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The global solar energy storage battery market size was valued at USD 3.33 billion in 2022. The market size is projected to grow from USD 4.40 billion in 2023 to USD 20.01 billion by 2030, exhibiting a CAGR of 24.2% during the forecast period.
The solar energy storage battery is a crucial component of renewable energy systems. It allows for the efficient capture and storage of excess electricity generated by solar panels for use during periods of low or no sunlight. These batteries, often based on lithium-ion storage technology, store the energy and release it when needed, reducing reliance on the grid and maximizing self-consumption. Solar battery storage systems provide numerous benefits, including increased energy independence, grid resilience, and cost savings by avoiding peak electricity rates. They contribute to the transition towards a cleaner and more sustainable energy future, enabling individuals and businesses to harness the sun's power even when it's not shining.
Disruption in Supply Chain & Slow Down in Commercial Sector Slowed Market Growth
The COVID-19 pandemic has positively and negatively impacted the solar energy storage battery industry. On the negative side, COVID-19 poses a risk to investments made by individuals and small-scale to medium-sized enterprises in renewable energy sources. These investments run a higher risk of delay or cancellation. However, the impact of COVID-19 has highlighted the importance of reliable & resilient energy systems, driving interest in solar systems and battery storage. More people working from home and spending more time indoors resulted in demand for residential solar and battery storage systems. While COVID-19 initially presented challenges, it also created opportunities for the solar energy battery storage industry to adapt, innovate, and contribute to a more sustainable and resilient energy future.
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Global Movement Towards Renewable Energy and Grid Modernization to Spur Market Opportunities
Broad support for renewables and carbon emissions reduction also drives the adoption of solar battery storage solutions. The critical role that batteries can play in offsetting the intermittency of renewables and reducing curtailment is well known. Still, the strength and pervasiveness of the desire for clean energy among all types of electricity customers resulted in a rise in market demand. For example, In November 2021, Panasonic launched EverVolt 2.0, the next-generation solar energy battery storage system. The battery has AC- and DC-coupled, allowing the battery to work on both new and existing solar energy systems. It offers a weatherproof design helping in the easy installation and flexible placement.
Moreover, many developed countries use grid modernization programs to boost resilience in severe weather events, reduce system outages linked to aging infrastructure, and improve overall efficiency. These programs often involve deploying smart technologies within established electrical grids to enable two-way communication, advanced digital control systems, and integration of distributed energy resources.
National Policy Framework across Key Countries Aids Market Growth
Additional opportunities for battery storage providers are arising from national policies to further various strategic objectives. Many countries see renewables plus storage as a new way to lessen their dependence upon energy imports, fill gaps in their generation mix, enhance the reliability and resiliency of their systems, and move toward environmental goals and de-carbonization targets. Some nations, such as Italy and Japan, are actively subsidizing and promoting energy storage as part of broad restructuring efforts to ensure reliability and reduce dependency on international energy companies and imports. These factors promise significant opportunities for solar energy storage battery market growth.
Financial Incentives Provided By Government Entities to Propel Market Growth
The widespread availability of government-sponsored financial incentives in the nations has further reflected policymakers’ growing awareness of the benefits battery storage solutions can deliver throughout the electricity value chain. These incentives appear to be particularly generous in countries that have energy security concerns, such as Italy, which offered a 50 percent tax deduction in 2017 for residential storage installations, or in nations that have an economic stake in battery manufacturing, such as South Korea, where government-supported investment in energy-storage systems.
High Prices and Lack of Standardization Likely to Hinder Market Growth
Like any technology, battery storage is not always economical, and costs are often too high for a particular application. That is to be expected. The problem is that inaccurate perceptions of high costs can block batteries from being considered in the solution set. However, costs have been dropping so quickly that price declines are expected to continue regarding the cost of the battery technology and balance-of-system components. Although these supporting technologies do not generally garner as much press attention, they are just as important as the batteries themselves, and they could represent the next big wave of cost reductions.
Participants in early-stage markets often have to contend with diverse technical requirements and varied processes and policies. Battery suppliers are no exception. This disparity adds to complexity and costs throughout the value chain, making lack of standardization a significant roadblock to further deployment. Standardization could be particularly important to the proliferation of battery storage because of battery balance of charge issues. In other words, they can’t be discharged too far, or they will damage the units; network operators need to know how much power generation is left in a battery at a given time, and recharge/cycle times are different depending on the type of battery employed.
