It offers practical guidance on developing photovoltaic (PV) projects, addressing regulatory and financial considerations, and highlights the benefits of integrating solar energy solutions into commercial real estate. In addition to examining trends in energy efficiency and decarbonization, the report includes country-by-country reviews, analyzing energy structures, solar capacity, and incentives specific to each CEE jurisdiction.

"Although the green agenda seems to have taken a back seat in 2024 due to disappointing industrial performance and political upheaval in Europe and overseas, the long-term trend of green transition in energy remains important. There is a clear tendency in CEE to move away from fossils and incorporate renewables in the electricity mix driven not only by sustainability but also by geopolitical imperatives. However, it is clear that there is still a long way to go in terms of electricity generation in CEE countries. In the region, fossil fuel sources still take up the lion’s share of the energy mix. This is particularly the case in Poland, where almost 80% of electricity comes from solid fossil fuels, natural gases, and oil products – despite the massive efforts made in previous years. Nuclear energy plays a vital role in Slovakia and in Hungary, also hydro is important in many countries, but solar capacities are expanding the most dynamically everywhere", stated Gábor Borbély, Director, Head of Research, CEE & Hungary, CBRE.

"For property owners, installing solar systems can help improve energy efficiency, reduce reliance on the grid, and mitigate the risks associated with rising energy costs. The integration of renewable energy sources such as rooftop solar is also becoming a valuable selling point for tenants who are increasingly seeking sustainable, energy-efficient spaces", said Lukas Hejduk, Partner, Head of CEE Real Estate Practice, CMS.

However, while the potential of rooftop solar is clear, integrating such solutions into commercial real estate comes with its challenges. The high upfront costs of installation, regulatory complexities, and the technical suitability of roofs can make it a daunting task for property owners and investors. "The solar solutions’ growth is creating a myriad of opportunities for commercial property owners to harness solar energy, reduce operational costs, and contribute to environmental sustainability. However, navigating the financial and regulatory landscape, including understanding incentives, securing financing, and ensuring compliance with zoning laws, can be a daunting task", added Hejduk. "On a practical level, developing a PV project is indeed quite a complex undertaking."

Despite these challenges, the region is witnessing strong growth in solar energy production, driven by both EU and national policies aimed at accelerating the green transition. As of 2024, Poland added over 8,000 GWh of solar capacity annually, while Hungary surpassed the EU average in solar energy production.

"Although the green agenda seems to have taken a back seat in 2024 due to disappointing industrial performance and political upheaval in Europe and overseas, the long-term trend of green transition in energy remains important", said Borbély. "There is a clear tendency in CEE to move away from fossils and incorporate renewables in the electricity mix driven not only by sustainability but also by geopolitical imperatives."

With rooftop solar presenting a unique opportunity for commercial real estate, property owners and investors who navigate the challenges effectively can capitalize on both financial and environmental benefits. As governments prioritize the expansion of renewable energy and as tenants increasingly demand sustainable spaces, rooftop solar systems are set to become a cornerstone of the CEE commercial real estate sector.