EU solar power saved €30bn on gas imports in 2026
SolarPower Europe reports EU solar generation displaced €30bn in gas imports in 2026, shielding consumers from price spikes worsened by the Iran War and
Solar power saved the European Union €30 billion in avoided gas import costs during 2026. The savings provided a critical buffer against price shocks amplified by the Middle East conflict and record summer heatwaves, according to analysis from the trade association SolarPower Europe.
The Energy and Climate Intelligence Unit (ECIU) found the ongoing crisis added significant costs, with every continuing week of conflict imposing an extra £190 million in excess charges on UK energy bills alone. Fossil fuel prices surged from the outset. Simultaneously, the summer's extreme heat decreased the efficiency of thermal and nuclear power plants due to low cooling water availability, further pushing prices upward.
Solar's Role During Heatwaves
Solar output across Europe rose by 17% during the heatwaves of June and July 2026. Energy think tank Ember provided this data. The additional generation was perfectly timed to cover increased grid demand for air conditioning.
National solar generation increases during the heatwave period were significant, as shown below:
| Country | Increase in Solar Output |
|---|---|
| Italy | 28% |
| Hungary | 23% |
| France | 14% |
| Spain | 13% |
Peak electricity demand also jumped, by up to 17% in Hungary, 14% in Italy, and 11% in Spain.
Quantifying the Financial Shield
The financial benefit of this solar generation was substantial. In just the first two weeks of the Iran War, €1.9 billion in gas import costs were avoided. SolarPower Europe estimated the total annual savings for 2026 could reach €67.5 billion if gas prices climb higher. Their projection for cumulative savings from 2026 to 2030 totals €170 billion.
Walburga Hemetsberger, chief executive of SolarPower Europe, linked the current benefits to longer-term instability. "Solar has been delivering huge financial benefits for Europe since the latest fossil fuel crisis in the Middle East began," she stated. "The Iran War deepened the turmoil in energy markets generated by Russia’s invasion of Ukraine."
Recommendations for Greater Resilience
The trade association's report argued that flexible electricity systems are less exposed to gas price shocks. It pointed to Spain and the UK, where batteries, pumped storage, and hydro helped limit the impact. To increase savings and security, the report made several key recommendations.
Faster solar deployment is essential. Installing 70 gigawatts (GW) of solar in 2026, rather than the currently forecast 61GW, could avoid a further €719 million in gas imports that year. Under higher gas prices, that extra avoidance could rise to €1.2 billion.
The report also advised deploying storage alongside solar to ensure renewable power is available when demand and prices peak. It recommended shifting electricity use to periods of high solar generation and urged large electricity users to consider fixed-price solar power purchase agreements (PPAs) to reduce exposure to market shocks.
Hemetsberger concluded by framing the strategic choice. "A dependency on the flow of oil and gas is clearly a risky energy strategy," she said. "Pipelines and shipping lanes have repeatedly proven vulnerable to disruption. This is not a hole the fossil fuel sector can drill us out of."
