Hormuz Strait Shipping Issues Spark European Solar & Storage Order Boom

The chain reaction stemming from shipping disruptions in the Strait of Hormuz is continuing to roil Europe's energy landscape, as the region's solar and energy storage market witnesses a fresh round of "explosive orders," further worsening the supply-demand imbalance.

In March 2026, under the dual pressures of escalating geopolitical conflicts and sharp fluctuations in international natural gas prices, wholesale electricity prices in numerous European countries surged to their highest levels of the year. This sharp price increase directly sparked a surge in demand for photovoltaic (PV) and energy storage products, with mainstream PV module prices rising in step. High-efficiency PV modules and household energy storage systems were in tight supply, prompting downstream distributors and system integrators to adopt a "stock-grabbing" model, marking the official start of an explosive demand period for Europe's solar-storage market.

According to the latest data released by AleaSoft Energy Forecasting, an authoritative forecasting agency for the European electricity market, electricity prices in major European economies such as Germany, the Netherlands, Italy, and Belgium all climbed to their 2026 peaks in March. Notably, Italy's daily average electricity price reached 168.54 euros per megawatt hour (MWh) on March 10, setting a new single-day high in nearly a year and underscoring the severe pressure of rising energy costs.

From a regional perspective, the increase in electricity prices across European countries showed distinct differences, with the core reason being variations in the dependence of local power structures on natural gas for power generation. Data from consulting firm Ember indicates that since 2019, Spain has benefited from the large-scale expansion of renewable energy sources like wind power and photovoltaics. Natural gas only influences electricity prices during 15% of the country's electricity consumption periods, resulting in price fluctuations far below the EU average.

In contrast, Italy remains heavily reliant on natural gas for both electricity production and system flexibility, which directly pushes up the marginal cost of electricity-this impact stands at 89%. This has made Italy the country with the highest electricity price increase in the EU, fully demonstrating the key role of renewable energy in stabilizing electricity prices.

It is important to note objectively that high wholesale electricity prices do not directly mean better economic viability for end-users installing solar-storage systems. Supporting regulations in various countries, such as retail electricity price controls, grid connection rules, and net metering settlement mechanisms, still exert a profound impact on users' investment decisions. However, the expectation of sustained electricity price increases has comprehensively raised the awareness of energy price risks and concerns about supply security among European households and industrial and commercial entities.

The core value of solar-storage systems-self-consumption, cost reduction, and supply assurance-has been widely recognized by the market, becoming the key driver behind the explosive demand.

On March 15, the UK government announced a series of measures to accelerate the expansion of clean energy and ensure national energy security. These measures include advancing the AR8 offshore wind auction to start in July 2026, and launching plug-and-play solar panels for the first time, which households can purchase and install on balconies or outdoor spaces.