In this paper, a new type of hybrid fundamental solution-based finite element method (HFS-FEM) is developed for analyzing plane piezoelectric problems with defects by employing fundamental solutions (or Green's functions) as internal interpolation functions. The hybrid method is formulated based on two independent assumptions: an intra-element field covering the element domain and an inter-element frame field along the element boundary. Both general elements and a special element with a central elliptical hole or crack are developed in this work. The fundamental solutions of piezoelectricity derived from the elegant Stroh formalism are employed to approximate the intra-element displacement field of the elements, while the polynomial shape functions used in traditional FEM are utilized to interpolate the frame field. By using Stroh formalism, the computation and implementation of the method are considerably simplified in comparison with methods using Lekhnitskii's formalism. The special-purpose hole element developed in this work can be used efficiently to model defects such as voids or cracks embedded in piezoelectric materials. Numerical examples are presented to assess the performance of the new method by comparing it with analytical or numerical results from the literature.