September 2, 2026 — Europe’s expanding solar power capacity is delivering significant financial benefits by reducing reliance on imported fossil fuels amid continued geopolitical tensions and volatile energy prices.

According to SolarPower Europe, solar PV is helping the European Union avoid billions of euros in fossil fuel import costs. In 2026 alone, EU solar generation is expected to avoid tens of billions of euros in natural gas imports, depending on gas price developments.

The benefits have accelerated during the summer, as higher solar generation coincided with rising fossil fuel prices. At the same time, heatwaves and droughts reduced the efficiency of some thermal power plants, while low reservoir levels affected hydropower generation and reduced cooling water availability impacted nuclear power output.

The combination of solar power, energy storage and other flexibility solutions can help reduce electricity price volatility by shifting renewable generation, shaving peak demand and limiting the influence of gas prices on power markets.

SolarPower Europe CEO Walburga Hemetsberger emphasized that Europe’s dependence on imported oil and gas leaves the region vulnerable to geopolitical disruptions and price shocks. Accelerating domestic renewable power generation is therefore increasingly viewed as a strategic priority for European energy security.

As Europe continues to expand solar, storage and electrification across transport and heating, renewable energy is expected to play an increasingly important role in reducing fossil fuel imports, lowering energy costs and strengthening Europe’s energy independence.