Study touts fresh claims of European solar-plus-storage’s sound economics

Facebook
Twitter
LinkedIn
Reddit
Email
Finnish systems mixing PV with 1kWh/kWp storage battery units will compete with average spot prices by 2025, the study found (Image credit: Flickr / flrnt)

A study co-written by industry figures has put forward new claims of the cost-competitiveness of European solar-plus-storage, amid predictions that grid parity will unfold continent-wide by 2025.

In work carried out with the support of PV research institute ETIP PV, researchers examined six solar markets in Europe’s north and south and found levelised costs of electricity (LCOE) fell below average spot prices across all already in 2018.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Assuming weighted average costs of capital of 7%, solar grid parity was already present last year in Málaga (LCOEs of €24/MWh), Helsinki (€42/MWh) and cities in four other EU countries, the study said.

Solar competitiveness – understood as the gap between average spot market prices and lower PV LCOEs – was most pronounced in high-irradiation Spain and Italy, followed by the UK, France, Germany and Finland, the analysis claimed.

The report was authored between Dr. Eero Vartiainen – solar technology manager at Finnish state-run developer Fortum – and researchers from Finland’s LUT University, Belgium’s Becquerel Institute, Spain’s Tecnalia, Eurac and others.

The analysts explained their LCOE calculations factored in costs and margins including manufacturing, plant roll-out and O&M. They admitted assessing LCOEs is not challenge-free – “investors do not usually publish their budgets,” they said – and added data had been pulled from BloombergNEF, Solargis and other sources.

The findings, the study said, should help steer the ongoing global debate on how to tackle climate change. “Policymakers need to be informed that PV is the cheapest form of electricity, especially if its inherent low … risks are taken into account,” the document added.

Solar-plus-storage, a European grid equal by 2025

The renewed spotlight on renewable economics comes as EU countries from France to Portugal, Italy and Poland lay out sweeping solar targets to 2030 and beyond. Some have warned an equally ambitious storage build-up will be needed if grid integration is to remain smooth.

According to the new study, solar partnerships with storage batteries in particular already make financial sense in Spain and Italy. At respective €39/MWh and €69/MWh, LCOEs of solar-plus-batteries are currently lowest and highest in Málaga and Helsinki of all six cities under analysis.

However, the experts noted, economic gains will see LCOEs of PV deals with 1kWh/kWp storage batteries drop to match average spot prices in London and Toulouse in 2020. For their part, Munich and Helsinki could reach the milestone in 2025, the study added.

The analysts based the bullish forecast on predictions that CAPEX costs – as well as operational expenditures, or OPEX – will decline, uninterruptedly and all the way to 2050, for both utility-scale solar and li-ion battery systems.

Solar grid parity predictions have multiplied of late as technology costs plummet, with studies finding China, Australia, Italy and India are leading a global race towards cost-competitiveness. Cost of financing remains a hurdle cited by the various reports, however.

“It can be concluded that the financial parameters, nominal WACC and inflation, have the biggest impact on the PV LCOE,” argues the latest ETIP PV-backed study. “This proves that it is of utmost importance for the solar PV industry to convince the financial community that utility‐scale PV is a safe and profitable investment.”

See here to access the latest analysis in full

The prospects and challenges of European solar amid alliances with storage will take centre stage at Solar Media's Large Scale Solar Europe 2020, to be held in Lisbon on 31 March and 1 April 2020

3 June 2025
Messe Stuttgart Stuttgart, Germany
Meet battery manufacturers, suppliers, engineers, thought leaders and decision-makers for a conference and battery tech expo focused on the latest developments in the advanced battery and automotive industries. Stay plugged in for all the latest information on The Battery Show Europe 2024 including: Keynote Speakers & Conference Overview Show Features Floor Plan & Exhibitor News Travel & Transport information
2 December 2025
Málaga, Spain
Understanding PV module supply to the European market in 2026. PV ModuleTech Europe 2025 is a two-day conference that tackles these challenges directly, with an agenda that addresses all aspects of module supplier selection; product availability, technology offerings, traceability of supply-chain, factory auditing, module testing and reliability, and company bankability.
10 March 2026
Frankfurt, Germany
The conference will gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing out to 2030 and beyond.

Read Next

May 21, 2025
There is potential for cPPAs to deliver the energy transition, according to speakers at the Renewables Procurement and Revenue Summit.
May 21, 2025
Installation of the anchoring system for what has been badged the world’s first floating offshore solar-wind project has been completed.
May 21, 2025
The Chilean subsidiary of French utility Engie has started construction on a 151MW solar-plus-storage project in the Metropolitan Region of Chile.
May 21, 2025
PPAs and VPPAs are an imperfect but effective tool, according to speakers at the 2025 Renewables Procurement & Revenue Summit.
May 21, 2025
Carlyle has launched a new platform called Revera, dedicated to renewable energy, energy storage, and hydrogen projects in Australia and UK.
May 20, 2025
The ability of PV simulation software to accurately simulate energy performance for bifacial modules leaves more questions than answers.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
June 17, 2025
Napa, USA
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 8, 2025
Asia
Solar Media Events
September 16, 2025
Athens, Greece