Power market into various segments based on type (Hyperscale Solar Powers, Enterprise Solar Powers, and Other Solar Powers).

A detailed summary of the current scenario, recent developments, and market outlook will be provided for each market segment.

Further, Solar Power market share, size, and demand forecasts will be presented, along with various drivers and barriers for individual market segments.

Effective market segmentation enables you to identify emerging trends and opportunities for long-term growth. Contact us for "bespoke" market segmentation to better align the research report with your requirements.

Key Company Profiles

This report presents detailed profiles of key companies in the Solar Power industry, such as Statkraft AS, Norsk Hydro ASA, Equinor ASA, Scatec ASA, Cloudberry Clean Energy ASA, Aneo AS, Å Energi AS, Otovo ASA, etc. In general, each company profile includes an overview of the company, relevant products and services, a financial overview, and recent developments.

Competitive Landscape

The report provides a comprehensive list of notable companies in the market, including mergers and acquisitions (M&As), joint ventures (JVs), partnerships, collaborations, and other business agreements related to the Solar Power project.

The study also discusses the strategies adopted by leading Solar Power and AI companies.

Executive Summary

The Executive Summary will be packed with charts, infographics, and forecasts. This chapter summarizes the report's findings crisply and clearly.

The report begins with an executive summary chapter and ends with conclusions and recommendations.