Batteries For Solar Energy Storage Market Research Report and Outlook by 2028

The market for batteries used in solar energy storage is anticipated to grow significantly, reaching an estimated US$ 9,478.56 million by 2028, up from US$ 3,149.45 million in 2022. This growth represents a compound annual growth rate (CAGR) of 20.2% from 2022 to 2028.

The batteries for solar energy storage market is on an upward trajectory, primarily due to heightened investments in the renewable energy sector. According to the US Energy Storage Monitor report, the second quarter of 2021 saw the installation of 345 MW of new energy storage systems. In a bid to create more affordable alternatives to lithium-ion batteries, Reliance Industries Ltd has committed US$50 million to Ambri Inc., a US-based renewable energy storage firm. Furthermore, in September 2021, EDF Renewables North America and Clean Power Alliance entered into a 15-year Power Purchase Agreement for a 300 MW solar project paired with a 600 MWh battery energy storage system. In June 2022, EDF Renewable North America secured a contract for 1 GW of solar and battery storage from the New York State Energy Research and Development Authority. The goal for energy storage developers in the US for 2022 is to achieve a capacity of 9 GW. Thus, the expansion of the batteries for solar energy storage market is being propelled by increasing investments in renewable energy and the surge in solar energy initiatives.

The growth of the batteries for solar energy storage market is also attributed to the rising demand for solar energy, which is influenced by growing environmental concerns and government incentives such as tax rebates for solar panel installations. Supportive government regulations and policies are crucial in driving market expansion, with significant initiatives like Feed-in Tariffs (FiT), investment tax credits, and capital subsidies being implemented in nations such as China, the US, and India. China's Energy Transition Policies 2020 and its 14th Five-Year Plan, along with Japan's 2021 Energy Policy, are further enhancing the solar power sector. In March 2022, China announced a substantial government fund of US$ 63 billion aimed at alleviating debt for the country's renewable power producers. India and other nations are also promoting solar energy generation through various initiatives, including the Solar Park Scheme, CPSU Scheme, VGF Schemes, Defense Scheme, Bundling Scheme, Canal bank & Canal top Scheme, and Grid Connected Solar Rooftop Scheme. Consequently, the batteries for solar energy storage market is projected to experience significant growth due to the increasing need for battery storage solutions that support the expansion of this energy sector, bolstered by such regulations, policies, and incentive programs throughout the forecast period.

Investments in large-scale battery storage systems are further enhancing 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 will promote investment, support domestic manufacturing, and enable the development of innovative business models. Another notable instance is Tata Power's partnership with Nexcharge to install a 150 KW/528 kWh battery storage system in March 2021, which improved supply reliability and mitigated peak loads. The adoption of battery storage solutions across commercial, residential, and industrial sectors is driving the batteries for solar energy storage market.

Key players in the market 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 in June 2022 to increase its solar and battery energy storage manufacturing capacity to 9 GW annually. Additionally, numerous countries provide tax incentives to individuals who install rooftop solar panels, further encouraging the adoption of solar energy. These factors, along with the growing deployment of solar systems in the industrial sector, are expected to propel the growth of the batteries for solar energy storage market during the forecast period.

In 2021, the Asia Pacific region led the batteries for solar energy storage market, supported by substantial investments from companies like First Solar, Risen Energy Co. Ltd, and Solar Edge in various solar projects. For instance, 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 disclosed plans to invest US$ 10.1 billion in Malaysia from 2021 to 2035 to enhance its production capacity. Similarly, in June 2022, Glennmont (UK) and SK D&D (South Korea) signed a memorandum of understanding to invest US$ 150.43 million in solar photovoltaic projects. Solar Edge also inaugurated a new 2 GWh lithium-ion battery cell facility in South Korea in May 2022 to cater to the rising demand for batteries. Therefore, such investments in the solar power and battery systems sectors are expected to drive the growth of the batteries for solar energy storage market in the coming years.

The analysis of the batteries for solar energy storage market is categorized by battery type, application, and connectivity. The market is segmented by battery type into lead acid, lithium-ion, nickel cadmium, and others. Applications are divided into residential, commercial, and industrial segments. Connectivity is classified into off-grid and on-grid systems. Geographically, the 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 held the largest market share, followed by North America. Furthermore, Europe is projected to exhibit the highest CAGR in the batteries for solar energy storage market from 2022 to 2028. The insights provided in this market report regarding the demand for batteries for solar energy storage are expected to assist key players in formulating their growth strategies in the upcoming years.