Distributed Solar Entering New Era Of Intelligent Integration

The distributed solar market has matured beyond the post-energy crisis surge. Attention is now turning to smarter, integrated solutions that merge generation, storage, and energy flexibility. At the TaiyangNews Distributed & Smart Solar Conference 2025 on July 29, 2025, industry leaders examined emerging technologies, evolving business models, and supportive policies to trigger a next phase in residential and C&I solar, especially after the considerable drop in the small rooftop segment over the last 2 years. 

After China led the world in H1 solar installations, delivering around 200 GW in the initial 5 months, EUPD Research Data Manager Ali Arfa anticipates a market slowdown in H2 2025 across various markets. This is mostly because China saw record volumes deployed before it changed the solar market design recently (see China Solar Installations: From 100 MW In 2009 To 1 TW In 2025), but also because the US, Germany, and Italy have been facing weakening residential PV demand, which continues to dampen total installation volumes. While the C&I and utility-scale segments remain mostly resilient, many European markets have been more exposed due to their historical reliance on residential uptake, which has dropped after a strong hike during the energy crisis. Now that the power prices have normalized, the government has slashed incentive schemes. Nevertheless, demand for storage is increasing across various markets, although here too, strong growth is in front of the meter for utility-scale applications. Arfa pinned it to grid flexibility needs, blackout resilience, and energy price volatility. 

Drawing from EUPD’s InstallerMonitor Survey for PV and ESS, Arfa presented insights from some key European PV markets with varying consumer behavior patterns. He shared that 93% of installers in Germany now offer smart home and heat pump solutions, signaling a strong shift towards integrated energy systems, going by the market demand. Markets like Poland, Romania, and Bulgaria remain price sensitive as end consumers look for affordability. 

Sharing some major feedback points received from various installers, Arfa emphasized that manufacturers must align with installer insights to meet evolving residential and C&I segment needs effectively. While the emphasis is on the need for improved technical assistance and after-sales service in Germany, French installers are calling for smaller modules due to installation challenges associated with larger formats that have increased in size dramatically over recent years. Arfa underscored that manufacturers must actively engage with installers, as prosumers tend to trust their advice, and market-specific needs must guide product development. 

Jan Osenberg, SolarPower Europe’s Head of System Integration, provided an overview of market developments and the regulatory environment in the EU. He outlined key shifts in the EU solar landscape, noting a projected 1.4% YoY market decline in 2025, as forecasted in the association’s recent mid-year 2025 outlook (see SolarPower Europe: European Union To Install 64.2 GW PV In 2025). While smaller systems below 250 kW face pressure, the C&I segment above this threshold continues to grow. He said that the ‘residential market is at a low point,’ decreasing from 17.5 GW in 2023 to 10.6 GW in 2025, pointing to problems in the Netherlands, Belgium, Sweden, Poland, and Germany in particular. However, he expects growth in single-digit rates in the coming years, supported by emerging technology and innovative system designs. 

There are issues in the C&I segment, too. Osenberg pointed out varied market performance across the bloc with notable declines in Italy, Sweden, and the Netherlands, largely due to the phasing out of injection support schemes and the transition to market-based compensation and hourly pricing. Whereas the C&I segment in Germany and Poland is somewhat stable, France continues to grow after it was able to fend off a recent attack on its incentive scheme (see France Senate Rejects Proposed Moratorium On RE Projects). 

Investment trends show increasing focus on both behind-the-meter (BTM) and front-of-the-meter (FTM) batteries. Batteries grew at 100% YoY between 2020 and 2023 to an annual market of 22 GWh in 2024, reaching a cumulative of almost 50 GWh. Self-consumption and support schemes drove residential batteries in Denmark, the Czech Republic, Italy, and Austria. However, 79% of the battery development is concentrated in 5 markets, namely Germany, Italy, Austria, Spain, and Sweden. By 2029, SPE projects the cumulative battery capacity to expand to 334 GWh and strongly shift to FTM utility-scale batteries, which had a total share of 24% in Europe end of last year, but are expected to expand to 60% in 5 years, according to SPE’s recently published Market Outlook on Battery Storage. 

Nevertheless, the future market growth in the European Union is supported by regulatory momentum, driven by the Energy Performance of Buildings Directive (EPBD) that targets all of the EU’s building stock to be transformed into zero-emission building stock by 2050. Osenberg stressed that the need of the hour is for the EU nations to finalize laws to implement EPBD. While the theoretical solar potential under EPBD is nearly 200 GW, actual deployment will depend on implementation criteria and renovation rates. According to the directive, EU Member States must finalize their national implementation laws by mid-2026, so that the ‘project’ can start with the first group of buildings, encompassing new public and C&I buildings larger than 250 m2 to be equipped with solar. 

