In a significant advancement for renewable energy, Bulgaria has added 1,416 MW of new solar capacity in the past year, marking the third consecutive year of annual additions exceeding 1 GW. This expansion has brought the total installed solar capacity in the country to 5,984 MW, as reported by the ENTSO-E Transparency Platform.
The majority of this growth can be attributed to ground-mounted utility-scale projects, which accounted for approximately 90% of the new installations. Factors driving this expansion include the availability of land, heightened interest from developers, improved access to financing, and the increasing competitiveness of solar energy. Notably, many projects are advancing without the need for subsidies, supported by both local and international banks that have facilitated a robust pipeline of projects reaching financial closure or entering construction phases over the last 18 months.
Energy storage is becoming increasingly integral to Bulgaria’s energy landscape. Developers are implementing standalone battery systems and integrating storage solutions with both new and existing solar plants. These initiatives aim to mitigate price cannibalization and address declining electricity prices, ultimately enhancing grid flexibility and reducing price volatility.
Among the notable projects commissioned last year is the first phase of the Tenevo hybrid project, which combines 315 MW of solar capacity with 760 MWh of storage. A second phase is anticipated this year. Additionally, the Selanovtsi hybrid facility, located in the Vratsa region, integrates 59.8 MW of solar power with 107.3 MWh of storage capacity. Furthermore, Bulgaria has also introduced one of the EU’s largest standalone battery installations adjacent to a 107 MW solar plant.
<pThe commercial and industrial (C&I) sector is witnessing growth as rising electricity prices motivate companies to invest in self-consumption systems, frequently coupled with battery storage. Conversely, residential solar adoption remains constrained due to regulatory hurdles and insufficient incentives. Currently, household electricity prices are regulated and constitute about 40% of national demand. Experts suggest that achieving full market liberalization would be crucial for unlocking potential in rooftop solar and storage systems.
Bulgaria appears poised for a potentially record year in 2026, with approximately 2.5 GW of solar projects either under construction or at advanced stages expected to come online by year-end. The energy storage pipeline is equally promising, with around 15 GWh anticipated to be commissioned by mid-year, bolstered by support from the National Recovery and Resilience Plan.
However, emerging policy risks pose challenges to this growth trajectory. Recent increases in taxes and recycling fees on solar panels and batteries have surged dramatically, now ranging from five to ten times higher than those in comparable EU nations. These elevated costs could impede new investments unless they align more closely with EU standards.
