Solar energy storage batteries are energy storage devices designed to store energy captured from solar panels. They allow solar electricity to be used whenever power is needed, even at night or during cloudy days. By storing excess energy produced during the day for use at a later time, these batteries improve the viability and reliability of solar energy systems.
The global solar energy storage battery market is estimated to be valued at US$ 14 billion in 2024 and is expected to exhibit a CAGR of 25% over the forecast period 2024-2028.
Key Takeaways
Key players operating in the solar energy storage battery market are Tesla, LG Chem, Samsung SDI, BYD, Kokam, and Fluence Energy. Tesla, in particular, has emerged as a major player in this space with its Powerwall product targeted at residential consumers.
The Solar Energy Storage Battery Market Growth demand for renewable energy sources across both residential and non-residential sectors has been a key factor driving interest in solar energy storage batteries. These batteries allow households and businesses to reduce their dependency on fossil fuels and lower electricity bills by making optimal use of solar power.
Technological advancements focused on improving battery efficiency, life, and reducing costs have also fueled market growth. Lithium-ion storage technologies have seen widespread commercial use on account of their high energy density and long lifespan. Continuous R&D in battery chemistries like lithium iron phosphate and newer battery materials is expected to make solar energy storage more affordable and widespread.
Market Trends
One major trend gaining traction is the use of solar + storage solutions in electric vehicle charging infrastructure. As EVs rise in popularity, battery-powered chargers will be crucial and solar batteries can provide clean, cost-effective power for charging stations.
Modular battery pack configurations is another emerging trend. Pre-engineered modular packs allow for scalable and flexible design of storage systems across different applications and power requirements. This streamlines installation and maintenance.
Market Opportunities
The commercial and industrial sector presents significant growth opportunities for solar + storage, especially in regions with net-metering policies or daytime energy tariffs. Many businesses are installing these systems to reduce energy costs and power operations reliably around the clock.
Community battery storage projects where solar energy from fields is collectively stored and distributed within a community microgrid also provide new prospects. Such models promote self-sufficiency, resilience, and grid stabilization in remote or island locations.
Impact of COVID-19 on Solar Energy Storage Battery Market Growth
The outbreak of COVID-19 pandemic negatively impacted the growth of the solar energy storage battery market in 2020. Strict lockdowns imposed across countries led to closure of manufacturing facilities disrupting the supply chain. This resulted in delayed installations of solar panels and rise in battery costs. Demand from the commercial sector plunged sharply due to closure of offices, malls and other establishments. However, residential sector witnessed steady demand as people worked from home requiring backup storage solutions.
Overall market is estimated to have contracted by around 15-20% in 2020. But the long term outlook remains positive with increased focus on clean energy solutions post pandemic. Government incentives and policies supporting solar rooftop installations are likely to aid recovery. Rising electricity bills are motivating both industrial and commercial customers to adopt on-site storage for offsetting peak demand charges and ensuring power backup. Technological advancements reducing battery costs will further boost adoption. Strategic partnerships between installers and battery manufacturers can help address supply issues.
In terms of value, the Asia Pacific region accounts for the major share of the global solar energy storage battery market currently estimated at over 45%. Countries like China, Japan, India have supported solar power through schemes promoting self-consumption. Abundant sunlight combined with large population centers makes the region an attractive market.
The fastest growing regional market for solar energy storage batteries is expected to be Europe over the forecast period. Strict environmental regulations coupled with falling battery prices are accelerating solar-plus-storage installations. Germany leads solar capacity additions in Europe. Meanwhile United Kingdom aims to reduce carbon footprint significantly by transitioning to clean energy sources including solar. This makes Europe an emerging lucrative market for battery providers looking to expand globally.
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