Residential solar shifts from surge to strategy: EUPD report spotlights market leaders
Europe’s residential solar market takes a strategic turn as EUPD Research unveils its third edition of the Market Leadership Study Europe©, highlighting the continent’s top installers, emerging business models, and key sector trends.
August 19, 2025 EUPD Research
EUPD Research has published the third edition of its flagship study, Market Leadership Study Europe©: Last Mile Distributed Solar and Energy Storage, offering a data-backed view of Europe's evolving residential PV and storage landscape. The report captures market dynamics, the performance of leading installers, and emerging trends that are shaping the sector’s future.
The European residential solar market remains highly fragmented, with over 24,000 installers operating across the continent, most confined to national or regional markets. Yet, a small group of companies is rising above the crowd. According to EUPD’s analysis, 1KOMMA5°, Enpal, and E.ON Solar have emerged as Europe’s top residential solar installers based on a combination of factors including installed capacity, sector coupling capabilities (such as battery storage, EV charging, and HEMS), availability of flexible financing options, customer reviews, and after-sales service. The study also considers years of market experience, financial health, geographical presence, degree of vertical integration, and adherence to Environmental, Social, and Governance (ESG) engagements.
“As Europe’s residential solar market evolves, it's important to look beyond growth alone,” said Markus A. W. Hoehner, CEO & Founder of EUPD Research. “Our study considers multiple market indicators to identify companies that are gaining real traction and shaping the competitive landscape.”
1KOMMA5°, Enpal, and E.ON Solar stand out for their scale, digital platforms, and strategic positioning. 1KOMMA5°, founded in 2021, operates around 80 locations worldwide as a one-stop shop for integrated energy solutions. Enpal, Germany’s first renewables unicorn founded in 2017, offers a holistic renewable energy ecosystem
with an AI-based energy trader. E.ON Solar leverages its extensive utility expertise and pan-European reach to offer scalable residential solar solutions.
Statements from Europe’s leading installers provide insight into the strategic thinking behind their market success.
Philipp Schröder, CEO & Co-Founder of 1KOMMA5°, says: “While conventional solar markets in Europe are shrinking and the German economy is in a deepening downturn, 1KOMMA5° is growing against all odds. Heartbeat AI has become the key driver as it reduces electricity costs by up to 85% per connected household, circumventing conventional utilities by accessing the electricity spot market directly. In addition, Heartbeat AI also balances volatile renewable energy and consumption, helping to stabilize the grid.”
“We have successfully reaffirmed our market leadership in Europe”, says Mario Kohle, founder and CEO of Enpal. “Enpal is the perfect partner for households entering the decentralized energy future. Our all-in-one solution and our AI-based energy manager, Enpal.One+, make Enpal unique in the market. Our AI ensures that customers buy electricity when market prices are particularly low – and sell excess electricity exactly when prices are at their peak. My special thanks go to the more than 100,000 Enpal families who have placed their trust in us. Together with them, we are building the largest virtual power plant in Europe.”
Between 2020 and 2024, Europe (EU-27 plus UK, Switzerland, and Norway) installed 236 GWdc of new solar PV capacity. In 2024 alone, 69 GWdc was added. Residential systems under 20 kW have played a key role, contributing 25 GWdc in 2023, about 38% of total new capacity that year.
However, in 2024, the residential solar market experienced a correction. Stabilizing electricity prices, persistently high interest rates, and phased-out support schemes in several countries led to a 20% year-over-year decline in new installations. While this marked a slowdown from previous highs, EUPD expects the market to return to moderate growth in the coming years as underlying drivers remain strong.
The economic rationale for solar remains compelling in many countries. EUPD’s Residential Market Attractiveness Index shows that markets such as Germany, Switzerland, Italy, the Czech Republic, and Belgium offer some of the highest residential solar ROI across Europe. These rankings are based on factors like electricity tariffs, levelized cost of solar electricity (LCOE), and support mechanisms.
At the same time, installers are increasingly differentiating themselves through sector coupling, offering bundled solutions that include PV systems, battery storage, EV charging, home energy management, and heat pumps. According to recent EUPD Research data, 69% of installers in the DACH region (Germany, Austria, Switzerland) now offer HEMS, reflecting growing consumer demand for energy autonomy and load optimization.
Despite solid fundamentals, 2024 was a financially difficult year for many installation companies. A global oversupply of solar modules led to steep price declines. While this benefited consumers, it strained installer margins and devalued inventory. Reduced activity levels across several markets added further pressure, leading some firms to pivot, diversify, or exit altogether.
Consolidation in the European market has been limited so far, but is expected to pick up as competition intensifies and only the most resilient business models prove scalable. With module prices likely to fall further, companies will need to continue refining operations, adjusting business models, and investing in smart service offerings to maintain competitiveness.
In today’s increasingly competitive and complex residential solar landscape, knowing which companies are truly leading the market is essential. The Market Leadership Study Europe delivers exactly that: clear, data-backed insights into the top-performing installers shaping the future of distributed energy in Europe. Designed as a strategic resource for investors, technology providers, wholesalers, and industry decision-makers, the report highlights where momentum is building, who is gaining ground, and how business models are evolving. For anyone looking to stay ahead in the residential solar and storage space, this study is a must-have guide to the market’s most influential players.