Solar Energy Storage Battery Market Size, Share, and Trends 2024 to 2034

Solar Energy Storage Battery Market Size and Forecast 2024 to 2034

The global solar energy storage battery market size is projected to be worth around USD 48.14 billion by 2034 from USD 4.43 billion in 2024, at a CAGR of 24.22% from 2024 to 2034. The solar energy storage battery market growth is attributed to the growing demand for reliable and strong renewable energy storage battery solutions.

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Solar Energy Storage Battery Market Key Takeaways

• Asia Pacific dominated the global solar energy storage battery market with the largest market share of 54% in 2023.
• North America is projected to host the fastest-growing market in the coming years.
• By capacity, the below 10kWh segment held a dominant presence in the market in 2023.
• By capacity, the 20-29kWh segment is expected to grow at the fastest rate in the market during the forecast period of 2024 to 2034.
• By application, the commercial segment accounted for a highest market share of 54% in 2023.
• By application, the residential segment is anticipated to grow with the highest CAGR in the market during the studied years.

Asia Pacific Solar Energy Storage Battery Market Size and Growth 2024 to 2034

The Asia Pacific solar energy storage battery market size was exhibited at USD 2.39 billion in 2023 and is projected to be worth around USD 26.24 billion by 2034, poised to grow at a CAGR of 24.33% from 2024 to 2034.

Asia Pacific dominated the global solar energy storage battery market in 2023 due to factors such as industrialization, urbanization, and rising energy requirements in various markets. Countries, including China, India, and Japan, are expected to have a large share in this progress owing to their advertisement for renewable energy and largest-scale solar projects.

Investments in the region’s infrastructure and the supportive nature of its regulatory structures and policies, and incentives are expected to increase the number of installed solar energy storage battery systems. Furthermore, the rising issues of energy security and environmental pollution add to the increasing need for the solar energy storage battery market in Asia Pacific.

• According to a report published by the Institute for Energy Economics and Financial Analysis, Asia Pacific has a combined investment potential of USD 1.1 trillion in solar PV and offshore wind energy from 2025 to 2050. This investment could lead to the creation of a potential 873 gigawatts (GW) of clean energy, with USD 394 billion supporting solar PV projects totaling 634 GW and USD 621 billion helping to construct 239 GW of offshore wind farms.

North America is projected to host the fastest-growing solar energy storage battery market in the coming years, owing to the strengthened policies, improved technology, and high usage of solar electricity. The United States and Canada have adopted positive actions by governments with incentives that go a long way in promoting the adoption of solar panels and storage battery systems.

In another report by the International Energy Agency, it was stated that the United Nations spent around USD 97 billion on clean energy investment from 2019 to 2023.

Major players in North America are focusing on utility-scale projects and integrating advanced storage technologies to enhance grid stability and efficiency. The growing investment in the power grid and clean energy storage solutions further supports these efforts. Inspired by growing awareness of renewable energy solutions, the regions solar energy storage battery market is experiencing federal and state-level tax credits, rebates, and net metering programs.

• In November 2020, BYD Energy, in partnership with Canadian Solar Inc., provided advanced energy storage batteries for the California solar power plant. BYD delivered the lithium-ion battery storage solution, which acts as the full system integrator of the storage retrofit.
• In August 2024, a next-generation renewable energy company driving the clean energy revolution with battery energy storage, Spearmint Energy announced its partnership with Sungrow USA Corporation. The agreement will add over 1 GWh of energy storage capacity to Spearmint’s projects in Texas by 2025.

Market Overview

The governments of various countries are coming up with friendly policies and incentives to support the increased usage of solar power, which further facilitates the development of the solar energy storage battery market. Advancements in technology, including efficiency enhancement of batteries and cost-cutting in manufacturing and assembly of solar power storage systems, are making solar energy storage battery systems affordable. Growing concern over the environmental impact and the need to reduce dependence on fossil fuels has boosted consumers’ uptake of solar energy storage.

• According to the report from the American Clean Power Association, the prices of lithium-ion solar power storage battery packs have dropped by 82%, from over USD 780/kWh in 2013 to USD 139/kWh in 2023. Additionally, the forecast suggests that the large-scale battery storage capacity will increase from 1 GW in 2019 to 98 GW in 2030.

Impact of Artificial Intelligence on the Solar Energy Storage Battery Market

Technologies, including artificial intelligence (AI), are being employed to improve the effectiveness and creativity of the solar energy storage battery business and, therefore, the productivity of operations. They use AI technology in an attempt to forecast the demands in energy, hence helping them store and distribute solar power efficiently.

Machine learning algorithms learn from large databases and find correlations between large data sets that help the business to make the right decisions that optimize system output. Furthermore, this technology allows for the performance of predictive maintenance that minimizes downtimes and operational expenses in the solar energy storage battery market.

