The TaiyangNews Distributed & Smart Solar Conference 2025, held on July 29, 2025, explored the shift from basic rooftop installations to advanced, integrated solar, storage, and energy management solutions.
Moderated by TaiyangNews Managing Director Michael Schmela, the panel discussion revolved around unlocking the post-energy crisis growth phase for residential and commercial and industrial (C&I) solar. The panel included EUPD Research Data Manager Ali Arfa, Head of System Integration at SolarPower Europe (SPE) Jan Osenberg; LCP Delta’s Head of Flexibility and Storage, Jon Ferris; and Sigenergy Sales & Solutions Director—UK&IE Luis Castillo.
Here's a transcript of the panel discussion that’s based on the full video, which is available on TaiyangNews’ YouTube Channel.
TaiyangNews: What are the most important lessons the solar and storage industries have learned from the energy crisis in Europe, and how are these shaping the future of residential and C&I markets?
Jan Osenberg (SPE): This is a tough question because the energy crisis actually triggered a strong boom in residential and C&I solar. My main takeaway is the importance of diversification. When the boom slowed down, it became clear that focusing too heavily on a single market segment is risky in such a dynamic environment.
Jon Ferris (LCP Delta): The main lesson is that the path to growth is not linear. The energy crisis created unusually high prices that could not last. Solar demand rises with high prices, while storage depends more on market volatility. Ideally, both drivers should align, but in reality, the industry often shifts between them. What remains clear is that storage provides essential flexibility, even as market frameworks lag. For the residential and C&I sectors, it will be key for self-consumption, resilience, and grid stability.
From my perspective, the crisis highlighted the importance of flexibility. Storage provides that flexibility, but market frameworks are still catching up. For the residential and C&I sectors, storage will be essential for maximizing self-consumption, ensuring resilience, and supporting grid stability.
Luis Castillo (Sigenergy): Diversification is crucial, but equally important is security of supply at both the country and regional levels. Energy must be produced locally, not just centrally or through imports. Renewable energy enables this independence, reducing reliance on external suppliers. For example, the UK’s heavy dependence on imports exposed its vulnerability, and that’s something that must be addressed.
TaiyangNews: Let’s talk about market developments and demand-side dynamics. Many EU solar markets show stagnating demand, with only a few exceptions like France. Yet, even there, anti-solar sentiment threatens growth. What structural or policy shifts are most urgently needed to revive residential rooftop PV, and how can we also boost the much larger potential in the C&I segment?
Luis Castillo (Sigenergy): Solar isn’t always accessible to everyone, either due to infrastructure or financial barriers. I believe simple solutions like balcony or plug-in PV should be allowed everywhere – currently they’re still banned in places like the UK. These require little government funding yet would help in expanding access. Another area is new-build homes. Some countries mandate renewable adoption, but requirements are often weak – like installing just 1 or 2 kW, which is insufficient for today’s household demand. Stronger rules, such as requiring a percentage of roof coverage or a minimum of 3 kW, would make a real impact. For the C&I sector, simplifying and reducing the cost of grid connection applications would help enormously. Right now, in my view, getting new or upgraded capacity is often too complex and expensive.
Jon Ferris (LCP Delta): Building on that, the Great Britain trend towards “zero-bill homes” is promising. Installing just 1 kW is box-ticking, not really adding value to the homeowner or to the system. But if new homes integrate sufficient PV, with electrification of heating, EV chargers, and smart grid connections, they become real assets to the system. I think that's much more important than a simple mandate that can be met in a way that doesn't add value.
Jan Osenberg (SPE): To accelerate rooftop PV, we need faster electrification, through both heat pumps and EVs. Once these are in place, households consume more onsite solar, making PV less reliant on subsidies. They also provide flexibility assets, which is where explicit demand response becomes critical. Aggregators should be allowed to participate in electricity markets, and grid operators must open flexibility services – so the TSOs and the DSOs opening up their markets to flexibility – because then you really see the business case taking up quickly.
This is not just about residential demand, industrial electrification is equally vital, especially for heating processes below 500°C and cooling, where electrification is highly effective.
TaiyangNews: Ali, your research highlights diverging national trends in deployment. How can lagging markets learn from frontrunners, especially since some frontrunners are now pulling back?
Ali Arfa (EUPD Research): Ultimately, everything boils down to the return on investment (ROI) in solar and storage. Taking markets like Italy and Germany as samples, we compared solar LCOE across residential, C&I, and utility segments with retail tariffs. Subtracting LCOE from tariffs gives the “net benefit.” Our analysis showed a clear correlation: markets with higher net benefit – like Germany, Switzerland, Denmark, and Italy – also had higher installation volumes. So, electricity prices and net benefits are key drivers. Having said that, I think managing the electricity prices is also important. Creating some sort of a business model for residential and C&I consumers needs to be paid attention to.
