Innovation and adaptability crucial for solar market recovery – LCP Delta
Energy transition Solar & battery research
LCP Delta is urging European solar companies and installers to prioritise business models and market strategies that are less susceptible to the boom-and-bust periods we have seen in the past.
The European residential solar market experienced a challenging year in 2024, following a significant boom in 2023. LCP Delta even anticipated that total annual installations of residential rooftop solar systems in Europe would fall by 21% from 3.2 million in 2023 to 2.5 million in 2024.
The Europe-wide downturn is partly due to a fading energy crisis, as well as rising interest rates and inflation, which have strained household budgets and increased borrowing costs. In addition, some countries have scaled back policy incentives.
However, the overall picture in Europe is complex, as LCP Delta’s analysis has uncovered. While some countries, like France, have shown positive growth rates in 2024, others—including Belgium, the Netherlands, and Germany—have been particularly hard hit.
Despite these challenges, LCP Delta expects the residential solar PV market to recover over time, although in the short term, installation levels are unlikely to reach 2023's peak.
To thrive in this environment, market players will need to:
- Differentiate their offerings to capture market share.
- Boost average sales by bundling solar with complementary technologies or services.
- Develop long-term customer relationships to generate value beyond one-time sales.
Dina Darshini, Head of solar & battery at LCP Delta, commented:
