Portugal has reached a new milestone in renewable energy production. In January 2025, 72% of the country’s electricity demand was supplied by renewable sources, with wind and hydro leading the way.
At one point, Portugal generated 10,845 megawatts (MW) of clean energy, breaking previous records (REN).
This achievement highlights Portugal’s continued investment in sustainability, but one area remains underutilized—solar power. Currently, solar energy only accounts for 5% of the country’s electricity production, despite the Algarve’s ideal conditions for harnessing the sun’s power.
Why the Algarve is ideal for solar energy
Unlike northern Portugal, where wind and hydro dominate, the Algarve enjoys over 300 sunny days per year, making it one of the best locations in Europe for solar energy production.
More sun, greater savings
With such high solar exposure, homeowners and businesses in the Algarve can generate a significant amount of electricity, reducing their reliance on the grid and lowering energy costs. Given the continued rise in electricity prices, investing in solar energy provides a long-term financial benefit.
A smart investment for homeowners and holiday rentals
Many property owners in the Algarve either rent out their homes or live in them seasonally. Installing a solar system allows them to generate electricity even when they are not there, reducing costs and potentially feeding excess power back into the grid. Solar installations also add value to properties, making them more attractive to buyers and renters.
Energy independence and future-proofing
Portugal is actively expanding its investment in solar battery storage, ensuring that homeowners will soon have more efficient ways to store and use their solar energy. Those who install solar panels today will be well-positioned to take advantage of these advancements in the near future. Learn about solar batteries in Algarve.
Rising electricity costs in Portugal
Between 2019 and 2024, residential electricity prices in Portugal have increased significantly. In June 2019, the average price was €0.2150 per kilowatt-hour (kWh). By June 2024, this had risen to €0.2426 per kWh, representing an increase of approximately 12.8%.
This rising cost highlights the financial burden on households and reinforces the economic advantages of investing in solar energy, especially in sun-rich regions like the Algarve. (country economy)
The best solar panels for the Algarve’s climate
Not all solar panels perform equally well in high temperatures. In the Algarve’s hot climate, it is essential to choose high-quality panels that maintain efficiency even in extreme conditions.
Some of the most reliable Tier 1 solar panel brands available today include:
- Trina Solar – A cost-effective option with strong warranties and reliable output.
- JA Solar – Known for high efficiency and excellent performance in warm climates.
- Jinko Solar – One of the world’s largest solar manufacturers, offering durable and high-performance panels.
These panels are specifically designed to handle high temperatures without significant efficiency loss, which is crucial for installations in the Algarve. Most of them also come with 25-year warranties, guaranteeing long-term performance and reliability. Find high efficient solar panels in Algarve.
Now is the best time to invest in solar energy
With Portugal setting new records in renewable energy production, the Algarve is poised to become one of the leading regions for solar adoption. Whether for a private home, rental property, or business, solar energy provides a clear financial and environmental advantage.
For those considering an investment in solar, now is the time to take action. With falling installation costs, rising electricity prices, and government incentives, installing solar panels today can lead to significant long-term savings.
For more information on how solar energy can benefit your home and how much you can save with solar, contact a trusted local provider for a consultation. Click here to calculate your savings
Sources:
Renewable Energy in Portugal – ren.pt
Solar Energy Potential – storymaps.arcgis.com
Solar Panel Brands – energypedia.info
Voltaicos - Solar Panels & Batteries in Algarve
Intro photo courtesy of Depositphotos.com