But that’s not enough. Incentives and funding mechanisms also matter. Italy’s “superbonus” is being phased down, and so is Germany’s feed-in tariffs. While PV and storage prices keep falling, purchasing power in many segments, particularly among middle and lower-middle-class households, is also under pressure. Without well-designed funding schemes for these groups and even for lower middle class, adoption will stall.
For C&I, the dynamics are very different. These projects involve MWs, not kWs. Investors assess not only performance, reliability, and cost, but also long-term sustainability and even the financial strength of the manufacturers – they need assurance that suppliers will still be around in 10-20 years. That’s why we’ve also worked on brand leadership and sustainability ratings, to help companies make these strategic decisions.
In summary: electricity prices and ROI drive uptake; funding must support late adopters; and C&I requires confidence in quality and long-term stability of suppliers.
TaiyangNews: Jan’s slides showed rooftop markets expanding, though unevenly compared to utility-scale. Luis, from your perspective, how do you see residential versus C&I across Europe? Where are the conditions most favorable right now?
Luis Castillo (Sigenergy): Both sectors have growth potential, but I see stronger momentum in residential. Around 6 to 8 years ago, homeowners mainly installed PV to cut their bills. Today, it’s no longer just about generation; it’s about energy management. Systems now integrate PV inverters, batteries, heat pumps, EV chargers, and energy management platforms. With access to dynamic tariffs and, in some countries, flexibility markets, homeowners are evolving from consumers to prosumers. This shift opens additional revenue streams and will significantly boost residential demand.
For C&I, the case for PV is straightforward, but storage remains challenging. Unlike in residential or utility-scale systems, the business case for storage in commercial buildings is often less clear and highly case-specific. That said, as technology advances – particularly DC-coupled solutions, automation, and AI – the value proposition will strengthen. Over time, PV and storage will increasingly go hand in hand, driving C&I growth as well.
TaiyangNews: Dynamic tariffs are now available across Europe, with Germany mandating every utility to offer them. But are consumers really embracing these tariffs? Are they considering solar + storage for backup, maybe even with AI optimization?
Jon Osenberg (SPE): I see dynamic tariffs, which largely mirror wholesale prices, attracting interest from consumers who have flexibility, but they’re still very niche because most people don’t want the complexity or risk of managing their energy use daily. What we’re observing instead is a shift toward time-of-use tariffs that encourage specific behaviors – for example, solar owners consuming when prices are low or EV and heat pump users adjusting demand to benefit the system. For the wider mass market, dynamic tariffs don’t really appeal, so the real value comes when tariff data can be fed into automated systems that optimize assets like solar, storage, EVs, and heat pumps. That way, the burden is lifted from consumers, while retailers and service providers can deliver flexibility in a way that’s both practical and attractive.
TaiyangNews: In the UK, retailers like Octopus are proving successful, offering bundled solutions such as solar, storage, and even heat pumps. How are consumers responding to this, and how open are they to these models?
Jon Osenberg (SPE): It really depends on the assets involved, as each has a different level of maturity. Take heat pumps, for example. In Northern Europe, heating demand in winter doesn’t align well with solar generation. Heat pumps are mainly a way of electrifying consumption, but they don’t naturally lend themselves to optimizing self-consumption.
EVs, on the other hand, are much more advanced in this regard. Smart charging has quickly become standard, whether via controllable charge points or vehicles themselves shifting charging times to align with market prices. EV owners are generally comfortable handing over some control to retailers or optimizers, provided their core needs are met. For instance, if a car requires 2 hours of charging overnight, users don’t mind which hours are used, as long as the vehicle is ready in the morning.
There are also opportunities with solar carports – coordinating EV charging with solar production during the day adds another layer of optimization, and consumers have embraced this flexibility rapidly. Heat pumps and other household assets are a bit behind in terms of optimization, but early signs suggest that managing them intelligently will become a growing market.
TaiyangNews: The Energy Performance of Buildings Directive sets a clear mandate and timeline, but how likely is it that member states will implement it properly? Just recently, I read that the Commission might sue 26 Member States for failing to implement the Renewable Energy Directive. What should we expect here?
Jan Osenberg (SPE): Implementation will likely be uneven. Some parts will move forward quickly, while others may face delays, especially in countries where legislation is unclear. In this case, the mandate itself is quite clear and straightforward, but Member States still need time to define the details. A one-and-a-half-year deadline is tight, especially with potential elections in between, so I expect slight deviations from the timeline.
One critical area will be the exemption criteria – for example, how governments define payback times or aesthetic suitability of installations. These details will need close attention.
Another important factor will be enabling measures. Support schemes are one element, but there’s more. For instance, governments could allow third-party investors to use rooftops. That way, instead of mandating homeowners to install PV themselves, the obligation would be to make their roof available to an investor. This approach removes the burden of upfront investment for citizens while making better use of unused roof space.
