MANY MINDEDEU Solar Expansion Avoids €30 Billion in Gas Costs During Energy Volatility
The European Union deployed 33.8 gigawatts of solar photovoltaic capacity during the first half of 2026, representing a 1.9% increase from the same period in 2025. This expansion—driven primarily by utility-scale projects (56%) and rooftop installations (44%)—helped solar power meet over 20% of the EU’s electricity demand in May, June, and July 2026, reaching 25% of demand in June and becoming the primary electricity source that month. The solar generation avoided an estimated €30 billion in gas import costs for electricity generation during the six months following the Middle East conflict escalation starting March 1, 2026. This translates to more than €1 billion per week in savings during that period.
The expansion directly reduces the EU’s reliance on fossil fuels during energy volatility, lowering electricity costs for consumers through avoided gas imports. Germany and Spain were the largest solar markets, while France, Italy, Poland, Romania, and Greece showed year-on-year growth. However, the Netherlands, Czechia, Belgium, and Hungary fell short of their 2025 installation targets.
What to watch: SolarPower Europe projects 68.1 gigawatts of new capacity for 2026—a 2.1% decline from 2025—but this figure is subject to revision. Reduced policy support, regulatory uncertainty, and grid constraints remain key risks to continued growth. The €30 billion gas cost savings figure is an estimate and may vary with actual grid data, while the 2026 projection range spans 62 gigawatts (low) to 74.1 gigawatts (high).
Source: pv magazine