SPE’s new report looks into the flexibility aspect of smart solar buildings
Combining solar with batteries, EVs and heat pumps can strengthen the EU’s energy security and provide grid stability
The report provides a set of recommendations to ensure flexibility is integrated into the policy framework
Rooftop solar can turn the European Union’s (EU) building stock into a source of clean flexibility, contributing to their efficient operation while reducing costs for owners and occupiers, according to a new SolarPower Europe (SPE) report.
By combining rooftop solar, battery storage, heat pumps, electric vehicles (EVs), and smart systems, buildings can offer essential flexibility solutions for a renewable energy-based energy system of the future. By 2030, these solutions have the potential to meet 52% of the EU’s daily, 35% of weekly, and 29% of its annual flexibility needs.
These bring the benefits of energy security, reduced grid costs, lower operating costs and lower emissions, states the SPE report titled Flexible Buildings, Resilient Grids-How rooftop solar strengthens the electricity system.
“Our modelling shows, that by 2030, smart solar building solutions could meet more than half of EU daily energy system flexibility needs, and a third of its annual flexibility needs. That means a more cost-effective system, resilient to shocks and strengthening Europe’s energy security,” said Raffaele Rossi, SPE’s Project Manager for the report.
To drive home the point, the report lists a number of flexibility case studies from companies offering such commercial products to show tangible benefits for citizens and grids.
SPE’s Executive Advisor and Director of Market Intelligence, Michael Schmela, also a co-author of the report, emphasized the policy actions for optimized use of flexibility. He said, “We must translate European Directives and Regulations into national laws, grid codes, and local rules to integrate building flexibility into the broader energy system. This takes time, as investments in networks and power generation are long-term commitments.”
The report writers offer the following recommendations:
Set price signals for networks and supply that encourage flexibility: End-users need time-based pricing to adjust energy use efficiently, so regulators should offer flexible grid agreements, dynamic pricing, and fair rooftop PV payments. Grid tariffs should balance cost recovery while encouraging off-peak use and investment in flexibility solutions like batteries. Portugal is one market where low-voltage consumers get flexibility with grid tariffs based on their consumption levels and time-of-use preferences.
Complement smart meters with submeters: The roll-out of smart meters must be expedited to boost demand response. Consumers should be given the right to use data from submeters, called a dedicated measurement device (DMD). The writers want charging and discharging devices such as batteries, EV chargers, heat pumps, and inverters should be classified as DMDs. Germany’s new EEG regime is a breakthrough for the flexibility of home storage systems.
Tailor technology support schemes: The EU should guide Member States to support smart energy devices that enable demand response. This includes funding for automation, home energy management, electrical panels, wiring and energy sensing. Subsidies may also be offered for flexible solutions bundling like rooftop PV storage, EV charging infrastructure and heat pumps.
Harmonize data communication: There should be standardized communication protocols for demand response for a valuable customer experience. This will encourage widespread adoption with interoperability at the lowest possible cost.
Allow building flexibility to access balancing markets: Balancing services should be procured through competitive processes. At present, limited access for lower voltage buildings and inconsistent market accessibility across the bloc hinder grid stability and reduce the profitability of flexible assets, especially aggregated distributed energy resources (DER).
The complete report can be downloaded for free on the SPE’s website.
In a previous report dated June 2024 titled Mission Solar 2040: Europe’s Flexibility Revolution, SPE had said that the EU can reach 1.2 TW of solar by 2040 with a flexible, electrified system (see Batteries Instrumental For Further Solar Growth In Europe).