Solar Energy and Battery Storages Market

Global Solar Energy and Battery Storages Market Size (2024-2029)

The Global Solar Energy and Battery Storages Market was worth US$ 12.31 billion in 2023 and is anticipated to reach a valuation of US$ 30.04 billion by 2029 from US$ 14.28 billion in 2024, and is predicted to register a CAGR of 16.03% during 2024-2029.

Current Scenario of the Global Solar Energy and Battery Storages Market

Energy storage is a technology that can be used to provide energy for a variety of household, commercial, and industrial purposes. These energy systems are highly efficient and can be used as needed. A battery energy storage system is a rechargeable battery that stores and distributes energy from a power grid or solar array in numerous applications.

An energy storage system is a device that can securely, efficiently, and easily store various sources of energy. Continuous technical advancements provide a steady supply of energy, and these energy storage technologies are likely to expand significantly in the future. In addition, the market for energy storage systems is growing due to the increasing promotion of renewable energy sources. The expanding emphasis on renewable energy generation is due to rising global energy consumption.

During COVID, the global solar energy and battery storage markets were severely impacted. Manpower dropped as a result of the increase in social distance, which had an impact on market growth. It caused the installation of solar systems to be delayed, as well as the cancellation of new contracts. During the pandemic, consumer spending was severely impacted. COVID placed numerous limitations, causing supply chain disruptions both downstream and upstream. India was heavily reliant on China for solar panel imports. The reliance on China for solar systems, especially during the COVID period, had an impact on manufacturing and supply.

MARKET GROWTH

The Solar Energy and Battery Storages Market are growing due to the rising demand for grid energy storage systems as a result of ongoing grid modernization.

MARKET DRIVERS

The increased demand for grid energy storage systems as a result of ongoing grid modernization is one of the key factors driving market expansion.

Solar and wind energy are the two most common types of renewable energy stored in the bar. Hidden places with clouds and fluctuating wind power rivers, on the other hand, give energy output fluctuations. Such changes necessitate the adoption of a flexible grid system to save energy. The upgrading of GIST requires a battery energy storage system. When power generation exceeds demand, these systems assist grid operators in conserving energy.

These solutions improve the dependability and flexibility of power systems used for electrical energy generation, transmission, and distribution. Because of their high-power density and performance, battery power garage technologies like lithium-ion batteries, waft batteries, and lead-acid batteries necessitate increased setup investments. Lithium-ion batteries are expensive due to their high power density, low self-discharge rate, and low maintenance requirements. However, lithium-ion battery prices are expected to decline in the near future. 

These batteries are also used in electric vehicles (EVs) because they are lightweight, small, and have a large capacity. Furthermore, the high initial capital fee required to produce the batteries is one of the reasons limiting the Solar Energy and Battery Storages Market's growth. The growing number of rural electrification projects around the world provides an opportunity for the Solar Energy and Battery Storages Market to flourish. Electricity is made available in rural and distant locations through electrification.

MARKET RESTRAINTS

The high costs of installing solar systems, as well as the large sums of money necessary for their maintenance, have become the most challenging aspect of the solar sector.

Solar battery storage is now reliant on government taxes as well as government subsidies. The amount of sun rays that reach the earth's surface and strike it is not consistent. It varies depending on the area, time, season, and weather conditions. Furthermore, because the number of rays striking a square foot is so small, a large surface area is required for absorption and energy collection. These variables operate as key roadblocks to market expansion. Reliability, large-scale production, and competitiveness all play a role in choosing PV technology. The market's progress is hampered by the overall climatic conditions and geographical latitudes.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Solar Energy and Battery Storages Market Analysis By Type

Lithium-Ion Batteries, Sodium–Sulfur Batteries, Advanced Lead-Acid Batteries, and Others are the many types of batteries on the market. Because of the high energy and power density, lower standby loss, and enhanced service life and efficiency, the Lithium-Ion Batteries category has a considerable proportion of the market. Furthermore, the lithium-ion-sulfur battery energy storage system provides frequency adjustment, decreased demand charges, grid buffering, and renewable energy integration ideal for on-grid connectivity, all of which contribute to market growth.

Global Solar Energy and Battery Storages Market Analysis By Application

The market is divided into Residential, Non-Residential, Utilities, and Others based on application. Because of the expanding solar power technologies and expansion of solar power electrification projects, the utility segment has a substantial proportion of the market. At the same time, Non-Residential is the fastest-growing sector in the market, owing to increased advanced infrastructure and the rising need for energy security, which is a driving force behind market expansion.

Global Solar Energy and Battery Storages Market Analysis By Installation

The global market for off-grid systems is dominated, with a share of 62 per cent in 2021. These devices are grid-independent and use batteries to store solar energy. Some of the advantages, such as being perfect for isolated locations, providing electricity in rural areas, being cost-effective, having a power backup system, and so on, are propelling the global market forward. As a result, throughout the projection period, it is expected to increase at a CAGR of 8.2 per cent.

REGIONAL ANALYSIS

Because of the increased usage of energy storage technology in the residential sector, the Asia-Pacific region has a big part of the market. This has improved access to electricity for these rural places in the region. As governments in developing economies implement new rules to improve the reliability and quality of home power distribution equipment, APAC's investment in energy storage is likely to skyrocket. Various governments in the region are working to reduce the harmful influence of the energy sector on the environment. These reasons have led to an increase in the use of battery energy storage systems in residential and utility applications, which has boosted market growth.

Because of rapid development and increased utilization of renewable energy resources, urbanization, technological advancement, and US government initiatives such as tax breaks, an act to reduce the cost of electricity covered by the "Public Utility Regulatory Act of 1978," and separate departments to regulate solar-related programs, North America is the second most dominant region in the market. As a result, throughout the projection period, it is expected to grow at a CAGR of 4.9 per cent.

KEY PLAYERS IN THE GLOBAL SOLAR ENERGY AND BATTERY STORAGES MARKET

Companies playing a prominent role in the global solar energy and battery storages market include ABB Ltd., LG Chem Ltd., Samsung SDI Co., Ltd., General Electric Company, Tesla, Inc., AEG Power Solutions, eSolar Inc., Abengoa S.A., BrightSource Energy, Inc., ACCIONA, S.A., Alpha Technologies (U.S.),  and Others.

RECENT HAPPENINGS IN THE GLOBAL SOLAR ENERGY AND BATTERY STORAGES MARKET

• Sungrow's energy storage division will provide battery storage technology to Tata Power Solar for a project in Ladakh, India. The battery energy storage system (BESS) would be erected at Phyang, a village in Ladakh's Lei district near the Pakistan and Chinese borders in the north of India, with a capacity of "up to 60.56MWh."
• For about £4.5 million ($5.6 million), Bluefield Solar an income fund focusing on acquiring and operating renewable energy and storage assets primarily in the UK, purchased two independent 40 MW battery storage projects from Green Hedge Energy. The projects are spread over the counties of Derbyshire and Worcestershire.

DETAILED SEGMENTATION OF THE GLOBAL SOLAR ENERGY AND BATTERY STORAGES MARKET INCLUDED IN THIS REPORT

This research report on the global solar energy and battery storages market has been segmented and sub-segmented based on type, application, installation and region.

By Type

• Lithium-Ion Batteries
• Sodium-sulfur Batteries
• Advanced Lead-Acid Batteries
• Others

By Application

• Residential
• Non-Residential
• Utilities
• Others

By Installation

• On-Grid
• Off-Grid

By Region

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