Investment in European solar technology startups has rebounded from a decade low recorded in 2025, with €82 million in disclosed equity funding recorded during the first eight months of 2026, according to an analysis of Crunchbase data by electronic components distributor Avnet Silica. The findings suggest investors are concentrating their funding on fewer, larger transactions, with solar panel recycling emerging as a significant area of interest.
The €82 million total compares with €24 million raised during the whole of 2025, although investment remains well below the €285 million peak recorded in 2023.
The analysis covers European startups developing solar hardware and software, including photovoltaic materials, cells and modules, energy management systems and end-of-life recycling technologies. It excludes the much larger sums invested directly in solar generation projects.
Early-stage businesses accounted for 93% of funding recorded in 2026, with five transactions exceeding €10 million. This makes 2026 the joint highest year on record for large early-stage deals, according to the study.
The median funding round across all investment stages reached €15 million, the highest recorded in more than 15 years. Avnet Silica suggests the increase reflects a shift towards larger investments in selected companies, rather than a broader distribution of funding across the sector.
Recycling attracts investment
Materials recycling and recovery accounted for 43% of European solar startup funding recorded in 2026, highlighting growing investor interest in technologies for recovering valuable materials from end-of-life photovoltaic equipment.
Among the companies attracting investment were Germany’s Solar Materials, which raised €15 million, and French solar panel recycling specialist ROSI, which secured €20 million.
The findings point to investor interest in technologies addressing the resource demands and end-of-life impacts of solar energy.
The analysis also identified four mergers and acquisitions involving European solar hardware and software startups during 2026, making it the second-highest year on record for such activity, behind 2021.
One example was Sunotec Group’s acquisition of a majority stake in German electrical infrastructure specialist Kaufmann Electric in June, intended to strengthen its capabilities in substations, cables and grid connections for solar projects.
Harvey Wilson, Senior Manager Industrial Vertical Markets EMEA at Avnet Silica, suggested that European energy security priorities and regulatory developments could encourage further investment in domestic technology and manufacturing.
He highlighted the EU’s Cyber Resilience Act as a potential influence on the development of connected energy equipment, particularly the need to incorporate cybersecurity requirements into product design.
While the figures indicate a recovery in investment, Avnet Silica’s analysis covers disclosed transactions recorded up to 31 August 2026. The relatively small number of large deals, together with possible delays in reporting investment rounds, means the results should be interpreted cautiously.
This article draws upon Avnet Silica’s European solar startup investment analysis.