Progress in energy sharing is also visible, with countries like Portugal and France enabling peer-to-peer electricity sales. The EU’s Electricity Balancing Guidelines are being revised to simplify technical requirements and support more flexible participation. Electrification is central to the EU’s decarbonization strategy and is expected to reduce electricity prices and drive demand. The Clean Industrial Deal targets a 32% economy-wide electrification rate by 2030, with a €1 billion auction for industrial projects and an Electrification Action Plan due in 2026. 

Additionally, the EU will revise its energy security framework in early 2026 and publish the European Grids Package, with new guidelines on grid connection and network codes for demand response and generation expected by Q4 2025. This will further reinforce decentralized energy, grid modernization, and drive demand, Osenberg hopes. 

Leading cell and module manufacturers AIKO and JTPV presented technology updates for rooftop solar products. 

Mohammed Alshrouf, AIKO’s Product and Solution Manager, presented the company’s upgraded INFINITE ABC solar panels (490–500 W, 54-cell) for rooftop applications at the conference. The new modules feature copper-based tunneling contacts, a white dual-glass structure, and enhanced aesthetics. The latter is a prerequisite for the residential segment. He claims that these modules outperform similarly sized TOPCon panels by 6% to 9%, offering lower degradation rates (1% in year 1, 0.35% annually), a better temperature coefficient of -0.26%/°C, and superior resistance to shading, micro-cracks, and fire risk. The superior temperature coefficient is thanks to full backside passivated contacts, resulting in a higher cell voltage, he emphasized. These improvements result in greater energy yield, reliability, and safety, reinforcing ABC’s value proposition of high power, profitability, and long-term performance, said Alshrouf.  

AIKO claims its upgraded INFINITE ABC modules offer 6.5% higher capacity, faster 3-year system payoff, and 14.5% greater lifetime energy production and profit compared to TOPCon. Despite higher initial investment costs, ABC modules deliver €8,368 more in lifetime benefits for a typical German household with 8,800 kWh annual usage, claimed Alshrouf. 

 Jietai Solar (JTPV) R&D Manager, Dr. Xinrui An, outlined several innovations enhancing the company’s n-type cell performance. JTPV is a global leader in cell manufacturing with 44 GW in annual production capacity as of Q1 2025. An shared that the key advancements include Wave Back Surface Field (WBSF) for reduced parasitic absorption and improved bifaciality (up to 90%), and half-cut edge passivation (HEP) that increases module power by up to 8 W. JTPV’s first-gen Mono 1 cell integrated features such as graded SiNx passivation, optimized emitter-metal contact, and high-aspect-ratio fingers, which all add up to boost efficiency and mitigate UV degradation. Mono 2 introduced Super Thin Finger+ (15 µm), enabling higher current collection, lower silver use, and improved fill factor and efficiency. The company also validated product reliability through rigorous stress testing. In 2024 alone, JTPV shipped over 38 GW of n-type cells, with cumulative shipments of 60 GW. 

An also discussed the company’s back-contact Tunnel Back Contact (TBC) prototype that he said achieves up to 675 W with >747 mV Voc and is production-ready. He stressed that BC cells are seen as particularly well-suited for distributed generation, especially commercial and industrial rooftops. While currently focused on TOPCon, An said that JTPV has been working on BC technology in R&D. It plans to launch these cells when market conditions align. 

Next to the module as the heart of the solar PV system, the conference also brought the brain into focus – inverters combined with batteries and energy management systems. The Sales & Solutions Director for UK & Ireland at Sigenergy, Luis Castillo, highlighted the AI-driven capabilities of the company’s Sigen app, which helps users proactively manage energy usage and optimize the performance of integrated EV chargers and solar storage systems. Castillo illustrated its effectiveness through case studies from the UK and Poland. 

Introduced in 2024, the Sigen AI mode automatically accesses dynamic utility rates to optimize savings and enhance revenue. In the UK, a 10 kW system with 120 kWh storage showed 10% to 20% cost savings with Sigen AI. In Poland, under arbitrage and self-consumption modes, AI-driven optimization adapted to weather conditions and supported grid resilience via virtual power plant integration. By analyzing historical data on pricing, generation, and consumption, the app refines its predictive algorithms to enhance dynamic pricing benefits for homeowners. 

Castillo also presented SigenStor, a product that integrates EC (energy controller), EV charging, the storage battery, and an energy management system (EMS). Launched in 2023, the top module of this product consists of a PV inverter, battery inverter, and EMS. It can be either single-phase or 3-phase. The following module is a bidirectional EV DC charger, available in either a 12.5 kW or a 25 kW version. Battery pack capacities range between 5 kWh and 9 kWh, and are scalable. The product is available for both residential and C&I applications.

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.