The European solar market continues to expand. According to SolarPower Europe’s latest European Market Outlook, 2025 was another strong year for photovoltaics within the European Union, with Germany leading annual additions, followed by Spain, France, Italy and Poland. Solar’s contribution to Europe’s power needs is rising steadily.
At the same time, subsidy schemes and financing structures are being reworked across many markets, reshaping the investment landscape. Regulatory instruments such as contracts for difference are gaining prominence, while the industry is advancing market-based models including hybrid PV plants and structured power purchase agreements.
Intersolar Europe positions itself as a forum for orientation. As part of The smarter E Europe at Messe München, described as Europe’s largest exhibition alliance for the energy industry, trade visitors from 23 to 25 June 2026 can review new technologies, explore business models and meet project developers, manufacturers and investors. More than 2,800 exhibitors and over 100,000 visitors worldwide are expected.
The Smarter E Award 2026 – applications now open
The continued expansion highlights solar energy’s growing role as a central pillar of Europe’s electricity supply. At the same time, the market is in transition. Several countries are revising support schemes or shifting towards market-based incentives, adding a layer of uncertainty for investors. Project structures themselves are also becoming more complex. Together, these developments are accelerating the search for new business models and technical solutions.
Hybrid PV power plants and stationary storage systems
Hybrid power plants are gaining ground across Europe. In the UK, targeted support mechanisms and comparatively streamlined approval procedures have already led to a significant share of such installations. Business models such as energy arbitrage, storing electricity when prices are low and selling when they rise, contribute to the economic case. In practice, projects typically combine several revenue streams in a multi-use structure, underscoring both the optimisation potential and the importance of stable investment frameworks.
PV is now an essential part of the global power supply. Wood Mackenzie data shows that by early 2026, cumulative worldwide PV capacity had reached nearly three terawatts. This growth poses new challenges for the power grid and for market mechanisms, such as negative prices during peak periods and an increase in redispatch measures. Large-scale storage systems are becoming game changers, as they store surplus solar power and feed it back into the grid later, contributing to greater flexibility, improved grid integration and more efficient use of renewable energy.
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Stationary storage devices are becoming increasingly profitable. According to BloombergNEF, the price of stationary storage dropped to 70 US dollars per kilowatt hour in 2025 – the largest decline across all battery segments. Overcapacities in cell manufacturing, fierce competition among Chinese manufacturers and the expanded use of lithium-iron-phosphate (LFP) drove these price reductions. Stationary storage devices can be combined to form hybrid PV systems, making them an integral part of the European – and global – energy transition. They enhance system stability, enable new business models and strengthen project profitability under changing market conditions and new subsidy rules.
New financing models: CFD
In many EU countries, CFD models are beginning to replace conventional feed-in tariffs. They secure returns for project developers, stabilise consumer electricity prices and include clawback mechanisms for refunding excess revenues. The system is set to change in Germany as well: The government-approved feed-in tariff under the Renewable Energy Sources Act (EEG) will be discontinued at the end of 2026. Market participants fear that, without the EEG feed-in tariff, securing loans for new projects will become more difficult, and are calling for reliable framework conditions to ensure secure investments in Germany and across Europe.
23 GWh of battery storage secured via FPAs in 2025
Hybrid PV power plants and new financing models will be a major focus at Intersolar Europe 2026. The Intersolar Europe Conference opens on 22 June, offering a high-level kickoff for the exhibition, featuring renowned experts, strategic discussions and exclusive insights into market trends. From 23–25 June, the practical implications of these topics will be explored at the Intersolar Forum, while exhibitors present concrete solutions in the exhibition halls. Intersolar Europe will take place as part of The smarter E Europe, the continent’s largest alliance of exhibitions for the energy industry, alongside three other exhibitions: ees Europe, Power2Drive Europe and EM-Power Europe. More than 2,800 exhibitors and over 100,000 visitors from around the world are expected in 2026.
Intersolar Europe and the parallel events ees Europe, Power2Drive Europe and EM-Power Europe will be held from 23–25 June 2026 as part of the innovation hub The smarter E Europe, the continent’s largest alliance of exhibitions for the energy industry, at Messe München. (hcn)
