Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Solar Energy Storage Battery Market size was USD 5.5 billion in 2024 and is estimated to reach USD 95.2 billion by the end of 2037, expanding at a CAGR of 24.6 during the forecast period, i.e., 2025-2037. In 2025, the industry size of solar energy storage batteries is evaluated at USD 6.8 billion.
The Paris Agreement aimed at a net-zero emission goal is appealing to end users including residential, industrial, and commercial to invest in renewable energy sources. This clean energy transition is poised to uplift the demand for solar energy storage batteries in the coming years. For instance, the SolarPower Europe study unveils that around 17.2 GWh of new battery energy storage systems (BESS) were installed in 2023 in Europe, a rise of 94% compared to the previous year. The growth is consistently doubling in the past 3 years. The residential segment holds a dominating share of around 63.0%. Country-wise, Germany leads the installed solar energy storage battery capacities, followed by Italy and the U.K. The installed BESS capacities are estimated to increase 7X and reach 260.0 GWh by 2028 in the EU.
The International Energy Administration (IEA) analysis estimates that the energy storage battery deployment is expected to expand 7-fold by 2030 owing to meeting the COP28 targets. Behind-the-meter batteries, utility-scale battery projects, solar home systems for electricity access, and mini-grids add a total of 42 GW of battery storage capacity across the globe. The developing economies are the most opportunistic marketplaces for solar energy storage battery producers. Nearly 400 million of the population are utilizing batterie through decentralized solutions such as mini-grids and solar home systems. The all above statistics highlight that battery storage for energy is gaining positive approaches worldwide and the demand is estimated to expand at a significant growth rate in the coming years.
Solar Energy Storage Battery Market: Growth Drivers and Challenges
Growth Drivers
- Favorable government policies: The supportive government policies in the form of schemes, incentives, and tax credits are pushing the demand for clean energy sources including solar energy batteries. Favorable subsidies are fueling the adoption of battery storage solutions. For instance, the U.S. Department of Energy (DOE) benefitted solar energy system installers with a tax credit of around 26.0% between 2020 to 2021. Furthermore, under the extension of the investment tax credit (ITC), it reached 30.0% for installers between 2022 to 2032. This highlights how government support is estimated to propel the demand for solar energy storage batteries in the coming years. Net metering, rebates, and performance-based incentives are some of the other offerings by the government, which are backing solar energy storage battery sales.
- Smart home and EV trends: The smart home trends and increasing popularity of clean energy solutions are potentially propelling the sales of solar energy storage batteries. The study by Research Nester reveals that the global smart home market is estimated to be calculated at USD 174.0 billion in 2025 and the revenues from the energy management segment are poised to reach USD 16.3 billion by 2029. The swift rise in the adoption of electric vehicles (EVs) is also generating profitable opportunities for solar energy storage battery manufacturers. EV’s large-scale battery integration with the smart home ecosystem offers better energy management. The introduction of vehicle-to-grid technology is a boon to solar energy storage battery manufacturers. The IEA report estimates that the EV battery demand is poised to increase from 0.77 TWh in 2023 to 3.45 TWh by 2030.
Challenges
- Challenges associated with grid integration: The main challenges faced by the key players are associated with grid integration and compatibility. Smart grids offer potential energy management, however, the integration of decentralized solar power and storage systems with existing grid infrastructure poses technical challenges. Thus, compatibility issues with different storage technologies and grid management algorithms are anticipated to hamper the overall solar energy storage battery market growth to some extent.
- High installation and maintenance costs: Solar panel and energy storage systems’ prices are decreasing owing to continuous technological innovations and increasing demand. But, currently, end users in price-sensitive solar energy storage battery markets often find it challenging to invest in these technologies. The installation and maintenance of solar energy storage batteries is price-intensive for budget-conscious customers. Thus, financial challenges are poised to limit the adoption of solar energy storage solutions to some extent in the coming years.
Solar Energy Storage Battery Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
24.6% |
|
Base Year Market Size (2024) |
USD 5.5 billion |
|
Forecast Year Market Size (2037) |
USD 95.2 billion |
|
Regional Scope |
|
Solar Energy Storage Battery Segmentation
Capacity (Below 10kWh, 10-19kWh, 20-29kWh, Above 30kWh)
The below 10kWh segment is foreseen to capture a dominating solar energy storage battery market share by 2037. The residential settings are estimated to be prime end users of below 10kWh solar energy storage batteries. These capacity battery solutions are adequate to energize residential structures, driving home solar systems as an attractive option. Tax benefits and growing awareness are further propelling the adoption of 10kWh solar energy storage batteries. The rising energy costs are necessitating consumers to opt for sustainable and long-term beneficial energy solutions such as 10kWh solar energy storage batteries.
Application (Commercial, Residential, Industrial)
Commercial segment is projected to dominate solar energy storage battery market share of over 55.8% by 2037. Lucrative credits offered by the government are appealing commercial structures to invest in solar energy storage batteries. These solutions substantially aid in reducing electricity bills and also get tax credits from the public authorities. Considering the long-term benefits and meeting huge energy demands, commercial settings are heavily investing in solar energy storage batteries. The Solar Energy Industries Association (SEIA) states that Meta, Amazon, Google, Apple, and Walmart are some of the U.S. companies that are majorly investing in solar energy storage systems. Over 18.0% of solar capacity is secured by the corporate sector. More than 1.8 GWh of battery storage solutions were installed by American corporate giants in the first quarter of 2024.
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Top 5 Companies by Total Solar Capacity |
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Company |
Total MWdc |
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Meta Platforms, Inc. |
5,177 |
|
Amazon |
4,668 |
|
|
2,595 |
|
Apple, Inc. |
1,156 |
|
Walmart, Inc. |
860 |
Source: SEIA
Our in-depth analysis of the global solar energy storage battery market includes the following segments:
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Capacity |
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|
Application |
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Customize this ReportSolar Energy Storage Battery Industry - Regional Scope
Asia Pacific Market Forecast
Asia Pacific in solar energy storage battery market is anticipated to dominate over 55.1% revenue share by 2037. The continuous rise in industrial and urban activities leading to high electricity needs is anticipated to promote the adoption of solar energy storage batteries. Several governments’ efforts to increase the adoption of clean energy solutions to mitigate the use of fossil fuel energy and meet climatic commitments are further backing the sales of solar energy storage batteries. Tax benefits, technological advancements, and reducing costs of clean energy solutions, especially solar are amplifying the overall solar energy storage battery market growth in China, India, South Korea, and Japan.
Innovations in clean energy battery storage technologies are set to uplift the revenues of market players in China. The 14th Five-Year Plan of the country focusing on zero carbon emission is expected to drive the sales of solar energy storage battery solutions. China being a hub for several industries consumes high energy and to mitigate the dependency on fossil fuel electricity the demand for solar energy storage batteries is gaining traction. Apart from this, the strong presence of manufacturers is fueling the solar energy storage battery trade activities. For instance, the Ember Energy Organization study highlights that China’s solar exports accounted for 80.0% of the global solar energy storage battery market share in 2022.
In terms of renewable energy capacity installation, India holds the fourth position owing to supportive government policies and increasing awareness among the public at large. For instance, the India Brand Equity Foundation (IBEF) points out that nearly USD 1.02 billion worth of valuation was invested in the solar power grid infrastructure development in the interim budget of 2024-2025. Furthermore, analyzing the future benefits of solar power, the government is offering significant investments in clean energy solutions. For instance, in February 2024, through a press release, the Ministry of New and Renewable Energy revealed that the Solar Energy Corporation of India Limited (SECI), under its aegis, commissioned the country’s biggest BESS that stores energy using solar. The 40 megawatts (MW) / 120MWh BESS plant with a dispatchable capacity of 100MW AC and an installed capacity of 152.325 megawatt hours is operating in the Chhattisgarh state.
North America Market Statistics
The North America solar energy storage battery market is estimated to expand at the fastest CAGR throughout the forecast period. Continuous technological innovations and the rising popularity of renewable energy sources are fueling the sales of solar energy storage battery systems. The boom in EV trends and smart home ecosystems are further augmenting the demand for solar energy storage battery systems. The climatic commitments and strict emission regulations are also backing the solar energy storage battery trade activities.
The government’s initiatives are directly propelling the sales of solar energy storage battery solutions in the U.S. The battery storage capacities in the country doubled in 2024 says the U.S. Energy Information Administration (EIA). An 89.0% hike was observed by the end of 2024 from 2021. The two leading consumers of energy storage systems in the country are California and Texas. California accounts for 7.3 GW of installed battery storage capacity and Texas for around 3.2 GW.
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Top 10 U.S. States with Most Installed Battery Capacity Megawatts |
|
|
California |
7,302 |
|
Texas |
3,167 |
|
Arizona |
803 |
|
Florida |
561 |
|
Massachusetts |
258 |
|
Nevada |
249 |
|
Colorado |
240 |
|
New Mexico |
238 |
|
New York |
194 |
|
Hawaii |
175 |
Source: U.S. IEA
Clean energy solutions are gaining traction in Canada owing to their zero-emission goals and climatic commitments. Tax credits are uplifting the adoption of solar energy storage batteries in both commercial ns residential settings. The cold weather of the country necessitates high energy consumption and to avoid fossil fuel electricity use most individuals are investing in battery energy storage solutions. Furthermore, the smart home trend and increasing electric vehicle adoption rates are fueling the sales of solar energy storage batteries.
Companies Dominating the Solar Energy Storage Battery Market
- GE Vernova Inc.
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- ABB Group
- Masdar
- Emirates Water and Electricity Company (EWEC)
- Adara Power, Inc.
- Aquion Energy
- BAE Batteries
- BMW Group
- BYD Company
- Carnegie Clean Energy Ltd.
- EnerSys
- FIAMM Energy Technology S.p.A.
- Innova Renewables
- Leclanché SA
- LG Corporation
- Maxwell Technologies
- NextEra Energy
- Primus Power
- Saft
- Samsung SDI Co., Ltd.
- Siemens Energy AG
- Sol Systems
- Tesla, Inc.
The solar energy storage battery manufacturers are employing several organic and inorganic strategies such as new product launches, technological innovations, mergers & acquisitions, partnerships & collaborations, and global expansions to earn high profits. Strategic partnerships are aiding solar energy storage battery market players to reach a wider consumer base. Expansion of projects is further uplifting their revenue shares. Government support and increasing awareness are prime factors propelling the revenue growth of industry giants.
Some of the key players include:
In the News
- In January 2025, the Masdar and Emirates Water and Electricity Company (EWEC) announced the launch of the world’s first large-scale ‘round the clock’ giga-scale project, combining solar power and battery storage in Abu Dhabi. Such projects are set to meet the increasing energy demands across Abu Dhabi.
- In September 2024, GE Vernova Inc. announced the launch of an advanced containerized solution for Battery Enabled Energy Storage (BESS), the RESTORE DC Block. This solution offers improved safety, efficiency, flexibility, and long-term performance.
Author Credits: Dhruv Bhatia
- Report ID: 7214
- Published Date: Feb 21, 2025
- Report Format: PDF, PPT
