Reading Time: 5 minutes
The solar-plus-storage market is evolving rapidly and will look completely different after a decade. Solar Energy Storage Market size exceeded USD 170 million in 2018 and is anticipated to grow at over 35% CAGR till 2025. Rising environmental concerns in conjunction with strict regulatory mandates to curtail emissions through the integration of effective energy conservation measures will drive the global solar energy storage market growth. Moreover, ongoing technological advancements & upgrades to provide a cost-competitive business outlook will augment the industry dynamics.
According to a market report, the growing renewable energy sector, supportive government policies and schemes for energy storage systems (ESS), and improving energy storage economics are expected to be the major drivers for the energy storage market in the coming years. Moreover, the industry is anticipated to gain momentum on account of a PV installation on small scale systems and substantial growth potential across applications behind the meters.BES integration will increase owing to declining costs along with batteries retrofitting with small scale photovoltaics are the key factors driving energy storage demand. The energy storing system is also valued for its rapid response. The major trend witnessed in the energy storage market is the rise in demand for energy storing systems. Additionally, the rise in demand for unconventional sources of energy generation and growing demand in the power generation sector are the major drivers in the market. With rapid urbanization, there is a growing demand for hydropower, solar energy, and wind energy. The main reason for this is that these sources of energy produce clean power, are readily available, and can meet the growing demand.
Factors such as increasing solar rooftop systems and the rapid cost decline of energy storage systems in the past few years are expected to drive the residential energy storage market over the period. The residential sector is expected to dominate the energy storage market. This segment is mainly dominated by Germany, Australia, and the United States. Several other countries, such as Brazil, Saudi Arabia, Thailand, and Bangladesh have introduced the net metering program and have made certain amendments in the program to encourage solar PV in the residential sector, thereby, creating ample opportunity for the residential energy storage market. India is one of the most promising countries for growth in the housing sector. North America and South Korean are likely to witness a significant growth rate during the forecast period. Renewable energy’s share of installed capacity is forecast to rise to 43% by 2027. Asia Pacific solar energy storage market is anticipated to grow by over 40% by 2025.
Deprivation of effective grid electricity has compelled a considerable percentage of the population to rely on traditional hazardous flame-based light sources across Africa. Furthermore, efforts of financial institutions including the World Bank along with activities of social enterprises will positively impact the market in the region.
The Global Solar Hybrid Inverter Market size is projected to reach USD 12,829.0 Million by 2025 from an estimated USD 7,633.4 million, with 9.04% CAGR till 2025, according to a research report by market research future. The primary growth drivers of the global solar hybrid inverter market include increasing investments in solar power systems and favorable government initiatives and policies. These policies will encourage the use of efficient solar devices including solar hybrid inverters which will boost this market segment. In countries such as India and South Africa, the rising installation of microgrids has positively impacted the solar hybrid inverter market. Many developed countries like North America and Europe are also installing solar hybrid inverters.
Greentech media study predicted that solar systems with batteries are going to be about twice as expensive as traditional grid-direct installations. But Equipment costs for batteries and other hardware are generally flat to slightly down.AC coupling will enjoy at least a temporary boom in popularity as people with existing PV systems seek to add storage.DC coupling is arguably going to become more dominant once the PV-only retrofit market is saturated.
The Lithium-ion segment has benefitted from large scale investments on account of their versatility enabling their deployment across a wide tandem of applications. Besides, large scale development of EVs favored by ongoing stationary solar integration will further complement the industry outlook.< 1000 kW solar energy storage market will gain momentum on account of significant growth potential across applications behind the meter, primarily in small scale systems associated with a PV installation. Furthermore, as BES integration increases favored by declining costs, retrofits of the batteries with small scale photovoltaics is anticipated to emerge as a factor driving energy storage demand. Off-grid renewable energy solutions, including stand-alone systems & mini-grids, have emerged as a prominent, cost-competitive solution to provide access to electricity. Rapid progress has been made as technology costs have plummeted favored by innovation in delivery models & financing catering a diverse set of stakeholders including communities, local entrepreneurs & the private sector, according to global market insights
Various key factors to validate solar energy storage market competitiveness are product flexibility, competitive pricing, reliability, and brand value. Backward and forward integration across the value chain incoherence to integrated distribution channels, self-attained product patents, and extensive R&D investments have also strengthened the business portfolio.
Some of the major players operating in the global energy storage market are Greensmith Energy, S&C Electric Company, LG CNS, NEC Energy Solution, Younicos, Fluence, Advanced Microgrid Solutions, Duke Energy, Convergent Energy, and Power LP, Duke Energy, Tesla, and Nextera Energy, Carnegie Clean Energy, BMW, Kokam, BYD, Primus Power, Samsung, Maxwell Technologies, EnerSys, LG Chem, Leclanche, FIAMM, Vionx BAE, Saft, Adara Power, Ecoult and Aquion. GS Yuasa Corporation, Contemporary Amperex Technology Co. Limited, UNIENERGY TECHNOLOGIES LLC, and Johnson Controls International PLC.
The decade of the 2020s will give rise to mass solar-plus-storage solution deployment, allowing businesses and residents to switch into renewables which are more efficient, protect against outages, save money and live more sustainably. To support grid-scale solar deployments, regulators across the globe focus on the extension and development of plans, reforms, and schemes. Few regulatory measures concerned with renewable deployment are Portfolio standards, clean energy drives, green bonds, and renewable certificates. Although the regulatory and industrial prospects have significant growth potential, the market continues to witness adequate growth subject to the persisting financial impediments.