The presentations were concluded by LCP Delta’s Head of Flexibility and Storage, Jon Ferris, who outlined the evolution of Europe’s solar industry in 3 key phases, highlighting its shift from subsidy-led growth to a more complex, market-driven ecosystem. This first phase (pre-2012) saw growing distributed generation despite challenges related to demand constraints and capital costs, thanks to subsidies like the feed-in-tariffs (FIT), particularly for single-family homes.
The second phase (2012–2024) was marked by falling module prices and the end of net metering and FITs for residential and C&I sectors. The post-COVID demand surge positioned solar as the 2nd largest energy contributor in Europe by installed capacity and 6th in terms of annual generation. By mid-2025, solar accounted for the largest share of generation during peak periods, causing negative pricing and driving a shift to merchant markets. Ferris emphasized the increasing value of solar in frequency and ancillary services, with revenues now including explicit compensation due to dynamic tariffs.
The third phase, now underway, focuses on hybridization and behind-the-meter optimization. Flexible models combining PV, storage, EVs, and even applications like heat pumps, e-boilers, and bitcoin mining are gaining traction. The growing role of BTM systems at GW-scale is transforming single- and multi-family households into active grid participants. Self-curtailment and real-time market responsiveness are expected to define this next phase of Europe’s solar transition, he said.
Panel Discussion
The TaiyangNews Distributed & Smart Solar Conference panel discussion, moderated by TaiyangNews Managing Director Michael Schmela, centered on unlocking growth potential in residential and commercial & industrial (C&I) solar sectors post-energy crisis.
Reflecting on lessons learned over the past 15 years, Jan Osenberg of SolarPower Europe emphasized the importance of diversification, highlighting that relying on a single segment is risky. LCP Delta’s Jon Ferris added that the journey of solar and storage development isn’t linear. While the energy crisis briefly boosted solar demand due to high power prices, sustainable growth relies on the strategic balance between PV and storage, he stressed.
Ali Arfa from EUPD Research echoed this sentiment, underlining the need for diversified strategies and the practical implementation of PV+ESS solutions. Luis Castillo from Sigenergy added that diversification, especially through renewables-based energy independence, is a fundamental requirement for resilient energy systems.
On regional market dynamics, Castillo noted accessibility gaps in residential solar, pointing out that plug-in or balcony PV systems remain banned in several countries, such as the UK. Ferris argued that regulatory mandates like those for new buildings often fail to deliver substantial impact, while Osenberg emphasized that integrating heat pumps and EVs into solar systems can unlock new flexibility options and reduce grid dependence. Arfa advocated for more inclusive business models, particularly targeting middle and lower-income segments with 5-10 kW C&I systems.
Looking forward, the panel addressed market evolution under dynamic tariffs and merchant models. According to Ferris, dynamic tariffs and merchant market offerings are still niche as these comprise complex data management at the consumers’ end, but he also sees it as relevant for asset owners with EVs or heat pumps. Overall, the panel agreed that momentum appears to be building, with growing interest in flexible, consumer-driven energy ecosystems across both residential and C&I segments.
TaiyangNews ran a live blog during the course of this conference, which can be viewed here.
A recording of the presentations and the panel discussion at the conference are also available online on the TaiyangNews YouTube channel.
Next up, TaiyangNews will return with another virtual conference on September 2, 2025. This 1-day virtual event will focus on the latest developments in Cell & Module Production Equipment & Processing Materials for solar cells and modules. Click the link to register now.
