Key points:
- The start of the Iran war has significantly accelerated consumer and government interest in clean energy. High fossil fuel prices and concerns over energy security have led to a surge in solar PV and electric vehicle inquiries across several European markets.
- Supportive policy frameworks can bolster the economic case for switching to renewables and electric vehicles. The relative size of Google searches for “plug-in solar” across six markets offers an indication that government support for new technologies influences take-up.
- Peaks in interest in EVs show a strong correlation with fossil fuel shocks related to geopolitical events, suggesting increased potential for electrification, which can be further supported through effective incentives.
Consumer interest in clean energy technologies echoes government intentions for energy security
Since the start of the Iran war, governments across Europe are increasingly focused on the role that clean energy can play in ensuring energy security by reducing reliance on fossil fuels and insulating consumers against volatile fossil fuel prices.
Anecdotal evidence shows that consumers share this growing political confidence in clean energy, implying in turn that voters both understand and sympathise with the development of policies to encourage clean energy deployment. However, while growing consumer interest in clean energy solutions seems universal across countries, the level differs, prompting the question of why these differences exist and what can be learned from contexts where demand is growing most strongly.
This briefing considers trends in consumer interest in five EU countries (Germany, Italy, France, Poland and Spain) and the United Kingdom to look at the policy context for solar photovoltaic (PV) and electric vehicles (EVs). It highlights how policy support measures can stimulate consumer interest in pursuing options which can enhance energy independence and reduce exposure to volatile fossil fuel prices.
Fossil fuel price rises trigger growing interest in domestic solar
Anecdotal evidence available so far shows a significant increase in interest in domestic solar PV in both the UK and Germany since the start of the Iran war. UK energy supplier E.ON reported solar inquiries rose by 63% in March compared with February, while Octopus reported a 54% increase in solar panel sales.
In Germany, Enpal reported around 30% growth in inquiries for its solar panels and heat pumps in mid-March, with the firm telling ZCA that this figure rose to 80% by the end of the month. Renewables provider 1KOMMA5° cited an even larger rise, approximately doubling month-on-month demand, echoed by the increase in inquiries to E.ON that month.
While household and consumer-level data and insights on cleantech deployment in Italy are not yet available, the Thermal Portal 3.0, a state incentive to promote the uptake of cleantech in existing buildings, such as heat pumps and solar PV, was forced to temporarily suspend submissions on March 3 due to an unprecedented volume of applications.
Policy measures that support cost-effectiveness of solar power can influence take-up by households
As rising energy prices drive consumer interest in home solar, supportive policy frameworks can bolster the economic case for switching to clean energy. Different countries offer different levels of support for household solar through a combination of policy mechanisms. Grants reduce the barrier of high up-front installation costs while tariff structures provide confidence that the investment will ultimately pay for itself. Germany and France both have feed-in tariffs (FiT), which set a fixed price for generation from solar panels for a specified number of years, while Italy offers a FiT if households are members of a Renewable Energy Community (REC). However, Germany is currently shifting away from the FiT model, and it is expected to be withdrawn from 2027.
FiTs have traditionally been seen as the most attractive support option because of the certainty that a fixed price and fixed-term agreement offer households. However, many countries are now shifting to more market-based approaches while still ensuring some payment for power exports to the grid. This includes the UK, Spain and Poland, where prices may vary according to market rates rather than be guaranteed. Italy also offers payments for exports for households which are not members of a REC.
Some countries (Italy, the UK, France, Spain) also offer grants or low-interest loans to help cover the costs of installing PV in some instances, while Poland provides grants for PV plus storage installations as long as householders are registered to export power to the grid. Other financial incentives include tax breaks, as seen in Spain and France.
Case study: Policy support for plug-in solar drives a wave of interest
Plug-in solar systems allow households to install their own solar PV systems in gardens or on balconies. These systems generate power primarily for personal use, while also enabling exports to the grid, reducing electricity payments. Plug-in options can expand the availability of solar power to renters and apartment-dwellers, who in the EU are 32% and 48% of households, respectively. Although this is a newer adaptation of household solar use, the number of installations is growing across Europe and is expected to expand as new buildings in the EU are optimised for solar generation from May 2026.
Several European countries have introduced measures specifically designed to encourage the greater use of plug-in solar as a direct response to the Iran war. In late March, Spain introduced a law that sets up tax breaks for households that generate renewable electricity, including from plug-in solar. Meanwhile the UK government announced that it will allow plug-in solar to be sold and installed for the first time, although as yet there are no details on specific arrangements for the technology, nor whether consumers will be paid for any exports to the grid.
Germany was an early adopter of plug-in solar, introducing the Solarpaket 1 (Solar Package 1) in April 2024 to encourage uptake. It includes a feed-in tariff for consumers, which guarantees households a set price for each unit of electricity they generate and export to the grid. Coupled with VAT exemption for plug-in solar systems and rapidly falling costs, these measures have led to clear and sustained interest over time.
As of April 2026, the German government has registered over 1.2 million operational plug-in solar systems, and between 1 March 2026 and 14 April 2026 over 49,000 new systems have been registered. The number of registrations is believed to be a significant underestimate of the actual number of systems in use, according to Solar Power Europe.
