batteries for solar energy storage Market

The batteries for solar energy storage market size is projected to reach 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.

The batteries for solar energy storage market is experiencing growth due to increased investments in the renewable industry. In the second quarter of 2021, 345 MW of new energy storage systems were installed, according to the US Energy Storage Monitor report. To develop less expensive alternatives to lithium-ion batteries, Reliance Industries Ltd has planned a US$50 million investment in Ambri Inc., an American renewable energy storage company. Additionally, EDF Renewables North America and Clean Power Alliance signed a 15-year Power Purchase Agreement in September 2021 for a 300 MW solar project coupled with a 600 MWh battery energy storage system. In June 2022, EDF Renewable North America was awarded a 1 GW solar and battery storage contract by the New York State Energy Research and Development Authority. In 2022, energy storage developers in the US aim to reach a capacity of 9 GW. Therefore, the growth of the batteries for solar energy storage market is being fueled by increasing investments in the renewable industry and the rise in solar energy projects.

The batteries for solar energy storage market is experiencing growth due to an increased demand for solar energy, driven by the rise in environmental pollution and the funding of government incentives and tax rebates for solar panel installations. Supportive regulations and policies from governments are playing a significant role in driving the market growth, with prominent policies including FiT, investment tax credits, and capital subsidies being implemented in countries like China, the US, and India. China's Energy Transition Policies 2020 and 14th Five Year Plan, and Japan's 2021 Energy Policy are also contributing to the growth of the solar power industry. Additionally, in March 2022, China announced a major government fund worth US$ 63 billion to pay off debt subsidies to the country's renewable power generators. India and other countries are also encouraging solar power generation through various schemes such as the Solar Park Scheme, CPSU Scheme, VGF Schemes, Defense Scheme, Bundling Scheme, Canal bank & Canal top Scheme, and Grid Connected Solar Rooftop Scheme. As a result, the batteries for solar energy storage market is expected to grow significantly due to the increasing demand for battery storage solutions to support the proliferation of this energy segment, supported by such regulations, policies, and incentive schemes over the forecast period.

Investments in grid-scale battery storage systems are boosting the growth of the batteries for solar energy storage market. In July 2022, Solar Energy Corp. and NTPC successfully completed tenders for standalone energy storage systems, which would accelerate investment, support domestic manufacturing, and facilitate the development of new business models. Another example is Tata Power's collaboration with Nexcharge to install a 150 KW/528 kWh battery storage system in March 2021, which improved supply reliability and reduced peak loads. The batteries for solar energy storage market is driven by commercial, residential, and industrial sectors' adoption of battery storage solutions.

The market's key players include Alpha ESS Co., Ltd., BYD Motors Inc., HagerEnergy GmbH, ENERSYS, Kokam, Leclanch? SA, LG Electronics, SimpliPhi Power, sonnen GmbH, and SAMSUNG SDI CO., LTD. General Electric announced plans to expand its solar and battery energy storage manufacturing capacity to 9 GW per annum in June 2022. In addition, many countries offer tax credits to individuals who install rooftop solar panels to encourage the adoption of solar energy. These factors, combined with the increasing deployment of solar systems in the industrial sector, are expected to drive the batteries for solar energy storage market's growth in the projected period.

The Asia Pacific region dominated the batteries for solar energy storage market in 2021, as evidenced by the significant investments made by companies such as First Solar, Risen Energy Co. Ltd, and Solar Edge in various solar-related projects. For example, First Solar announced a US$ 684 million investment in a solar photovoltaic thin film module manufacturing facility in Tamil Nadu, India, in October 2021. Risen Energy Co. Ltd revealed plans to invest US$ 10.1 billion in Malaysia between 2021 and 2035, aimed at expanding its production capacity. Similarly, in June 2022, Glennmont (UK) and SK D&D (South Korea) signed an MOU to invest US$ 150.43 million in solar photovoltaic projects. Solar Edge opened a new 2 GWh lithium-ion battery cell facility in South Korea in May 2022 to meet the growing demand for batteries. Hence, such investments in the solar power industry and battery systems are expected to fuel the growth of the batteries for solar energy storage market over the forecast period.

The batteries for solar energy storage market analysis is based on 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 batteries for solar energy storage market is segmented into residential, commercial, and industrial. Based on connectivity, the market is bifurcated into off-grid and on-grid. Based on geography, 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 the largest market share, followed by North America, respectively. Further, Europe is expected to register the highest CAGR in the batteries for solar energy storage market during 2022-2028. The key insights provided by this market report for the batteries for solar energy storage market demand are likely to help the key players to plan their growth strategies accordingly in the coming years.