The European Commission has recently unveiled two major initiatives designed to progress towards more sustainable, inclusive and carbon-neutral societies: the European Affordable Housing Plan (published on 16th December 2025) and the European Grids Package (published on 10th December 2025).
Making energy affordable through the first European housing package
Whilst the scope of the European Affordable Housing Plan is very broad, access to affordable energy is clearly recognised. Measures aiming at reducing household energy bills while improving the quality of Europe’s building stock, as well as supporting financing tools, are therefore clearly identified. From the perspective of solar heat, a renewable and readily available technology, we particularly welcome the following key instruments proposed:
- The Energy Communities Action Plan, where adequate consideration of renewable heat energy communities, which enable citizens to significantly reduce their bills, will be key;
- New Partnerships for Better Homes, tackling practical local barriers to delivering finance and scaling up efforts;
- Support for the development of National Building Renovation Plans, accelerating energy-efficient renovations across Member States;
- Guidance on one-stop shop services, simplifying access to information, technical assistance, and financing for households.
Solar Heat Europe is advocating for these instruments to help accelerate the use of decentralised heat technologies like solar heat, making energy affordable. The mobilisation of financial instruments to enable the deployment of renewable energy sources, such as solar heat, in all European homes is key. Hence the commitment from the European Association of Public Banks to unlock 375 bn€ is strongly welcome!
Grids and electrification: What role for direct renewable heat sources?
The Grids Package is the missing block to help unlock further electrification. We know the needs for electricity will grow and adequate transportation and storage systems will be key for this. However, the major share of our energy needs, heat, can already be addressed by readily available renewables notably solar heat. By already tapping into this potential, we will already collect low hanging fruits, help the flexibility that that whole decarbonised energy system needs, using thermal energy storage and avoiding grids’ congestion and peak prices.
This is why key measures under the Grids Package, such as the acceleration of permitting, but also Contracts for Differences, must also apply to renewable heat technologies.
This transition will be successful by making the most of all clean technologies working together.
A balanced path to decarbonisation
Together, the Affordable Housing Plan and the Grids Package underline the need for a balanced and integrated approach to the energy transition. However, they need to acknowledge the combination between electrification and renewable heat to ensure a balanced decarbonisation, ultimately beneficial to citizens. The expected Electrification Action Plan, as well as Heating & Cooling Strategy, both due in Q1 2026, are further opportunities to promote such synergies and interactions between the various sources of renewables and storage solutions.