Key Takeaways
Demand for rooftop solar systems has surged over 30% across Europe since the start of the Iran war, as households and businesses rush to shield themselves from record-high energy prices and reduce reliance on volatile fossil fuel imports.
"The war has merely exposed the problem that has existed all along: energy dependency," said Janik Nolden, co-founder of German solar equipment wholesaler Solarhandel24.
Solarhandel24 reported its net sales more than tripled in March to nearly 70 million euros from a year earlier, with April on track for similar growth. German energy firm Enpal saw a 30% year-on-year order increase in March to 130 million euros, driven by rooftop solar. The trend is widespread, with major utilities like E.ON reporting that customer requests have nearly doubled.
This structural shift towards energy resilience could accelerate Europe's green transition and boost revenues for solar equipment manufacturers and installers. Shares in SMA Solar (S92G.DE), a key European inverter maker, have risen about 50 percent since the conflict began, reflecting investor optimism.
The surge in demand is a direct response to the historic energy disruption caused by the conflict, which has pushed electricity and gas prices to new highs. Homeowners are increasingly opting for full systems that combine solar panels with batteries and electric-vehicle wallboxes, allowing surplus power to be stored and used later. This has also lifted demand for energy storage technologies by 40 to 50 percent, according to industry association Holland Solar.
In the UK, where OVO Energy estimates nearly half of all residential buildings are ready for solar panels, the government has unveiled measures to encourage installations. OVO's own sales in its solar division were roughly ten times higher in April than a year earlier. "We view the spike in demand as a structural shift that current geopolitical events are accelerating, not creating," said Ed Janvrin, who heads the solar and heating business at OVO Energy.
While the demand boom is a boon for European installers and the few remaining local equipment producers like SMA Solar, Chinese manufacturers, which supply nearly 90% of Europe's solar panels, have stated the surge is unlikely to fix the sector's significant overcapacity problem.
This article is for informational purposes only and does not constitute investment advice.