France, Poland and Italy, on the other hand, have more complex permitting processes for plug-in solar. In France, any solar panel installed more than 1.8 metres above the ground is subject to a local authority permitting process, while in Poland, panels installed in communal residences require permission from the housing community. Neither France, Poland nor Italy offer formal prices for exports of surplus power to the grid, reducing the incentive to install the panels.
There are indications that consumer sentiment aligns with supportive policies
Figure 1
A review of Google searches for plug-in solar in these countries reveals stronger market awareness in Germany, where search numbers are significantly higher (see Fig. 1).1The data from Google searches shows the relative number of searches for particular words. It does not necessarily mean that these searches are conducted by people interested in buying the technology, and does not translate into actual sales. It should therefore be treated as complementary to the other anecdotal evidence illustrating levels of interest. Google Trends measures search volumes on a scale of 0-100, This graph shows the highest level of searches in Germany (100), with searches in other countries scaled relative to that. Of the six countries, the policy support offered by Germany gives householders a greater level of certainty about the prices they will receive for their electricity exports, and therefore how quickly they might be able to pay back the investment they have made in plug-in solar panels.
This supportive policy environment, alongside its status as an early adopter of the technology, could help to explain the high level of interest in the technology in Germany relative to other countries. The impact of policy attention can also be seen in the UK, where a significant spike in searches coincided with the announcement that the technology would soon be available in the market.
A direct link between coal-fired power plants and mortality has been established. A 2017 paper estimated that Southeast Asian coal emissions caused around 20,000 excess deaths per year, which will increase to around 70,000 by 2030.
Coal in Southeast Asia is also a driver of the region’s growing climate vulnerability. Globally, coal is the single largest contributor to global warming, responsible for just over 40% of all CO2 emissions.
Southeast Asia is one of the regions most exposed to the consequences of climate change. The Philippines, Myanmar and Vietnam ranked among the top ten nations most affected by extreme weather impacts in 2024. Climate change increases both the frequency and intensity of these extreme weather events, such as heatwaves, floods and wildfires.
This means that the real economic costs of coal are hidden. Air pollution, public health, water usage, mining damage and carbon emissions all contribute to unaccounted for economic losses.
Early reports show EV demand is growing in key European markets
Rising interest in clean technologies that avoid reliance on fossil fuels since the start of the Iran war is also reflected in surging demand for EVs across certain EU markets. German online vehicle marketplace Mobile.de reported that inquiries about new or used electric cars increased more than 50% in March compared to February, while inquiries about petrol and diesel declined. AutoScout24 reported a 40% increase in demand for EVs in Germany, Austria and Italy. In France, La Centrale reported that searches for EVs had increased by 160% in March. Demand was up 23% in the UK, and in Spain, sales of EVs and hybrids grew by 58.4% in the first quarter of the year compared to the same time last year, according to industry trackers.
This trend is backed up by recent research from digital marketplace OLX, which showed that the increase in EV searches in the month to March 22 coincided with decreased interest in internal combustion engine cars. The report found that there was a 145% year-on-year increase in interest in EVs in France, while in Poland, interest grew 39% since the start of the conflict.
These figures are supported by data on Google searches for EVs for the six countries, where clear spikes in interest can be seen in all markets coinciding with the Iran war.
Peaks can be seen in 2022 at the start of Russia’s invasion of Ukraine, which had a similar impact on fossil fuel prices (Fig 2).2The data from Google searches shows the relative number of searches for particular words. It does not necessarily mean that these searches are conducted by people interested in buying the technology, and does not translate into actual sales. It should therefore be treated as complementary to the other anecdotal evidence illustrating levels of interest. Google Trends data measures search volumes on a scale of 0-100 for each country. This view allows for a comparison of growth in each market but does not indicate the size of search volumes in any country.
Figure 2
In addition, flash data on new automobile sales for March 2026 shows a year-on-year decline in petrol and diesel car sales alongside strong growth across all electrified.
Figure 5
The policy context for electric vehicles can influence uptake
While it is clear that the Iran war has sparked increased interest in EVs across all six countries, the reaction is not uniform. In part, this could be explained by the relative generosity of support measures offered by different governments.
Germany reintroduced its EV grant scheme from 1 January 2026, with the level of the grant determined by household income, making EVs more accessible to those on lower incomes. EVs in Germany are also exempt from vehicle tax and benefit from a reduced company car tax rate.
France has also adopted a social model of support for EV purchase, establishing a social leasing model for people on lower incomes. The scheme will be reactivated in June 2026 as part of France’s strategy to reduce dependence on fossil fuels. Combined with tax breaks, the generous purchase grants led to strong growth in the EV market in early 2026, according to the national association for electric mobility.
Both Spain and Italy also offer a combination of grants and tax breaks to encourage the purchase of new EVs. Poland, which has historically lagged behind many other countries in providing incentives for EVs, introduced several measures in 2025, including grants for EVs (with a premium for low-income households) and a scrappage bonus, as well as tax exemptions. Applications for the purchase grants have exceeded the overall budget cap for the programme, which means that there is no guarantee that grants will be available once overall grant funds are exhausted. As a response, the government is reportedly considering extending the funding or providing a new programme to support EV uptake.
The outlier is the UK, which offers grants to buy electric cars, as well as grants for installing charging infrastructure. However, unlike the other countries, EVs are no longer exempt from road tax in the UK. Nevertheless, UK government grants have helped make new electric cars cheaper to buy on average than petrol models for the first time, according to the UK’s biggest automotive marketplace.
