The Digester
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Iran conflict lifts demand for solar panels and EVs but threatens European car sales

Rising fuel and power prices after the Iran attack are accelerating consumer interest in solar panels, electric vehicles and heat pumps, boosting suppliers and Chinese manufacturers while raising risks that European car sales could slow.

Mar 25th 2026 · World

Insights

  • Higher oil and gas prices after the Iran attack have increased demand for home solar systems, EV chargers and heat pumps in Europe and the US.
  • German and UK suppliers report interest in home solar and heat pumps up roughly 30 to 100 percent, though part of the rise may be seasonal.
  • China controls about 80 percent of global solar manufacturing capacity and a large share of EV battery production, helping its clean energy stocks rally.
  • Forward electricity prices in Frankfurt for Q2 to Q4 have risen about 30 to 40 percent since the start of the Iran conflict, linking gas and power prices with a delay.
  • US search interest in electric cars rose about 20 percent in the week after the Iran attack, and analysts say sustained high fuel prices for three months would accelerate EV purchases.
  • Rising semiconductor and component costs could push up solar system prices and dampen some of the current demand.

Sources