Solar Energy Storage Market Size - By Composition (Lead Acid, Lithium Ion), By Installation (On-Grid, Off-Grid), By Application (Residential, Commercial & Industrial, Utility), Capacity & Global Forecast, 2023 - 2032

Solar Energy Storage Market Size

Solar Energy Storage Market size was valued at USD 46.7 billion in 2022 and is forecasted to observe over 15.6% CAGR from 2023 to 2032. Introduction of stringent regulations to promote environment sustainability along with rising demand for energy will complement the industry landscape. Moreover, ongoing technological advancements and cost-competitive strategies within the industry may have a positive impact on business dynamics.

The solar energy storage market growth is owing to the increasing environmental concerns and stringent regulatory environment to reduce emissions. Efforts to implement effective energy conservation measures will further drive market expansion. In addition, continuous improvements and upgrades focused at achieving cost competitiveness have positively influence the industry landscape. The integration of intermittent renewable energy sources combined with the rising electricity demand are some of the key parameters driving the adoption of solar energy storage technologies.

COVID- 19 Impact

The COVID- 19 outbreak has influenced the solar energy storage market growth owing to a decline in the manufacturing processes, labor shortages along with shutdown of facilities and disruptions in supply chain network. Despite the short-term challenges, the long-term outlook for solar energy storage remains positive. The pandemic has highlighted the importance of resilient and decentralized energy systems. The transition to renewable energy and the integration of energy storage are seen as key components of future-proofing energy systems and ensuring energy security. Governments and organizations continue to recognize the value and potential of solar energy storage for enabling a sustainable and resilient energy future.

In response to the prevailing restrictions, companies in the solar energy storage industry have implemented new measures to mitigate the impact and sustain production outputs, which in turn contributes to the business growth. Additionally, favorable government regulations and increased investments in the development of advanced technological systems are expected to drive the recovery and revitalization of the industry.
 

Solar Energy Storage Market Trends

The industry is anticipated to grow owing to rising demand for energy demand across various application verticals coupled with introduction of enhanced technologies to cater to the consumer demand. These units have played a significant role in solar energy storage, especially in off-grid and small-scale applications and are affordable, reliable that make them popular for storing excess solar energy. As the solar energy storage industry evolves, there is a shift towards more advanced and higher-performing technologies and alternatives which is set to influence the industry outlook.

The growing need for grid stability and uninterrupted power supply, together with supportive government initiatives, is augmenting the adoption of lead acid energy storage systems. Furthermore, global inclination for renewable energy integration and the increasing demand for off-grid power solutions will accelerate the solar energy storage market demand.

Solar Energy Storage Market Analysis

Lithium-ion energy storage systems is slated to witness a significant upsurge on account of the ongoing technological advancements along with rising demand for reliable energy storage units across various application verticals. These unis have witnessed significant investments owing to its versatility, allowing its deployment across residential, commercial and industrial sectors. This chemistry offers potential cost reductions through increased production capacity, material advancements, and competitive supply chains. However, the rapid growth of electric vehicles (EVs) and the integration of stationary solar solutions is predicted to contribute to the positive industry outlook for lithium-ion batteries.

The 2,501 to 5,000 kW capacity segment held approximately 18% share of the solar energy storage market in 2022. The favourable regulatory inclination for self-consumption along with introduction of beneficial incentives from the grid operators and distribution companies to manage grid feed-in is estimated to influence the industry dynamics. Moreover, as the integration of battery energy storage (BES) becomes more common due to declining costs, retrofitting batteries with small-scale photovoltaics will drive the demand for energy storage.

The solar energy storage market from > 10,000 kW capacity is poised for significant growth as several nations recognize the need for essential reforms to accommodate the increasing share of variable renewable energy (VRE). The integration of ancillary services into the grid and the establishment of specific markets to compensate for individual services such as primary and secondary frequency reserves and firm capacity is likely to influence the industry expansion. In addition, rising adoption of behind-the-meter storage are expected to have a positive impact on the industry dynamics, further boosting the demand for large-scale solar energy storage systems.

