How Can Europe Find Its Place Within the Solar-Plus-Storage-Market?

The global energy storage market is surging, with total deployments growing yearly. By 2030, it will hit the 1 TWh mark.

While the United States and China lead the market, Europe dominates in the residential energy storage solutions—and is set to expand in the continent by tenfold this decade. In 2023, Europe gave its leadership position to America, where there will be more investment in residential energy storage. However, despite the notable innovations in renewable power generation, Europe still needs to gather its full potential in the tremendously growing solar-plus-storage market. 

The solar-plus-storage market pairs the PV system (photovoltaic) with energy storage solutions, including batteries, and offers drivers to a more efficient energy future. This technology allows solar energy to be stored and used when required to reduce grid dependency. Europe is still deploying only 6 megawatts to Europe in 2018, while Australia, the USA and South Korea already established 549 megawatts for FTM solar-plus-storage. 

So, how can Europe position itself within the solar-plus-storage market in upcoming years? Let's explore this in detail.

1.Strengthen Policy Framework and Incentives

One of the critical factors affecting the progress of the FTM solar-plus-storage market in Europe is the Government's policy framework and incentives. The Government only deployed a few auctions to boost the European solar market. Europeans are heading towards solar and wind growth as directed by the European Union's carbon targets. 

Dispatched solar energy production is out of favour. However, only some European solar manufacturers deploy solar storage to achieve their current value incomes. On the other hand, Australia leans towards FTM solar-plus-storage development due to its policy of grants and loans targeting the promotion of large-scale solar-plus-storage projects. 

The US government offered incentives for utility-power purchase contracts with the latest energy storage regulations, making solar-plus-storage economically competitive. 

2.Foster Technological Innovations and Collaboration

To remain competitive in solar-plus-market-storage, Europe must invest in research and development to optimize the affordability and efficiency of both battery storage and solar panel technologies. 

Europe is taking steps towards the solar market by deploying the project TERRE, which will provide opportunities for small developers to deal with solar projects. In the future, they are looking for more projects to get higher value. 

The chief storage analyst in Edinburgh said,

“We expect deployments to pick up in Europe, not only for the smaller developers but the large utilities as well, as more and more solar projects are commissioned subsidy-free, with not only power-purchase agreements but also fully merchant revenues part of the revenue stack.” 

Further, storage analysts claim that the commercial renewable expansion after a time solar-plus-storage will be more on-demand in Europe;

“Pairing storage with solar plants de-risks power volumes by enabling dispatch able power and access to additional revenues. Pairing the technologies on-site, instead of through a virtual power plant, provides further economic benefits through sharing on-site infrastructure."

3.Expand Grid Flexibility and Digitalisation

Europe must invest in advancing its energy grid to capitalize on the advantages of the solar-plus-storage market. The incorporation of distributed energy resources like solar systems and solar panels requires more grid flexibility and innovative digital infrastructure. 

Europe can optimize grid stability and efficiency by investing in innovative technologies that allow real-time inspection, automation and management of energy flaws. 

For example, a reputable brand in Germany, Innotinum, introduced a Smart Energy Management feature for its high-quality battery products. This feature stores real-time power generation and storage data and energy consumption metering data to inspect power grid meters. Consumers can decrease their reliance on the energy grid by charging batteries with surplus photovoltaic power during the day.

Demand response programs, where consumers are granted the ability to fix their energy usage based on grid needs, can further promote the value of solar-plus-storage. By implementing such technologies, Europeans can generate a more dynamic energy grid and boost the potential of renewable energy sources. 

4.Scale Up Domestic Manufacturing of Storage Technology to Reduce Foreign Dependency

One major challenge for Europeans in the solar-plus-storage market is their dependency on other countries to import battery materials. Currently, precious battery materials like lithium, nickel, and cobalt are mostly manufactured in China, the USA, Australia, and South Korea. About 70% of cobalt is manufactured in the Democratic Republic of Congo, which is a problematic country due to political unsuitability.

During high demand, the delivery of essential metal ceased, making it challenging to meet the increasing demand for solar batteries. To fix such risks, Europe should invest in building up domestic manufacturing of storage technology. The European Battery Alliance is significantly investing in such projects to secure a stable supply of storage technologies. 

Furthermore, investing in battery recycling centres helps to reduce mining manufacturing costs and waste disposal. It's an excellent method of minimizing cost and foreign dependency and promoting environmental stability. 

5.Promote Consumer Awareness

Educating and engaging consumers about the advantages of solar-plus-storage are the main aspect of market adoption. Many consumers lack knowledge about the long-term financial savings and environmental benefits of integrating solar with storage. Different government campaigns, education programs, and industry outreach can help boost awareness and motivate consumers to implement these systems.

Furthermore, offering transparent information about the financial incentives and technical requirements of solar-plus-storage systems will encourage consumers to make well-informed decisions. 

Few reputable brands in Germany, like Innotinum, not only offer advanced residential home energy storage solutions at affordable prices but also simplify the installation process by offering turnkey solutions all over Europe. 

Such brands encourage consumers to implement these technologies in their homes in the simplest and easiest ways to lower money bills and minimize grid dependency. Further, they are proteinase sellers that help consumers choose the right recycling technology. 

Bottom Line

In short, Europe has the potential to be a global leader in the Solar-plus-storage market, but few strategic measures are needed to ensure this potential. Following the above actions, Europe can secure a dominant position in the growing world.