According to our latest market study on "Batteries for Solar Energy Storage Market Analysis and Forecast to 2028 - COVID-19 Impact and Global Analysis - by Battery Type, Application, and Connectivity," the market was valued at US$ 3,149.45 million in 2022 and is projected to reach US$ 9,478.56 million by 2028; it is expected to grow at a CAGR of 20.2 from 2022 to 2028.
Increase in Number of Renewable and Solar Energy Projects Fuels Batteries for Solar Energy Storage Market Growth
The growth of the batteries for solar energy storage market is being driven by an increase in renewable and solar energy projects. The National Energy Administration (NEA) has reported that China installed 25.56 GW of new solar energy projects in the first three financial quarters of 2021, which is a 36.68% year-on-year increase compared to the 18.7 GW installed during the same period in 2020. Rooftop solar installations in China also increased by 64.61% in September 2021 compared to the same period in 2020, reaching 2.14 GW. China has set a target to have more than 50% of its total energy consumption come from renewable power generation during 2021-2025.
According to data from the US Energy Information Administration (EIA), power plant developers and operators plan to add 51 GW of new solar and battery storage projects to the US power grid between 2022 and 2023, accounting for 60% of new power generation capacities. The EIA has also forecasted that 21.5 GW of solar generating capacity will be added to the US power grid in 2022. Additionally, the US Bureau of Land Management (BLM) has announced plans to construct 39 utility-scale solar projects on federal lands in six western states, which will have a combined plant capacity of over 29 GW by the third quarter of 2025. These ongoing solar installation projects are expected to drive the growth of the batteries for solar energy storage market during the forecast period.
The demand for grid energy storage systems is increasing due to infrastructure expansion projects. For example, the Power Grid Corporation of India approved a total investment of US$103.42 million (INR 821.29 crore) on five projects across India in March 2022. In addition, the State Grid Corporation of China planned to invest around US$74.5 billion in power grid projects in June 2022, leading to a surge in demand for grid energy storage systems and boosting the growth of the batteries for solar energy storage market.
Renewable energy sources, such as solar, wind, biomass, waste, and hydropower, play a crucial role in promoting sustainable energy with lower emissions. With increasing awareness of energy conservation, more people are using these sources of energy. Solar energy storage systems are devices that store energy for later use, particularly during energy demand peaks or after sundown. According to the International Renewable Energy Agency (IRENA), the installed capacity of solar energy generated by photovoltaic modules is expected to increase in the coming years, leading to a higher demand for storage solutions and driving the growth of the batteries for solar energy storage market.
The European Commission (EC) has established policies aimed at increasing the production capacity of solar energy generated by photovoltaic systems to 600 GW by 2030 and 2025. As part of its efforts to achieve a 20 GW annual production capacity by 2025, SolarPower Europe has launched the "Solar Manufacturing Accelerator," a platform designed to expedite the implementation of solar photovoltaic manufacturing projects. Besides promoting solar installations, leading players' strategies to increase the deployment of battery storage solutions are also contributing to the growth of the batteries for solar energy storage market.
Key Findings of Study:
The batteries for solar energy storage market analysis has been carried on the basis of battery type, the batteries for solar energy storage market is segmented into lead acid, lithium-ion, nickel cadmium, and others segment. In 2021, lithium-ion segment accounted for the largest market share owing to its featured characteristics such as higher depth of discharge, long lifespan, higher energy density, high efficiency, and less maintenance. The lithium-ion batteries are commonly used in rechargeable cellphones and electric vehicles (EVs), among others. The others segment, which includes flow batteries and nickel-iron batteries, is expected to record the fastest CAGR during the forecast period. On the basis of application, the batteries for solar energy storage market is segmented into residential, commercial, and industrial. In 2021, the industrial segment accounted for the largest market share. Stringent regulatory compliances with upcoming safety mandates and increasing demand for renewable energy storage systems are fueling the growth of this segment. On the basis of connectivity, the batteries for solar energy storage market is bifurcated into off-grid and on-grid segment. The on-grid segment accounted for a larger share of the market in 2021. With growing awareness in the residential sector for adopting solar energy, the demand for battery storage solutions is also on rise which drives the on-grid segment's growth, which further assists the batteries for solar energy storage market growth over the forecast period.
The Asia Pacific region, which encompasses many developing countries, is leading the way in adopting renewable energy. In October 2021, the government of Maharashtra, India, announced its plans to implement a new renewable energy policy to complete 12,930 MW of solar power projects by 2025. The implementation of such upcoming solar projects is driving demand for battery systems, which is fueling the growth of the batteries for solar energy storage market. To gain a comprehensive understanding of the global batteries for solar energy storage market size and its ecosystem, several key market players were analyzed and studied throughout this market report study.
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