Europeans turn to clean energy amid fossil fuel price shock
Summary
This briefing by Zero Carbon Analytics examines how the start of the Iran war and subsequent fossil fuel price shocks have accelerated consumer and government interest in clean energy technologies, specifically solar photovoltaic (PV) systems and electric vehicles (EVs), across six European markets: Germany, Italy, France, Poland, Spain, and the United Kingdom.
Key insights
- The start of the Iran war has triggered a significant increase in consumer interest in domestic solar PV, particularly in the UK and Germany. In the UK, E.ON reported a 63% rise in solar inquiries in March compared to February, and Octopus saw a 54% increase in solar panel sales. In Germany, Enpal reported that inquiries for solar panels and heat pumps grew from 30% in mid-March to 80% by the end of the month, while 1KOMMA5° reported that demand approximately doubled month-on-month.
- Policy frameworks, such as feed-in tariffs (FiT) and grants, significantly influence the adoption of solar energy. Germany and France utilize FiTs to provide fixed prices for solar generation, though Germany expects to withdraw this model from 2027. Italy offers a FiT for members of a Renewable Energy Community (REC). The UK, Spain, and Poland use more market-based approaches where prices vary. Additionally, Italy, the UK, France, and Spain offer grants or low-interest loans, while Poland provides grants specifically for PV plus storage installations for those registered to export power.
- Germany has seen substantial success with 'plug-in solar' systems due to the April 2024 Solarpaket 1 (Solar Package 1), which provides a feed-in tariff and VAT exemptions. As of April 2026, over 1.2 million operational plug-in solar systems are registered in Germany, with 49,000 new registrations between 1 March 2026 and 14 April 2026. In contrast, France, Poland, and Italy have more complex permitting processes and lack formal prices for exporting surplus power, which reduces installation incentives.
- Demand for electric vehicles (EVs) has surged across European markets following the Iran war. In France, La Centrale reported a 160% increase in EV searches in March, and OLX noted a 145% year-on-year increase in interest. In Germany, Mobile.de saw inquiries for new or used electric cars increase by more than 50% in March compared to February, while AutoScout24 reported a 40% increase in demand across Germany, Austria, and Italy. Spain saw EV and hybrid sales grow by 58.4% in the first quarter of the year compared to the previous year, and Poland saw a 39% increase in interest since the conflict began.
- Government incentives for EVs vary by country, impacting uptake. Germany reintroduced an income-based EV grant scheme on 1 January 2026 and offers vehicle tax exemptions. France uses a social leasing model for lower incomes, set to be reactivated in June 2026. Poland introduced grants and a scrappage bonus in 2025, though applications have already exceeded the budget cap. The UK provides grants for vehicles and charging infrastructure, but unlike the other mentioned countries, EVs are no longer exempt from road tax.
Cite the original document
- APA
- Woodman, B. (2026). Europeans turn to clean energy amid fossil fuel price shock. Zero Carbon Analytics. https://zerocarbon-analytics.org/energy/europeans-turn-to-clean-energy-amid-fossil-fuel-price-shock/
- Chicago
- Woodman, Bridget. Europeans turn to clean energy amid fossil fuel price shock. Zero Carbon Analytics, 2026. https://zerocarbon-analytics.org/energy/europeans-turn-to-clean-energy-amid-fossil-fuel-price-shock/.
- Wikipedia
- {{cite report |last1=Woodman |first1=Bridget |title=Europeans turn to clean energy amid fossil fuel price shock |publisher=Zero Carbon Analytics |date=21 April 2026 |url=https://zerocarbon-analytics.org/energy/europeans-turn-to-clean-energy-amid-fossil-fuel-price-shock/ |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{woodman2026europeans, author = {Woodman, Bridget}, title = {{Europeans turn to clean energy amid fossil fuel price shock}}, institution = {Zero Carbon Analytics}, year = {2026}, month = apr, url = {https://zerocarbon-analytics.org/energy/europeans-turn-to-clean-energy-amid-fossil-fuel-price-shock/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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