Batteries for Solar Energy Storage Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Battery Type (Lead Acid, Lithium-Ion, Nickel Cadmium, and Others), Application (Residential, Commercial, Industrial), and Connectivity (Off-Grid, On-Grid)

Batteries for Solar Energy Storage Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Battery Type (Lead Acid, Lithium-Ion, Nickel Cadmium, and Others), Application (Residential, Commercial, Industrial), and Connectivity (Off-Grid, On-Grid)

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.

Increasing investments in the renewable industry are propelling the batteries for solar energy storage market growth. As per the US Energy Storage Monitor report, 345 MW of new energy storage systems were brought into operation in the second quarter of 2021. For instance, in August 2021, Reliance Industries Ltd planned to invest US$ 50 million in American renewable energy storage company Ambri Inc. to develop cheap alternatives to lithium-ion batteries. Similarly, in September 2021, EDF Renewables North America and Clean Power Alliance signed a 15-year Power Purchase Agreement (PPA) for the Solar-plus-Storage project. The project consists of a 300 MW solar project coupled with a 600 MWh battery energy storage system. In June 2022, the New York State Energy Research and Development Authority (NYSERDA) awarded EDF Renewable North America a 1 GW solar and battery storage contract as part of its 2021 solicitation for large-scale renewable energy certificates. Energy storage developers in the US have plans to attain a capacity of 9 GW in 2022. Thus, such upcoming investment prospects, along with an increasing number of solar energy projects, are augmenting the growth of batteries for solar energy storage market size over the forecast period.

A rise in demand for solar energy is driven by an increase in environmental pollution, and the funding of government incentives and tax rebates to install solar panels. Supportive government policies and regulations for installing solar panels are driving the market. FiT, investment tax credits, and capital subsidies are the prominent policies and regulations boosting the installation of solar plants in countries such as China, the US, and India. China’s Energy Transition Policies 2020 and 14th Five Year Plan, and Japan’s 2021 – Energy Policy are attributed to the growth of the solar power industry. Furthermore, in March 2022, China planned to add a major government fund worth US$ 63 billion to pay off debt subsidies to the country’s renewable power generators. India and other countries, wherein solar energy holds a potential share in its energy mix, have introduced various schemes—including Solar Park Scheme, CPSU Scheme, VGF Schemes, Defense Scheme, Bundling Scheme, Canal bank & Canal top Scheme, and Grid Connected Solar Rooftop Scheme—to encourage the generation of solar power. Thus, the proliferation of this energy segment with such supportive regulations, policies, and incentive schemes is propelling the demand for battery storage solutions which helps drive the batteries for solar energy storage market over the forecast period.

Growing investments in grid-scale battery storage systems are fueling the growth of batteries for solar energy storage market. For instance, in July 2022, Solar Energy Corp. and NTPC successfully executed the tenders for standalone energy storage systems. This initiative would accelerate investment, support domestic manufacturing, and facilitate the development of new business models. In March 2021, Tata Power—in collaboration with Nexcharge, a lithium-ion battery and storage company—installed a 150 KW (kilowatt)/528 kWh (kilowatt hour) battery storage system, offering six-hour storage to enhance the supply reliability at the distribution side and reduce the peak load on the distribution transformers. Thus, such growth prospects in storage solutions is likely to drive the batteries for solar energy storage market over the forecast period.

Key players profiled in the batteries for solar energy storage market analysis are Alpha ESS Co., Ltd.; BYD Motors Inc.; HagerEnergy GmbH; ENERSYS; Kokam; Leclanché SA; LG Electronics; SimpliPhi Power; sonnen GmbH; and SAMSUNG SDI CO., LTD. The adoption of batteries for solar energy storage among commercial, residential, and industrial sector drives the growth of the batteries for solar energy storage market. In June 2022, General Electric announced its plans for expanding its solar and battery energy storage manufacturing capacity to 9 GW per annum. In many countries, government agencies encourage people to adopt solar energy by offering tax credits to those who install rooftop solar panels. Thus, such growing initiatives from key players, along with the rising deployment of solar systems in the industrial sector, are anticipated to drive the batteries for solar energy storage market growth during the projected period.

Asia Pacific held the largest share of the batteries for solar energy storage market in 2021. In October 2021, First Solar, US, announced an investment worth US$ 684 million in a Tamil Nadu-based solar photovoltaic (PV) thin film module manufacturing facility. Similarly, in June 2021, Risen Energy Co. Ltd, a solar power company in China, announced to invest US$ 10.1 billion in Malaysia from 2021 to 2035, with a prime goal of expanding its production capacity. In June 2022, Glennmont (UK) and SK D&D (South Korea) signed a co-investment memorandum of understanding with a plan to invest US$ 150.43 million into solar photovoltaic projects. In addition, in May 2022, Solar Edge opened a new 2 GWh lithium-ion battery cell facility in South Korea to cater to the growing demand for batteries. Thus, such investments in the solar power industry and battery systems are driving the batteries for solar energy storage market dynamics over the projected timeframe.

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.

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