AbstractIn this study we aim at assessing the potential of European regions to solar power generation and its comparison with recent European Union (EU) incentives for the development of this renewable energy source. In this study we use a multi-criteria assessment (MCA) supported by Geographical Information System (GIS) to combine already existing information on solar radiation with other geographical factors such as slope, land use, urban extent and population distribution, as well as proximity to the power grid to generate a suitability map for photovoltaic (PV) power plants across the EU at high spatial resolution. A validation exercise showed that the resulting suitability map is a good predictor of appropriate locations for the deployment of PV power plants. The suitability map was in addition compared to the regional distribution of European funds for development of solar energy from the EU Cohesion policy (2007–2013 programme). Regions were classified according their overall suitability for solar energy power systems and the allocated solar investments by the EU Cohesion policy. This analysis allowed to identify potential mismatches between fund allocations and actual regional suitability for solar energy. It is recommended that future fund allocations take into account suitability criteria for solar energy for optimised results of public policies.