Solar Energy Storage Battery Market Growth Factors

• There is a rising global emphasis on renewable energy sources, particularly solar power.
• Rapid advancements in battery technology and energy management systems are enhancing the efficiency, capacity, and lifespan of the solar energy storage battery market solutions.
• Increasing environmental consciousness among consumers and businesses is spurring the adoption of cleaner energy solutions.
• The upward trend in energy prices is motivating both residential and commercial users to seek alternative energy solutions, such as the solar energy storage battery market products that offer long-term cost savings.
• Recently, the solar energy storage battery market has been gaining momentum due to supportive regulatory frameworks and financial incentives provided by governments and local authorities.

Market Scope

Market Dynamics

Driver

Increasing renewable energy adoption

Increasing renewable energy adoption, particularly solar power, is expected to drive the demand for solar energy storage battery. Legislatures in different countries devise positive attitudes and mechanisms to support solar energy, consequently forcing utilities and businesses to find efficient storage. The changing consumer and business consciousness regarding the adverse effects of their actions on the environment makes solar energy essential by boosting the demand for storage capabilities to increase the usage of renewables.

Restraint

Inadequate grid infrastructure

Impede inadequate grid infrastructure is likely to restrain the growth of the solar energy storage battery solutions market, especially in rural and remote regions, where obsolescent grid structures no longer effectively support contemporary power forms. Most existing power systems are not equipped with sufficient technologies to enable the full exploitation and handling of large-scale solar energy storage systems. This inadequacy prevents the storage batteries from gaining their maximum degree of penetration on the grid since the grid operators struggle to balance the supply and demand, particularly during peak periods. The lack of strong electric networks is also a problem of concern, as it affects the reliability and stability of the grid, which in turn affects practices in the battery storage of solar energy.

Opportunity

High investment in research and development

High investment in research and development is expected to create immense opportunities for the players competing in the market. Governments, private enterprises, and research institutions are funding with the aim of developing new and enhanced storage techniques, including state-of-the-art batteries and energy control systems. These are efforts that seek to enhance the power storage of solar-generated power, as well as its performance and durability. Moreover, in the solar energy storage battery market, public and private partnership consortia enhance things by speeding up the time-to-market of new technologies.

Capacity Insights

The below 10kWh segment held a dominant presence in the solar energy storage battery market in 2023 due to the rising popularity of residential solar energy storage battery systems. This kind of capacity range is appropriate for small uses, such as residential use, where the energy usage is generally low. These are cheap to purchase and install and help homeowners lower their dependence on the grid. Furthermore, the government’s promotion of the installation of solar systems and financial incentives also forced the development of this segment.

The 20-29kWh segment is expected to grow at the fastest rate in the solar energy storage battery market during the forecast period of 2024 to 2034, owing to the rising demand for batteries in residential and commercial areas. This range of battery storage is expected to support larger houses, small companies, and other shared-use community solar power plants, and where electricity usage is higher and more storage is required to provide an uninterrupted supply of electricity. Furthermore, the increase in energy costs and the growing incidence of grid failure enhance the prospects for greater capacity batteries.

Application Insights

The commercial segment accounted for a considerable share of the solar energy storage battery market in 2023 due to homeowners' adoption of rooftop solar panels to achieve energy self-sufficiency. Increasing costs of power in the streets impound pressure on consumers to seek efficient means of power rather than relying on electric power. Rebates, tax credits, and net metering put forward by the government also boosted solar installation in residences, which made solar energy battery storage lucrative for homeowners.

The residential segment is anticipated to grow with the highest CAGR in the solar energy storage battery market during the studied years, owing to the growing need for commercial entities to cut costs and provide energy security. Businesses, including offices, shops, and small business outlets, have, over time, embraced solar energy storage systems as a means of efficiently controlling their energy demand, along with the increasing occurrence of power blackouts.

The ever-growing technological front that improves the scalability and efficiency of commercial-scale storage systems is also expected to boost the adoption rates. Furthermore, the increasing investments due to stringency in energy regulation and to meet compliance, coupled with financial incentives, fuels the demand for solar energy battery solutions in the commercial sector.

Solar Energy Storage Companies

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

Recent Development

• In February 2024, SECI unveiled India's largest solar battery project, showcasing renewable energy innovation in Chhattisgarh. The Solar Energy Corporation of India Limited (SECI), under the Ministry of New and Renewable Energy, successfully launched India's largest battery energy storage system (BESS), which stores energy using solar power. The state of Chhattisgarh will purchase the energy, helping to meet its peak energy demand with green electrons and fulfilling its renewable purchase obligations.
• In May 2023, CATL unveiled the world's first solar-plus-storage integrated solution at the SNEC International Photovoltaic Power Generation and Smart Energy Conference & Exhibition on May 24. This cutting-edge solution eliminates the need for an auxiliary power supply and a cooling system by utilizing CATL’s self-developed solar-BESS converter, heat-resistant cell technology, and advanced self-heating technology.

Segments Covered in the Report

By Capacity

• Below 10kWh
• 10-19kWh
• 20-29kWh
• Above 30kWh

By Application

• Commercial
• Residential
• Industrial

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa