Batteries for Solar Energy Storage Market Price, Demand and Growth 2028

The batteries for solar energy storage market size was valued at US$ 9,478.56 million by 2028 from US$ 3,149.45 million in 2022. It is expected to grow at a CAGR of 20.2% during 2022–2028.

Batteries for solar energy are used to store energy generated by PV panels in residential, commercial, and industrial renewable projects. The batteries improve the systems’ self-reliance and provide power back-ups, and so on. Factors such as a rise in the number of renewable and solar energy projects, coupled with numerous lucrative government incentives, are driving the growth of the batteries for solar energy storage market . In June 2021, Amazon announced 14 new renewable energy projects in Canada, Finland, Spain, and the US to advance its ambition to power 100% of company activities with renewable energy by 2025. It includes 375 MW solar farm, which is the largest renewable energy project in Canada. When it comes online in 2022, the plant is expected to bring Amazon’s capacity in Canada to more than 1 million MWh, i.e., enough to power more than 100,000 Canadian homes. Thus, increasing focus on renewable energy projects to harness solar energy is likely to drive the batteries for solar energy storage market size over the forecast period.

Strategic Insights

Impact of COVID-19 Pandemic on Batteries for Solar Energy Storage Market Growth 

The COVID-19 outbreak dramatically impacted the global economy during its peak in 2020 in its initial days, and the crisis hampered the business activities in manufacturing industries. The power industry has a potential influence on the country’s economy. As a result, the lockdown and slowdown of industrial activities in India and China is primarily attributed to the disruption of the supply chain for various raw materials and goods. India, one of the leading countries in Asia Pacific region in producing solar energy, which imports around 80% of the components for solar power from China. Notably, the US is one of the world's worst-affected countries, and the crisis led to a cascading impact on multiple industries, including IT, automotive, and telecommunication. The operation in these industries was put on hold, which hampered the power demand in the first half of 2020. According to the US Energy Storage Association, around two-thirds of energy storage businesses experienced delays in projects due to COVID-19, which led to an “immediate and potentially devastating” impact. In March 2020, the US government released the third relief and stimulus spending package in response to this unprecedented national emergency, solar, energy storage, and other subsets of renewable energy. Thus, increasing investments in battery technologies for storing the solar energy are likely to fuel the batteries for solar energy storage market in the post-pandemic recovery period.

Lucrative Regions: Batteries for Solar Energy Storage Market Anaysis

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Market Insight – Batteries for Solar Energy Storage Market Demand

Expansion of Grid Infrastructure Projects Drives Market Growth

The expansion of grid infrastructure projects is leading to a rise in demand for grid energy storage systems. In March 2022, TenneT, a Dutch transmission system operator, announced that it will increase its annual investments in grid infrastructure to ~US$ 6.6 billion by 2025. In July 2022, Chile’s grid coordinator CEN awarded 26 grid expansion projects with an investment worth US$ 162 million. In March 2021, Tata Power installed a 150 KW (kilowatt)/528 kWh (kilowatt hour) battery storage system in collaboration with Nexcharge, a lithium-ion battery and storage company, offering six-hour storage to enhance the supply reliability at the distribution side and reduce the peak load on the distribution transformers. Thus, growing initiatives for strengthening the grid projects is anticipated to drive the batteries for solar energy storage market growth over the coming years.

Battery Type-based Insights

The batteries for solar energy storage market has been analyzed on the basis of battery type, application, and connectivity. Based on battery type, the batteries for solar energy storage market is segmented into lead acid, lithium-ion, nickel cadmium, and others. The lithium-ion segment is held the largest market share in 2021, owing to its featured characteristics and associated advantages. The others segment reported the fastest CAGR during the projected period; this category includes flow batteries and nickel–iron batteries. The flow battery is preferable in solar energy storage owing to its longer service life, no standby loss, low maintenance requirements, recyclability and safety, charging characteristics, and modularity. Nickel–iron batteries are also used in solar energy storage applications as they are robust and capable of withstanding overcharge and over-discharge. Moreover, these batteries can attain a high depth of discharge, such as deep cycling, which allows them to remain discharged for long periods without damage. Hence, such featured battery systems are accelerating the adoption of batteries for storing the energy which helps drive the batteries for solar energy storage market over the projected period.

Players operating in the batteries for solar energy storage market are mainly focused on the development of advanced and efficient products.

• In January 2022, BYD won a contract worth US$ 61 million of lithium extraction of up to 80,000 metric tonnes from the Ministry of Mining of Chile. With this, BYD will begin lithium extraction and production to build sustainable ecosystem across Chile.
• In June 2021, Leclanche successfully developed lithium-ion battery modules for e-transport in the marine, railway, and commercial vehicle industries. The company had announced the launch of new production line in Europe for high production volumes.

The batteries for solar energy storage market is analyzed on the basis of battery type, application, and connectivity. Based on battery type, the market is segmented into lead acid, lithium-ion, nickel cadmium, and others. Based on application, the market is segmented into residential, commercial, and industrial. Based on connectivity, the batteries for solar energy storage market analysis is bifurcated into off-grid and on-grid.

The batteries for solar energy storage market is segmented into five major regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2021, Asia Pacific led the market with a substantial revenue share, followed by Europe and North America, respectively. Further, Europe is expected to register the highest CAGR in the batteries for solar energy storage market during 2022–2028. The market analysis helps understand the upcoming trends, new technologies, and macro and micro factors that influence the market growth.

Key players profiled in the batteries for solar energy storage market analysis are Alpha ESS Co., Ltd.; BYD Motors Inc.; HagerEnergy GmbH; ENERSYS; Kokam; Leclanché SA; LG Electronics; SimpliPhi Power; sonnen GmbH; and SAMSUNG SDI CO., LTD. The insights provided by this market report on the batteries for solar energy storage market are likely to help key players to plan their growth strategies accordingly in the coming years.