Bulgaria installed 1,416 MW of new solar capacity last year, extending its run of annual additions above 1 GW to a third straight year and raising total installed solar capacity to 5,984 MW, according to data from the ENTSO-E Transparency Platform.
Growth was led by ground-mounted utility-scale projects, which represented about 90% of new capacity. This expansion was fueled by available land, strong developer interest, improved financing access and the rising competitiveness of solar, with many projects now moving forward without subsidies. Local and international banks have supported a large pipeline of projects reaching financial close or construction over the past 18 months.
Energy storage is becoming a core element of the market. Developers are rolling out standalone batteries and pairing storage with new and existing solar plants to manage price cannibalization and declining electricity prices. These systems are expected to reduce price volatility and strengthen grid flexibility.
Among the major projects commissioned last year was the first phase of the Tenevo hybrid project, combining 315 MW of solar and 760 MWh of storage, with a second phase planned this year. Another key development is the Selanovtsi hybrid facility in the Vratsa region, which links 59.8 MW of solar with 107.3 MWh of storage. Bulgaria also commissioned one of the EU’s largest standalone battery installations next to a 107 MW solar plant.
The commercial and industrial (C&I) segment continues to expand as higher electricity prices encourage companies to invest in self-consumption systems, often paired with batteries. Residential solar, however, remains limited due to regulatory complexity and weak incentives. Household electricity prices are still regulated and account for about 40% of national demand, with full market liberalization seen as key to unlocking rooftop solar and storage.
Bulgaria is heading toward a potentially record year in 2026. Around 2.5 GW of solar projects are under construction or at advanced stages and are expected online by the end of that year. The storage pipeline is also robust, with about 15 GWh projected to be commissioned by mid-year, supported by the National Recovery and Resilience Plan.
At the same time, policy risks are emerging. Taxes and recycling fees on solar panels and batteries have increased sharply and are now five to ten times higher than in comparable EU countries. These higher charges raise project costs and could slow new investments unless they are aligned more closely with EU norms.
