Hybrid Solar Plants and Fresh Financing Models Drive EU Solar Growth

2025 marked another year of strong growth for photovoltaics (PV) in the European Union, though market dynamics are shifting. According to the latest reports, changing funding and financing models, coupled with project complexity, are presenting new challenges for investors. However, the industry is responding with innovative solutions like PV hybrid power plants and hybrid power purchase agreements (PPAs).

The Rise of PV Hybrid Power Plants

Hybrid power plants, combining PV, wind, and/or battery storage, are gaining prominence across Europe and globally. In Great Britain, their adoption is particularly high, supported by targeted funding and streamlined approval processes. These systems leverage business models like energy arbitrage – storing electricity during low-price periods and selling it when demand and prices rise – to enhance economic viability. Often, a combination of approaches, known as “multi-use,” is employed to optimize operations.

Global PV Capacity and the Need for Storage

As of early 2026, global installed PV capacity is nearing 3 terawatts [SolarPower Europe]. This rapid expansion places significant strain on electricity networks and existing market mechanisms. Large-scale energy storage is emerging as a crucial solution to address these challenges.

Falling Storage Costs Enhance Economic Attractiveness

The economic viability of stationary storage is increasing, driven by falling prices. According to BloombergNEF, costs reached $70 per kilowatt hour in 2025 [SolarPower Europe]. This decline is attributed to overcapacity in cell production, intense competition among Chinese manufacturers, and the increasing use of lithium iron phosphate (LFP) cells. When integrated with PV hybrid systems, stationary storage is becoming an integral component of the energy transition in Europe and worldwide.

Shift to Contracts for Difference (CfD)

Many EU countries are transitioning from classic feed-in tariffs to Contracts for Difference (CfD). CfDs secure revenue for project developers, stabilize electricity prices for consumers, and allow for the recovery of excess profits. Germany is as well undergoing this shift, with state aid approval for the Renewable Energy Sources Act (EEG) expiring at the end of 2026. Industry stakeholders express concern that the end of EEG remuneration could complicate financing for new projects, highlighting the need for stable and investment-friendly regulatory frameworks.

Intersolar Europe 2026: A Hub for Industry Exchange

Intersolar Europe 2026, taking place in Munich from June 23rd to 25th, will focus on PV hybrid power plants and new financing models. The Intersolar Europe Conference, beginning on June 22nd, will feature expert discussions and insights into current market trends. From June 23rd to 25th, the Intersolar Forum and exhibitor presentations will delve deeper into these topics.

Intersolar Europe is part of The smarter E Europe, alongside ees Europe, Power2Drive Europe, and EM-Power Europe, expecting around 2,800 exhibitors and over 100,000 visitors from around the globe [SolarPower Europe].