First of all, I suggest you to disregard the figure you referred to. It could only makes things more complicated than they really are. In atomic physics, emission/absorbtion spectra are experimentally obtained using lamps based on gases under low pressure. Low pressure allows to consider single particles as free, i.e. not interacting. For this reason atoms are dealt with as isolated. The electomagnetic spectra result on the allowed transitions between electronic states of the atomic system. Now, the more probable a transition is, the more loud is the intensity for corresondent line you see in the spectrum (I suggest to search Balmer series in google images). This is because every atom in the gas is behaving the same way as long as gas is made of identical particles. This issue is known as the "degeneration" in the gas or, better, in its energy spectrum.
Now, let the pressure rise up. What does it change in the spectrum? Experience tells us that lines in the spectrum becomes less narrow than before. It is a really gradual process but is a matter of fact. We talk of this other phenomenon as of the "degeneration removal". It results on the interactions between particles (first weaker and than stronger and stronger as pressure grows up). So, system behaviour is really sensitive to whatever interactions are present.
Quantitatively, physicists are used to face this kind of problem, beginning from results given for simplest ones (free particle gas) and than applying where possible "perturbations" to the system (strongly interacting gas).
It is very easy to forecast what happened in a phase transition from a gas to a system even more interacting like a liquid or a solid.
The result you can argue with me is that the degeneration in the energy spectrum is defintely removed and the energy levels (lines in spectrum) are much less intense and narrow. More precisely, for a crystal system, you will find out a continuum of values caused by interactions and its periodical properties. They're referred to as energy bands of the electronic states of a crystal.
This theory is really powerful because it can justify many properties of the cristal (optical, electrical, thermal... ).
Solid state physics is one of the most meaningful (and clearly the most ordinary as the system it deals with) proof for the validation of quantum mechanics!