Battery storage continues its strong upward trajectory, with the C&I segment in particular treating storage as a core part of the energy transition rather than an optional add-on. But for Gerard Scheper, the more consequential shift is not the market recovery itself – it is the political and industrial transformation that is now reaching Europe's solar sector and beginning to redraw the rules under which the industry operates.
From price war to strategic autonomy
Recent market reports indicate that module and PV glass prices have stabilised, although uncertainty persists in polysilicon, where weak futures pricing and continued overcapacity weigh on the market. This suggests the sector may finally be finding a temporary floor after a prolonged period of aggressive price competition. At the same time, Europe is entering a new policy phase.
EU funding closed to Chinese inverters, official word pending
The forthcoming Industrial Accelerator Act and Net Zero Industry Act are no longer concerned solely with sustainability, but increasingly with strategic autonomy and industrial resilience. The current direction points towards future "Made-in-Europe" requirements for key PV components such as inverters, modules and eventually solar cells. The objective is clear: to reduce Europe's dependency on vulnerable global supply chains while strengthening local manufacturing capacity.
A new MIP moment?
The industry now faces a critical question: could this become Europe's next Minimum Import Price moment? Back then, the market was caught entirely off guard. Module shortages appeared almost overnight, and local assembly initiatives emerged across Europe seemingly out of nowhere.
This time, however, the industry appears better prepared. Chinese manufacturers are already exploring European assembly plants, ODM structures, licensing agreements and local partnerships to maintain access to the European market. Ironically, Europe may not become less dependent on Chinese technology, but instead shift towards a hybrid model combining Chinese know-how with localised European production.
Europe still lacks upstream manufacturing
One of the biggest challenges remains Europe's limited upstream manufacturing capacity. While inverter and module assembly capacity is expected to expand significantly by 2030, shortages of solar cells, wafers, ingots and polysilicon are still likely to persist.
A boom decade ahead for PV investment
This means Europe will have to balance industrial ambition carefully against market reality. If regulation moves too fast, supply shortages and price increases could quickly return. If it moves too slowly, Europe risks missing the opportunity to rebuild strategic industrial capacity altogether.
Storage is changing the market structure
Meanwhile, battery storage is fundamentally reshaping the industry. Solar is increasingly becoming part of a broader flexibility and energy management ecosystem. With margins on PV hardware remaining thin, value is shifting towards:
• EMS systems
• Energy trading
• Grid optimisation
• Financing solutions
• Long-term service models
The traditional "box mover" distributor model is slowly disappearing. The market increasingly rewards companies capable of delivering complete energy solutions. The recovery of the solar market is real, but the next phase of the industry will be shaped not only by demand, but by industrial policy, geopolitical positioning and strategic control over the supply chain. (Gerard Scheper/hcn)
