Solar and the economy

Solar energy allows homes and businesses to generate their own electricity, reducing the amount of energy they must buy from the grid. This translates into lower energy bills, as more reliance is placed on free solar power rather than grid energy, which is subject to changes in fossil fuel prices. Home, business and commercial photovoltaic systems therefore offer long-term savings and protection against rising electricity prices.

Large ground-mounted installations also reduce people's electricity bills, although not directly: they feed cheaply produced energy into the national electricity market, driving down the national electricity price.

Europe’s electricity demand is rising, but prices are still tied to imported gas (EIB). Solar can help change this. It’s one of the cheapest energy sources. More solar means less reliance on fossil fuels, lower prices, and greater stability. Recent research shows that meeting 2030 renewable targets could cut power prices by 25% and make them 20% more stable. Citizens and businesses can also sign direct contracts with solar plants and even become prosumers, shielding themselves from volatile prices. This means more spending power for consumers and stable, affordable electricity for transport and industry as they shift to clean energy.

Solar and agriculture can work hand in hand, a concept known as agrivoltaics or Agri-PV. Here is how solar can support farmers: 

• Dual land use – Farmers can grow crops or graze animals underneath or between rows of solar panels.
• New income streams – Hosting solar provides long-term, stable lease payments, reducing financial volatility from crop prices or weather.
• Energy cost savings – On-site solar can lower electricity bills for irrigation, refrigeration, or processing.
• Resilience – Solar provides farmers with more diversified operations, helping them adapt to climate and market shifts. 
  
  In short, solar can enhance (not replace) productive farmland when thoughtfully designed. 

Solar already supports Europe's industrial strategy. And it's ready to do even more. The EU Clean Industrial Deal aims to decarbonise heavy industry and scale up cleantech manufacturing. Solar now provides 11% of Europe’s electricity (European Electricity Review 2025). Even combined with batteries, it is cheaper than fossil fuels. This affordable, homegrown energy gives European industries a major advantage, especially as more sectors switch from gas to electricity for everything from transport to manufacturing and home heating. With over 800,000 jobs across the EU value chain in 2023 (EU Solar Jobs Report 2024), Europe should also invest in long-term support for solar manufacturing as part of a complete industrial strategy. Investing in solar isn’t just good for the planet—it’s a smart move for Europe’s industrial future.

Solar energy empowers countries to generate electricity right at home, reducing the need to import fossil fuels. That means greater control over national energy supply, fewer price shocks from global markets, and a more resilient energy system overall.

By investing in solar, countries are turning their natural resources,like sunlight, into a strategic asset, boosting both energy security and economic stability. 

Yes. In many countries, utility-scale solar parks typically pay property taxes or land use fees to local municipalities, contributing to public budgets for schools, roads, and services. In some countries, community benefit agreements are also negotiated, offering direct payments, job training programmes, or co-ownership models. These revenues can be significant, especially in rural areas where new economic opportunities are welcomed.

Utility-scale solar farms offer clean, low-cost electricity with minimal maintenance. Once installed, they require no fuel, making them a reliable, affordable long-term energy solution. These projects also boost local economies by creating jobs, generating tax income, and supporting public services. As clean energy demand grows, utility-scale solar is becoming essential to both local and national economies.

Solar is now one of Europe’s most affordable electricity sources. Thanks to falling technology costs and free sunlight, large solar projects provide electricity more cheaply than fossil fuels, helping reduce electricity prices for households, businesses, and countries—making it a smart long-term investment.

Solar panels and their mounting structures are highly recyclable. About 90% of a solar panel can be recovered and reused, with glass, plastics, aluminum, and silicon making up most of the materials (Sustainable Solar Report, December 2024). Valuable metals like silver can also be extracted and reused. As the industry shifts towards electrification, solar power could be used, for example, to power electric arc furnaces that turn scrap steel into high-quality steel for building the next generation of solar panels. Practices like extending the lifespan of solar power plants and developing new methods to recover materials will be key to “closing the loop.”