Solar energy storage market from off-grid installation segment will register gains ate nearly 10.1% through 2032. This growth can be credited to rising adoption of renewable energy solutions, including mini-grids and stand-alone systems that are cost-competitive in providing electricity access. Ongoing technological advancements coupled with innovative delivery models have led to significant cost reductions, making them viable for a variety of stakeholders, including local entrepreneurs, communities, and the private sector. Positive regulatory landscape, supported by consumer preferences for self-sustaining and sustainable electricity solutions are some of the key factors shaping the comprehensive growth of the market share for off-grid renewable energy solutions.
 

Regulators worldwide have consistently prioritized the expansion and advancement of plans, reforms, and programs to facilitate the implementation of grid-scale solar projects. Introduction of measures including portfolio standards, clean energy initiatives, green bonds, and renewable certificates have been implemented to promote renewable energy deployment across different regions. While the regulatory and industry prospects indicate significant growth potential, the market is currently experiencing moderate growth owing to ongoing financial challenges.
 

The residential application segment of solar energy storage market will witness an appreciable momentum owing to the rising demand for enhanced technology in the occurrence of storing excess energy in line with shifting consumer’s inclination toward renewable energy. Acceleration electricity demand across remote areas combined with urban and sub urban regions along with upgradation of prevailing energy networks is set to positively influence the industry landscape. Moreover, ongoing technological advancements coupled with increasing R&D investments and expenditure for the product development will further boost the industry dynamics.
 

The North America solar energy storage market reached USD 15.8 billion in 2022. Rising energy prices, along with increasing concerns over the availability and environmental impact, has augmented interest in energy efficient technologies across the region. The industry is propelled by rising energy consumption owing to the increasing urbanization and growing population, continuous drive for technological innovation, coupled with various legislative requirements and harmonization policies focused on energy efficiency, has propelled the industry dynamics. The shift toward clean energy sources and the push for rural electrification have contributed to growth in the industry across the region.
 

Respective governments in countries including China, India, Japan, and South Korea are actively working towards reducing carbon emissions and achieving their energy transition goals. Additionally, the decreasing cost of batteries will serve as an additional incentive for the widespread deployment of clean energy solutions further complement the industry landscape.
 

Solar Energy Storage Market Share

Major players in the solar energy storage market are aiming to make strategic alliances partnerships and collaborations for new and enhanced technological innovations along with focusing on mergers & acquisitions to strengthen their presence in the industry. The key manufacturers operating across the industry include:

• SAMSUNG SDI CO. 
• BMW Group
• BYD Company
• Carnegie Clean Energy
• Primus Power
• Maxwell Technologies
• LG Electronics
• ENERSYS
• Leclanché SA
• BAE Batteries
• Saft
• FIAMM Energy Technology S.p.A.
• NextEra Energy
• Adara Power
• Aquion Energy
• Innova Renewables
• Sol Systems
• ABB
• Tesla
• Siemens Energy
• Schneider Electric
• Honeywell International
• Toshiba Corporation
• Huawei
• ESS

Solar Energy Storage Market News

• In April 2023, Innova Renewables & Schroders Greencoat have joined forces to establish a strategic alliance focused on the development and operation of solar energy storage projects in the UK. The partnership aims to finance and develop utility scale solar and storage projects. This collaboration aims to leverage their expertise and resources to drive the deployment of innovative solar energy storage solutions across the country, contributing to the growth of the renewable energy sector.
   
• In March 2023, Sol Systems, one of the prominent national solar energy company specializing in clean energy project development and operation, unveiled a unique renewable energy procurement and investment strategy in partnership with Google. This innovative approach aims to facilitate the creation of new solar energy projects while also providing benefits to the local communities where these projects are located.
   

This solar energy storage market research report includes in-depth coverage of the industry with estimates & forecast in terms of “MW” & “USD” from 2022 to 2032 for the following segments:

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By Composition

• Lead Acid
• Lithium Ion

By Capacity

• ≤ 50 kW
• 51 to 250 kW
• 251 to 500 kW
• 501 to 1,000 kW
• 1001 to 2500 kW
• 2,501 to 5,000 kW
• 5,001 to 10,000 kW
• > 10,000 kW

By Installation

• On-Grid
• Off-Grid

By Application

• Residential
• Commercial & Industrial
• Utility

The above information has been provided for the following countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • Italy
  • Spain
  • UK
  • Switzerland
  • Austria
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina