Denmark

The latest forecast from the Danish Energy Agency expects PV to reach 7,5 GW by 2025 and more than 12 GW by 2030 and 18 GW by 2035. These figures are periodically revised. By the end of 2025 the installed capacity was app. 6.5 GWp

The main potential for deployment of PV in Denmark has traditionally been identified as building applied or integrated systems. However, the number of ground-based centralized PV systems in the range of 50 MW to >200 MW has been growing. Mostly, the projects are based on commercial PPAs or providing power to the actual market price (Nordpool).

Net-metering for privately owned and institutional PV systems was established in 1998, and is still existing, however with consequent limitations and restrictions.

In 2025, the BAPV solar industry continued the decline from 2024 in the activities. This can, among other things, be explained by rising interest rates and low electricity prices. Another element is that the government has reduced the tax for private households from 12 EUR¢/kWh to 0.11 EUR¢/kWh by January 1^st  2026.

Furthermore, rising costs for grid connection and long municipality and utility approval time negatively impacted the market. This contributed to the fact that the competition between the actors intensified for the realized projects.

Despite the more difficult conditions, the accumulated installed capacity reached over 6.5 GWp in 2025 due to increased installed capacity for utility-scale projects.

To promote the green transition, the parliament has started negotiations with the purpose reducing the bureaucracy for municipalities and other public institutions if they want to install PV systems. It is also possible to continue the depreciation basis for industrial and commercial facilities to 108% in 2026. Customers can lease or obtain other forms of third-party financing. Obtaining tax deductions for the assembly work is possible for private installations. For solar installations on residential properties over 2 floors, it will be possible to apply for support for the project.

The government is expected to designate areas for large utility scale projects to promote the approval process. These areas will especially be areas with low-lying soil, where the CO2 emission is high due to drainage channels and drains.

Because of the reasons mentioned above, the government has now indicated that the ambitions and targets for the green transition will be revised, and some kind of public guarantee will be considered. Until now, nothing has been decided.

Innovation Fund Denmark supports early-stage R&D (TRL 1-3). EUDP, GLDK, MUDP, and GUDP support development and demonstration (TRL 4-8). EIFO and the EU Innovation Fund support marked introduction (TRL 9).

The Energy Technology Development and Demonstration Programme (EUDP) under The Danish Energy Agency

funds work by enterprises and universities on demonstration of new green energy technologies. The program can support PV and every year different PV related projects are supported. The R&D program, as well as the ongoing and ended PV-related projects, can be found on the EUDP webpage.

The strategic innovation topics in the EUDP program are:

1. More green electricity – and for multiple purposes
2. Energy efficiency
3. Passenger transport and light goods transport
4. Heavy transport and large scale P2X
5. Heat and heat storage
6. Green process energy
7. Flexible electricity use, grid expansion and digitalization
8. CO₂ capture, utilization and storage

ELFORSK – Danish Energy Association

ELFORSK supports projects that ensure a more efficient use of electricity at the end-users. The projects are located in a wide range within the value chain from applied research through development forward to deployment.

Innovation Fund Denmark, under the Ministry of Education and Research creates a framework for entrepreneurs, researchers and businesses so they can develop innovative and viable solutions to society’s challenges.

The increase in installed capacity was due to an increase in utility-scale projects. The overall market for BAPV slightly decreased compared to 2024, with some reduction in the commercial and industrial sector.

The electricity consumption in 2025 was 40.45 TWh, a 5 % increase compared with 2024. Almost 85% of the electricity was covered by renewable energy, including biogas and sustainable biomass, whereas solar covered 11%. On a national level, the average CO₂ emissions of a kWh used was 64 g per used kWh.

The yearly average electric price was 0.61 DKK/kWh, peaking at 58.18  EUR¢/kWh on January 20th, 2025, between 5 PM and 6 PM. On the 21st of June, between 2 – 3 PM, prices were negative with 2.55 EUR¢/kWh. Due to the low prices in peak production for solar, the business case is under pressure. The foreseen electrification of fossil fuels is progressing more slowly than expected, and there is a lack of flexibility in the system for real major time shifting of consumption.

The Danish PV Association established late 2008 with approximately 60 members has provided the emerging PV industry with a single voice and is introducing ethical guidelines for its members. A few PV companies producing tailor-made modules such as windows-integrated PV cells can be found. A Li-Ion and a vanadium redox flow battery (VFB) manufacturer are now engaged in the PV market and offering storage solutions. A few companies develop and produce power electronics for PV, mainly for stand-alone systems for the remote-professional market sector such as telecoms, navigational aids, vaccine refrigeration and telemetry. Many companies are acting as PV system developers or integrators designing, developing and implementing PV systems for the home market and increasingly at the international level. Danish investors have entered the international PV scene on a rising scale acting as international PV developers/owners of large-scale PV farms. Some of the members have activities inside and outside Denmark.

New grid compliance requirements from the Danish TSO now challenge many PV companies and suppliers of PV inverters since the requirements are different from those seen in other countries. This is disturbing in the market and causing delays in the implementation of all sizes of projects. Grid constraints is seen on both DSO and TSO level causing delays for the connection of both production and consumers to the grid.

Battery storage is becoming a very important part of both new and existing PV systems. A combination of price reductions for batteries and very low electricity prices in some hours has improved the business case for these systems. Larger MW-scale systems and smaller storage systems collected in clusters are seen delivering ancillary services to the TSO through aggregators.