The commercial and industrial (C&I) segment has long been considered the “sleeping giant” within the photovoltaics industry. Large available surfaces and load profiles that coincide with the time during which solar energy is generated make C&I an interesting option. However, bureaucratic hurdles and the unclear profitability potential of PV systems has kept demand sluggish.
Ongoing energy price fluctuations, affordable solar technology and the switch to climate-friendly operations by more and more commercial and industrial enterprises has recently kicked off a boom in the C&I segment which also includes combined systems that integrate battery storage and electromobility.
C&I PV has great potential to drive the energy transition. According to Wolfgang Röbig, managing director of solar services provider GIGA.GREEN, only ten percent of the potentially available 350 million square meters of roof surfaces in Germany are being used to produce solar power. If all of these roofs were to be equipped with solar panels, this could save more than 20 million metric tons of energy-related carbon emissions – that is three to four percent of total German emissions.
Companies themselves, too, can greatly benefit from investing in a PV system. Switching the generation of power – and maybe also heat – to PV will make companies less dependent on electricity market price fluctuations and give them long-term planning certainty at low energy costs. Consuming solar power produced on premise also considerably improves a company’s carbon footprint. Another positive effect of installing PV on a commercial roof is that it adds value to the property.
Across Europe, energy prices are increasingly posing a risk for commercial and industrial companies. Since the start of the energy crisis in 2021, the costs of various energy carriers, such as electricity and natural gas, have skyrocketed. While some of the prices have since reverted to pre-crisis level, the fragmented geopolitical situation involving countries that supply Europe with energy carriers such as crude oil or natural gas, means that the future of electricity prices continues to become more and more complex and incalculable. Many companies are looking to hedge against future price surges and opt to cover their demand by producing their own solar power.
As many companies are choosing – or are obliged to – become more climate-neutral, installing a company solar installation is the logical conclusion. The EU sustainability reporting obligation forces many companies to curb their emissions, and many are willing to take voluntary decarbonization measures. Switching to a climate-friendly electricity and energy supply is a measure that is relatively straight-forward and often brings financial benefits.
The ongoing digitalization is giving the C&I segment an additional boost: Smart energy management systems that control PV installations in connection with energy storage and/or electromobility solutions analyze a company’s load profile and adapt the generation and storage of solar power to consumption accordingly.
There is no hard-and-fast definition of what falls into the C&I segment, but a general assumption is that these are installations with an output between 30 and 750 or even up to 1,000 kilowatt-peak (kWp). These installations can be conventional roof-mounted systems or parking lot installations, or else free-standing installations on company and commercial buildings and properties.
The C&I market is on the up: According to the European Market Outlook for Solar Power 2024–2028, a market survey published by SolarPower Europe, the European industry association, C&I accounted for 39 percent of all deployment in 2024, up from 36 percent in 2023. Some EU markets excelled in the C&I segment in 2024 by showing much more dynamic growth. EUPD Research, a think tank, wrote in their study Understanding EPC’s Perspectives on the C&I Solar Market in Six EU Country Markets that Germany saw 48 percent of the capacity installed in 2024 in the C&I segment, Italy 43 percent, France 70 percent and the Netherlands 55 percent. In a forecast, EUPD Research expects the European C&I sector to grow from 33 gigawatts (GW) of annual PV installations to more than 40 GW by 2029. If this level of deployment materializes, this will save up to 88 million metric tons of CO₂.
C&I PV provides companies with a high potential for decarbonization and makes best use of available roof space and sealed areas. Many EU countries have recognized the importance of exploiting these benefits and have introduced streamlined processes and benefits for PV in the C&I sector. Cases in point are the German Solar Package I introduced in 2024, which scrapped mandatory invitations to tender, provided better grid connections and introduced higher feed-in tariffs, and France, where the 2023 Décret Tertiaire brought about mandatory energy savings for commercial and office buildings and new feed-in tariffs.
Commercial and industrial companies increasingly opt for PV installations in combination with battery storage and e-mobility solutions to generate the greatest savings potential. Battery storage systems can drive up the on-site consumption of solar power, reducing consumption peaks in the process. This method called peak shaving brings marked financial benefits because the grid charge for grid-supplied electricity is frequently based on the highest peak load. Companies can increase their level of electrification by integrating their vehicle fleet, so that company cars or employees’ private vehicles can use the solar power generated on site to charge their vehicles. The next step would then be to offer vehicle-to-grid solutions, thus opening up additional business models that support grid stability. Providing primary control reserves from a storage device is another conceivable business model.
In addition, PV can be used across sectors in commerce and industry to provide heating and cooling via heat pumps, thus representing a cost-effective alternative to gas-fired boilers.
To coordinate the different system components in a way that makes them profitable, energy management systems must be employed to analyze generation and loads, and to use this analysis as a basis for controlling storage and consumption.
There are still obstacles for the C&I market – despite favorable framework conditions. Such obstacles include complex approval processes and other administrative hurdles, with major differences between different European countries. And the C&I sector is also affected by grid connection issues: A lack of capacities, lengthy registration processes, curtailment and high grid connection or grid connection expansion costs hinder the implementation of PV projects in commerce and industry. We should also not forget that the initial investment costs present an added obstacle.
Intersolar Europe, the world’s leading exhibition for the solar industry, showcases solutions for implementing PV installations combined with battery storage systems, electromobility and energy management for commerce and industry. Under the motto “Connecting solar business” global market leaders present their latest product developments, as well as trends and business models. These organizations include manufacturers, suppliers, distributors, installers, service providers, project developers, planners and start-ups. Intersolar Europe will take place from May 7–9, 2025 as part of The smarter E Europe, Europe’s largest alliance of exhibitions for the energy industry, at Messe München.
