Europe could save 40% on electricity costs if solar and batteries ‘work in harmony’

Europe could save 40 per cent on electricity costs thanks to solar and batteries – but only if the complimentary technologies are deployed correctly.Solar has rapidly become a leader in clean energy, helping the world transition away from polluting fossil fuels and cushioning households from volatile oil and gas price spikes.According to the Solar Power Europe association, harnessing sunlight for energy has saved the EU €43.7 billion in avoided gas imports since the beginning of the 2026 US-led war on Iran. But solar’s rapid expansion has shone a light on the urgent need for battery energy storage systems, to help prevent clean energy from being wasted when generation outstrips demand. A new report launched during the UN COP31 climate summit has revealed just how much this combination can shape total electricity costs in Europe.Will Europe’s solar and battery boom pay off?The report, from the Schneider Electric Research Institute (SERI), modelled 40,500 scenarios across different combinations of solar, battery and grid costs to identify whether the rise of distributed energy resources (DERs) will ultimately raise or lower electricity costs overall. DERs are small-scale, decentralised energy technologies like rooftop solar, battery storage systems, EVs and smart appliances.It found that, when DER deployment is coordinated with electrification, the overall cost of running the electricity system could be cut by as much as 40…