Europe | Solar Holds Strong Amid Energy Crisis, but Policy Support Weakens

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Solar power once again proved its value when Europe’s energy system came under pressure during the first half of 2026. As fossil fuel prices surged and heatwaves drove up power demand while putting pressure on conventional power plants, solar delivered record levels of affordable energy, becoming Europe’s single largest source of electricity in June. Solar has also saved the EU more than EUR 30 billion in gas imports for power generation in the six months since the start of the Middle East conflict. Yet despite these benefits, the EU is still heading for a slight contraction in solar deployment this year due to weakening policy support, according to SolarPower Europe's.

Preliminary data indicates that the EU solar market grew slightly in the first half of 2026 compared to the same period last year. The renewed fossil fuel crisis strengthened the business case for solar, supporting demand across several Member States. While this has improved the outlook for 2026, a slight market decline is still expected compared with 2025.

Solar deployment continues to be held back by weakening policy support, regulatory uncertainty, insufficient flexibility and growing grid constraints.

Walburga Hemetsberger, CEO of SolarPower Europe, said: "The lesson from the summer could not be clearer: when fossil fuel prices rise, when heatwaves hit, when Europe needs affordable, home-grown energy, solar delivers. Yet, instead of strengthening the conditions for further solar growth, many governments are unplugging support and increasing uncertainty. Europe should not need an energy crisis to make the case for solar, and it should certainly not weaken the conditions for solar investment in the middle of one. Policymakers must now focus on the fundamentals: grids, storage, flexibility and stable investment frameworks.”

Since the start of the Middle East conflict on 1 March 2026, solar PV has generated 282 TWh of electricity across the EU. The report estimates that this avoided more than EUR 30 billion in gas imports for power generation. That is around EUR 164 million per day, or more than EUR 1 billion per week.

Solar also played an increasingly important role in safeguarding Europe’s energy security this summer. For the second consecutive year, solar supplied more than 20% of EU electricity generation in May, June and July. In June alone, solar reached a record 25% share, becoming the EU’s largest source of power for the month.During a summer marked by fossil fuel price volatility and extreme heatwaves, solar also proved its resilience when other energy sources came under pressure. Higher temperatures increased the demand for air conditioning, while warmer rivers and low water levels reduced output from some nuclear and hydropower plants. When the system was under strain, solar delivered abundant electricity, helping maintain security of supply and keep power prices in check. Yet, despite the facts and figures, the future remains uncertain. The weakening policy environment is already visible across several of Europe's key solar markets. France has further reduced support for rooftop solar. In Czechia, changes to the New Green Savings Programme have weighed heavily on residential demand. Germany is now debating reforms that would reduce support for new rooftop systems from 2027.

At the same time, regulatory uncertainty and grid bottlenecks are making investment decisions more difficult across the EU. The challenges of integrating Europe’s growing solar fleet are also becoming increasingly visible. Several markets are experiencing rising curtailment, declining solar capture rates, more frequent negative-price periods and sharp evening price peaks as investment in grids and flexibility fails to keep pace.

Maximising the benefits of solar now requires more than solar deployment alone. As solar becomes a central pillar of Europe’s energy system, investment in storage, electrification, flexibility and grid infrastructure must scale rapidly. Without faster progress in these areas and more stable policy and regulatory frameworks, the resilience demonstrated in 2026 will be difficult to translate into the sustained growth required to meet Europe’s 2030 solar targets. Under current market and policy conditions, the EU remains off track to meet its 2030 solar target.