The European solar market continues to grow. According to SolarPower Europe’s latest European Market Outlook, 2025 marked another strong year for photovoltaics (PV) within the European Union. Germany leads the annual expansion rankings, followed by Spain, France, Italy and Poland. The significance of solar energy in meeting Europe’s power needs is increasing steadily. At the same time, many countries are changing their subsidies and financing models, creating new challenges for investors. Regulatory instruments, such as contracts for difference (CFDs), are establishing a new order, while the industry is responding with market-driven solutions like hybrid PV power plants and hybrid power purchase agreements (PPAs).
Intersolar Europe offers guidance: At The smarter E Europe, the continent’s largest alliance of exhibitions for the energy industry at Messe München, trade visitors can experience innovations, discuss new business models and meet project developers, manufacturers and investors from 23–25 June 2026. More than 2,800 exhibitors and over 100,000 visitors from around the world are expected in 2026.
The Smarter E Award 2026 – applications now open
The expansion underscores the crucial role of solar energy as a primary component of the European electricity supply. At the same time, the market is undergoing significant changes. Many countries are adjusting their support schemes or replacing them with market-based incentives, which creates uncertainty among investors. Moreover, actual projects are becoming increasingly complex. These combined factors are driving the development of new business models and technical solutions.
Hybrid PV power plants and stationary storage systems
Hybrid power plants are gaining traction across Europe. In the UK, targeted subsidies and efficient approval processes have already resulted in a high share of these installations. Business models such as energy arbitrage, where electricity is stored when prices are low and sold when prices are high, can help make these plants profitable. In most cases, a mix of several business models (multi-use) is employed. This ensures optimal operation and highlights the need for stable investment conditions.
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)