Below 10kWh to Dominate Global Solar Energy Storage Battery Market Share Owing to Wide Adoption in Commercial Application
Based on the capacity, the market segments include below 10kWh, 10-19kWh, 20-29kWh, and above 30kWh. Solar energy battery storage with a capacity of up to 10 kWh and 10-19 kWh holds the dominant global market share owing to their wide adoption in the commercial and residential sectors that meet the store the desired amount of access energy production through solar energy which they can further use for their various applications.
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Commercial Application Holds Dominating Market Size Owing to Increasing Installation
Based on the application, the market can be segmented into residential, commercial, and industrial applications. Commercial applications dominate the global market. Factors such as the increasing focus of businesses to reduce energy costs, achieve long-term energy savings, and store energy from emergency cases is driving the segmental global solar energy storage market trend.
Followed by commercial application, the residential sector holds a substantial market share for solar energy battery storage as it allows homeowners to store excess solar energy generated during the day for use during the evenings or in the event of a power outage. This increased energy independence and resilience appeal to homeowners who want to reduce their reliance on the grid, further driving the demand for solar energy storage. Subsequently, solar energy battery storage is also experiencing significant demand in the industrial sector owing to its reliable power supply to ensure uninterrupted operations.
Asia Pacific Solar Energy Storage Battery Market Size, 2022 (USD Billion)
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The global solar energy storage battery market analysis has been done across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
Asia Pacific dominates the solar energy storage market with economies like China, India, and South Korea. Factors such as a surge in demand for solar energy battery storage driven by the growing adoption of solar power projects, increasing energy needs, grid reliability concerns, and government initiatives promoting renewable energy and energy storage technologies result in regional dominance. Subsequently, in Europe, the focus on energy generation from renewable sources, energy independence goals, grid stability, and favorable policies and incentives is likely to promote the adoption of solar and storage solutions. Furthermore, North America's demand for solar energy battery storage is rising rapidly due to the increasing adoption of solar energy, energy cost savings, grid resilience, and government support and incentives. In Latin America, and Middle East & Africa, the demand for solar energy battery storage is driven by the desire for energy security, grid stability, reducing reliance on fossil fuels, and government initiatives promoting renewable energy.
Key Players Concentrate on Enhancing their Product Capabilities to Meet Customer Demand
The competitive landscape of the solar energy storage battery industry is dynamic and evolving. Several established companies and emerging players are vying for market share. Here are some notable players in the industry. Tesla, LG Chem Solutions, Enphase, Sonnen, SENEC, and others are major players operating in the market. Apart from these major players, numerous regional and emerging companies contribute to the competitive landscape. Product quality, cost-effectiveness, technology differentiation, market reach, and customer support influence companies' competitive positioning in the solar energy battery storage industry. For example, in November 2020, BYD Energy provided advanced energy storage batteries for the California solar power plant with the partnership of Canadian Solar Inc. BYD delivered the lithium-ion batteries storage solution, which acts as the full system integrator of the storage retrofit.
An Infographic Representation of Solar Energy Storage Battery Market
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The solar energy storage battery report's market research presents a comprehensive industry assessment by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches are adopted to make meaningful assumptions and views to formulate the market research report. Furthermore, the report covers a detailed analysis of market segments, including applications and regions, helping our readers get a comprehensive global industry overview.
CAGR of 24.2% from 2023 to 2030
Value (USD Billion) & Volume (MW)
By Capacity, By Application, and By Region
As per Fortune Business Insights, the global market was valued at USD 3.33 Billion in 2022.
The global market is projected to grow at a CAGR of 24.2% over the forecast period.
The market size of Asia Pacific was valued at USD 1.79 Billion in 2022.
Based on application, the commercial application segment holds the dominating share in the global market.
The global market is expected to reach USD 20.01 Billion by 2030.
The key market drivers are the growing adoption of renewable and green energy targets that fuel investments in the solar industry.
The top players in the market are Tesla, LG Chem Solutions, Enphase, Sonnen, and SENEC, among others players.
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