According to SolarPower Europe’s briefing paper, solar energy generated 19.9 TWh in the first 17 days of the Middle East conflict, helping the EU avoid major fossil fuel import costs
Solar and storage are emerging as key tools to reduce exposure to volatile gas prices and energy supply shocks – tools policymakers must promote
Businesses using solar PPAs or onsite solar-plus-storage are already seeing significant electricity cost savings
The European Union (EU) saved about €111.7 million per day in avoided fossil fuel imports during the first 17 days of the Middle East conflict in March 2026, according to new research from SolarPower Europe (SPE). Solar power generated 19.9 TWh in that period, with total savings in March reaching €3.77 billion.
It also helped the bloc avoid around €1.9 billion in gas generation costs, which would have been an extra 32% on top of the estimated €6 billion the European Commission spent on fossil fuel imports since the war began. SPE is also publishing a daily gas savings tracker on its website.
The bloc’s solar fleet is expected to generate around 415 TWh in 2026. SPE stresses that equivalent gas production in place of solar would cost the EU €34.8 billion in imports at mid-March gas prices, based on Rystad Energy’s gas price data. Prolonged conflict in the Middle East will further strain the gas supply chain, leading to a total import price bill of €67.5 billion for the rest of 2026, according to its estimates.
In its briefing paper, SPE says, "Under mid-March gas price expectations and PV deployment trajectory, solar electricity generation between 2026-2030 would avoid 170 billion EUR of gas import costs, assuming that gas would be used to generate that electricity instead. This represents average annual savings of 34 billion EUR, which is roughly the cost needed to install 34 GW, more than half of annual PV installations for this year."
“Solar deployment in the EU flatlined in 2024 and 2025 despite the huge costs created by our energy dependence. This new data is a reminder of how solar is serving Europe today, and the scale of the future benefits to our security and economy,” said SPE CEO Walburga Hemetsberger.
Further and faster solar deployment would deliver additional savings while protecting the bloc from future supply shocks, SPE adds. Adding storage and flexibility solutions will maximize solar’s value by shifting supply, shaving peaks, and limiting the impact of gas prices on power markets.
The report highlights 2 case studies showing how solar and storage help businesses cut energy costs. In Germany, steel producer Salzgitter signed solar power purchase agreements (PPAs) for 370 GWh of electricity annually in 2024, securing power at fixed prices. It is estimated to have saved about €12 million per year compared with wholesale market rates. If electricity prices rise due to higher gas costs, the savings could increase to €26.5 million or even €49 million annually under a severe price-spike scenario.
For smaller consumers, it cites the Schindele dairy farm in Obergünzburg, which installed a 100 kW solar PV system with a 67 kWh battery, hybrid inverter, and smart energy management. The system allows the farm to produce about 97% of its electricity and cut energy costs by 79%, saving over €30,000 a year. With higher retail electricity prices, annual savings could rise to between €39,000 and €46,000.
SPE’s Deputy CEO Dries Acke says battery storage, demand response, and flexible grids should be an ‘absolute priority’ for the EU. “Battery storage stands out as the swiftest and most effective option to prevent expensive gas from setting electricity prices. That in turn makes electrification and flexibility cheaper for European industry and households,” he adds.
The complete briefing paper, titled Solar and Storage for Energy Security, is available for free download on SPE’s website.