Solar power emerged as a key source of electricity for Europe during the first half of 2026, as higher fossil fuel prices, extreme heat and pressure on conventional power generation highlighted the role of renewable energy in strengthening the region’s energy security.
According to SolarPower Europe’s EU Solar Market Update: 2026 Mid-Year Analysis, solar PV generated 282 TWh of electricity across the European Union since the start of the Middle East conflict on March 1, 2026. The report estimates that this generation helped avoid more than EUR 30 billion in gas imports for power generation, equivalent to around EUR 164 million per day or more than EUR 1 billion per week.
Solar also reached a record share of the EU’s electricity generation in June. It accounted for 25% of total electricity generation during the month, making solar the EU’s largest individual source of electricity. For the second consecutive year, solar supplied more than 20% of EU electricity generation in May, June and July.
The strong contribution came as Europe faced elevated energy system pressures during the summer. Heatwaves increased electricity demand for cooling, while warmer rivers and lower water levels affected the output of some nuclear and hydropower facilities. Against this backdrop, solar generation provided additional electricity during periods of high demand and helped limit pressure on the wider power system.
EU Solar Market Shows Early Growth but Full-Year Decline Expected
Preliminary data shows that the EU solar market expanded slightly during the first half of 2026 compared with the same period in 2025. The renewed volatility in fossil fuel prices improved the economic case for solar and supported demand in several Member States.
However, SolarPower Europe expects the EU solar market to contract slightly over the full year compared with 2025. The organisation attributes the weaker outlook to declining policy support, regulatory uncertainty, grid constraints and insufficient flexibility across European electricity markets.
SolarPower Europe CEO Walburga Hemetsberger said the recent energy crisis and summer heatwaves demonstrated the importance of affordable, domestically generated electricity, while calling for greater investment in grids, storage and flexibility.
Policy Uncertainty Weighs on Key Solar Markets
The report highlights growing uncertainty across several major European solar markets.
France has further reduced support for rooftop solar, while changes to Czechia’s New Green Savings Programme have affected residential solar demand. Germany is also considering reforms that could reduce support for new rooftop solar installations from 2027.
At the same time, grid bottlenecks and regulatory uncertainty are complicating investment decisions across the EU.
The rapid expansion of solar generation is also creating new system-integration challenges. Several European markets are experiencing increasing solar curtailment, declining solar capture rates, more frequent negative electricity prices and sharper evening price peaks.
These trends indicate that the expansion of solar generation is increasingly dependent on complementary investments in electricity networks, energy storage and demand-side flexibility.
Grids, Storage and Flexibility Key to Meeting 2030 Targets
SolarPower Europe said that continued solar deployment alone will not be sufficient to maximise the benefits of the technology as its role in Europe’s electricity system expands.
The organisation called for accelerated investment in grid infrastructure, battery storage, electrification and flexibility, alongside stable policy and regulatory frameworks.
Under current market and policy conditions, the EU remains off track to meet its 2030 solar deployment target. The report therefore highlights the need to address grid capacity, system flexibility and investment certainty if Europe is to convert the resilience demonstrated by solar in 2026 into sustained market growth through the end of the decade.
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