In 2025, Latvia’s solar capacity is poised for significant growth, spurred by a groundbreaking international financing initiative aimed at accelerating the country’s shift to clean energy. The nation’s solar sector has been expanding rapidly, with installed capacity projected to increase from 0.32 GW in 2025 to 0.47 GW by 2028. This expansion is a core component of Latvia’s National Energy and Climate Plan, which targets a 50% share of renewables in the country’s energy mix by 2030, with an ambitious 1.5 GW allocated specifically to solar energy.
Latvia’s Solar Sector: Growth and the Future of Latvia solar capacity
In 2025, Latvia is doubling down on its solar ambitions. The impressive growth trajectory is driven by a clear national strategy to enhance energy security and meet EU climate goals. You can explore a detailed breakdown of the market in the [Latvia Solar Panel Manufacturing | Market Insights Report].
Despite this progress, the sector faces notable challenges. A primary hurdle is the country’s reliance on solar imports, with nearly 100% of its solar cells and modules currently sourced from abroad. This highlights a critical gap in local production capabilities and exposes the supply chain to global market volatility, particularly concerning the availability of essential [solar panel raw materials]. Furthermore, a 2024 European Union (EU) report emphasized the need for Latvia to reduce administrative burdens and improve access to affordable financing, especially for small and medium-sized enterprises (SMEs) eager to adopt solar power.
International Financing: A Game-Changer for Latvia solar capacity
The international financing initiatives launched in 2025 are designed to directly address these obstacles. A prime example is the energy company Sunly securing nearly €85 million in international financing to develop four major solar parks, adding a substantial 329 MW of capacity. This investment is a clear vote of confidence in Latvia’s renewable energy future.
This funding is complemented by a €24.2 million grant from the EU’s Recovery and Resilience Facility. This grant will support the widespread deployment of solar energy, funding the installation of 50,000 solar panels on residential and commercial rooftops and fostering the development of new solar farms in rural areas, like the [Latvia solar farm: Impressive 74 MW Project Advances].
To tackle import dependency, the initiative also aims to bolster Latvia’s domestic supply chain. The government has announced plans to establish a local solar module manufacturing facility. This move could position the country as a regional player, potentially exploring specialized technologies, as seen in the strategic case for [Bifacial Solar Manufacturing in Latvia: A Scandinavian Case]. Understanding the [basics of solar panel manufacturing] is the first step in this ambitious journey toward self-sufficiency.
Impact on Latvia solar capacity and Energy Transition
This influx of capital and strategic focus is set to dramatically boost Latvia’s energy transition. The projected growth to 0.47 GW of solar capacity by 2028 represents a 47% increase from 2025 levels, putting the country firmly on track to meet its 1.5 GW target by 2030 and significantly reduce its reliance on fossil fuels.
Crucially, Latvia’s energy strategy extends beyond its borders. The country is collaborating on a new Baltic energy link with Lithuania and Germany. This interconnection will enhance regional energy security and grid stability, allowing Latvia to export surplus solar power. For consumers in Germany, this means access to a more diversified and greener energy supply from the Baltic region. This regional cooperation is vital, with neighboring countries like Lithuania also expanding their capabilities, as detailed in the [Lithuania Solar Panel Manufacturing | Market Insights Report].
Challenges and Opportunities for Latvia solar capacity
While the financing initiative is a major leap forward, challenges remain. Addressing the administrative hurdles for SMEs is paramount to democratizing solar adoption. On a broader scale, Latvia, like the rest of the EU, must navigate the complex challenge of securing critical minerals for renewable technologies, a topic covered extensively in the [Global Solar Report - PVknowhow.com].
However, these challenges are matched by significant opportunities. The development of local manufacturing, guided by an understanding of the complete [solar panel manufacturing process], can create skilled jobs and insulate the economy from supply chain disruptions. Furthermore, investment in energy storage solutions is a key growth area. Pairing solar installations with batteries will address the intermittency of solar power, improve grid reliability, and maximize the value of the energy generated.
Conclusion: The Future of Latvia solar capacity
The international financing initiative of 2025 marks a pivotal moment for Latvia’s solar sector. With robust financial backing, a strategic focus on local manufacturing, and enhanced regional cooperation, Latvia is well-positioned to achieve its renewable energy goals. As the nation continues to expand its solar capacity, it will not only secure its own energy future but also play an integral role in the EU’s collective effort to combat climate change and build a sustainable, clean energy economy.
For those looking to deepen their understanding of this growing industry, from production to deployment, consider enrolling in our comprehensive [free e-course] on solar panel manufacturing.
