Beyond first-time installations: How Europe’s residential solar Market is shifting toward upgrades and intelligent energy systems

Residential solar PV installations in Europe have declined in 2025 due to market saturation, reduced incentives, and changing consumer behavior. However, momentum is shifting towards complementary technologies such as energy storage, smart energy management platforms, and AI-driven optimization solutions. Prosumers are now prioritizing system upgrades and advancements in decentralized storage to better manage self-consumption and local overcapacity. Installers are also emphasizing seamless integration of ancillary technologies into home automation environments. This shift towards enhancing system performance and control signals a move towards longer-term engagement models for residential suppliers. The section discusses the evolution of residential energy systems, with a focus on the growing demand for self-consumption optimization and energy storage in mature rooftop markets like Germany. There is a shift towards balcony PV and storage systems, particularly among apartment dwellers and urban households. Germany leads in balcony PV adoption, with significant growth in both PV and storage attachment rates. Regulatory easing in other European markets is also expanding access to small plug-and-play systems. Leading brands are innovating to meet evolving customer expectations, with products like AI-enabled storage solutions and home energy networks designed to maximize solar utilization. Installer feedback emphasizes the importance of manufacturers supporting retrofits and seamless integration across energy technologies for sustained market growth. The residential energy market in Europe is seeing a shift towards intelligence, integration, and reliability in products such as energy storage systems and intelligent PV modules. While rooftop PV installations have slowed, there is still active engagement with residential energy technologies, with a focus on long-term reliability and better control over energy use. This shift is reflected in the growing interest in home storage, intelligent energy management, and smaller scale formats like balcony PV and storage. Leading players are responding to this trend by developing innovation-led portfolios to shape the next phase of growth in Europe's residential energy market.

https://www.pv-magazine.com/2026/02/12/beyond-first-time-installations-how-europes-residential-solar-market-is-shifting-toward-upgrades-and-intelligent-energy-systems/