McKinsey: Energy Storage to Become Top 10 Global Industry by 2040

Why This Matters for European Solar Installers

McKinsey's projection that energy storage will become a top-10 global industry by 2040 isn't just a distant forecast—it's a roadmap for your business evolution. For European solar installers, this signals the definitive end of the solar-only era. The EU's push for grid flexibility, combined with volatile electricity prices, means storage is no longer an add-on but a core component of every residential and commercial solar proposal.

Market Context and Implications

We're already seeing this shift in markets like Germany, Italy, and Spain where storage attachment rates for new residential solar installations now exceed 70% in some regions. The EU's upcoming grid codes and the phase-out of net metering schemes across member states are creating structural demand for storage. This $48 trillion revenue projection validates what forward-thinking installers already know: the future is solar-plus-storage, not solar alone.

What Solar Businesses Should Watch For

Three critical developments:

• Supply chain diversification: With China currently dominating battery manufacturing, watch for EU initiatives to build domestic storage supply chains—this could affect pricing and availability.
• Business model evolution: Installers who master virtual power plant (VPP) aggregation and grid services will capture higher margins than those selling hardware alone.
• Regulatory alignment: National implementation of the EU's Electricity Market Design reform will determine how quickly storage becomes economically viable in different markets.

The installers who thrive will be those who position themselves as energy system integrators, not just panel installers. Start training your teams on storage now—the learning curve is steep, and first-mover advantage in local markets is real.