A second enabling measure could be publicly accessible platforms for rooftop availability. Much like public procurement platforms, these could list available rooftops for PV development. Developers would then bid on projects planned for future years. This would open access to more customers, increase competition, improve quality, and drive down costs.
Of course, political dynamics will also play a big role. A green-led government may design very different legislation than a conservative or populist one.
TaiyangNews: What do you feel is the general trend? Do governments see mandatory solar as an opportunity or more of a burden? For example, Israel – despite being in a state of war – recently introduced mandatory solar, citing energy security and cost. How do other national governments approach this?
Jan Osenberg (SPE): Israel is indeed a strong example, and so is the UK. From what I read in the press, the UK government views mandatory solar as an opportunity to lower energy bills and reduce dependence on volatile electricity prices.
In the EU, however, the picture is more mixed. France recently weakened existing solar requirements, for instance, by lowering obligations on parking lots. In Germany, the coalition agreement actually foresees maximizing the use of exemptions to the mandate. And in the Netherlands, discussions are shaped by grid congestion and the heavy fiscal impact of net metering.
Energy security can be a powerful driver, but politics complicate the story. For example, Ursula von der Leyen signs major gas deals with the US, while recent blackouts have hurt the perception of PV as a grid-supporting technology – even though, technically, PV can and does provide support.
So overall, I’d say governments are divided. Some see solar mandates as a clear opportunity, while others treat them cautiously. To shift the balance, we may need political campaigns that highlight the positive role solar can play.
TaiyangNews: Balcony solar is booming – Germany alone has over 1 million systems. People clearly want affordable, simple solutions for self-generation, even if the broader residential market looks flat. How can we best harness and support this grassroots movement?
Ali Arfa (EUPD Research): I think the first step is clear and simple: repeat the message. Awareness and advertisement are crucial. We see all kinds of ads, but not nearly enough about balcony PV. This needs to change. Citizens should repeatedly hear how lucrative a small balcony PV system can be, how much it saves on electricity costs every year. In Germany, for instance, even a small installation has a measurable impact on household bills.
So constant, targeted communication is key. We need to normalize balcony PV in everyday life, make people see it as both affordable and beneficial.
TaiyangNews: Beyond balcony solar, how can we boost residential distributed solar, especially as incentives decline and customer acquisition costs remain high?
Jon Ferris (LCP Delta): It’s less about pushing solar and more about consumers pulling. As electrification of transport, heating, and other assets grows, so does energy demand. That lifestyle shift naturally drives interest in solar for self-consumption and cost savings.
Jan Osenberg (SPE): Exactly. EV adoption is still rising, and fossil fuel boilers are being phased out. With policies like France’s primary energy factor change and Germany’s new requirements, electricity demand will increase. Balcony PV will no longer be enough, pushing many citizens to upgrade to full residential PV systems.
TaiyangNews: Beyond push and pull, what technology or innovation could be a game changer for residential and C&I solar? Or do we already have everything we need?
Luis Castillo (Sigenergy): Innovation will always continue. Homeowners increasingly want integrated solutions where PV, storage, EV charging, and smart load management work together seamlessly. Data visualization, energy optimization, and future-proof hardware are key. For example, systems ready for bidirectional EV charging (V2X) will stand out as the technology matures.
Jan Osenberg (SPE): For me, the game changer is lowering installation costs. Today, more than half of rooftop PV costs come from labor. Standardizing processes, integrating PV into roof construction, reusing scaffolding, or deploying neighborhood-scale installations can cut costs and strengthen the business case.
TaiyangNews: I’ve always been a fan of integrating solar into the building skin, though progress is slow. Maybe mandatory solar could give it a push. What other levers could boost growth?
Jon Ferris (LCP Delta): Integration is also needed at the system level. As inverter-based technologies dominate, we’ll require more grid-forming inverters – not just grid-following ones. This will eventually be essential for grid stability and could open new value streams for solar and hybrid systems.
Ali Arfa (EUPD Research): From the installer side, the demand is clear: greater efficiency, smaller sizes, and interoperable solutions.
TaiyangNews: Let’s do a quick round: one key regulatory measure to really advance rooftop solar.
Jan Osenberg (SPE): Mandates for EVs and heat pumps – the most effective way to drive decarbonization.
Luis Castillo (Sigenergy): For new builds, requirements must be real and enforceable, not just box-ticking.
Jon Ferris (LCP Delta): Interoperability – treating the home as an integrated system, not isolated technologies.
Ali Arfa (EUPD Research): Don’t forget canopies and car parks – not rooftops, but equally important spaces.
Individual presentations from the 4 speakers, as shared during the conference, and a conference summary can be accessed here.
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