Solar Energy Storage Solutions Market Size, Share, Analysis, Trends, Growth, 2032

Solar Energy Storage Solutions Industry Prospective:

The global solar energy storage solutions market size was worth around USD 53.73 billion in 2023 and is predicted to grow to around USD 196.56 billion by 2032 with a compound annual growth rate (CAGR) of roughly 15.50% between 2024 and 2032.

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Solar Energy Storage Solutions Market: Overview

Solar energy storage solutions are devices and technologies deployed to store solar energy for use at a later time. The demand for efficient energy storage solutions has been growing rapidly over the years. Solar energy is one of the most common forms of renewable energy used in the present one. It is abundantly available and can be harnessed at a higher rate and amount as compared to other forms of sustainable energy.

However, solar energy may not be readily available in certain situations, such as during rainy weather or in the event of a natural calamity, for instance, a tornado or hurricane. In such situations, solar energy storage solutions prove beneficial since these devices are designed to store energy when sunlight can be harnessed to generate power.

The energy thus stored is used at a later time. The main components of a solar energy storage system include inverters, energy storage systems (ESS), charging controllers, battery management systems (BMS), and monitoring systems. Depending on the residential or commercial application of solar energy storage infrastructure, additional components may be added. The industry for storing solar energy is expected to receive excellent growth momentum during the projection period.

Key Insights:

• As per the analysis shared by our research analyst, the global solar energy storage solutions market is estimated to grow annually at a CAGR of around 15.50% over the forecast period (2024-2032)
• In terms of revenue, the global solar energy storage solutions market size was valued at around USD 53.73 billion in 2023 and is projected to reach USD 196.56 billion by 2032.
• The solar energy storage solutions market is projected to grow at a significant rate due to the growing demand for solar energy across the globe.
• Based on application, the utility-scale segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on the components, the energy storage systems (ESS) segment is anticipated to command the largest market share.
• Based on region, Europe is projected to dominate the global market during the forecast period.

Solar Energy Storage Solutions Market: Growth Drivers

Growing demand for solar energy across the globe will fuel market demand rate

The global solar energy storage solutions market is expected to grow due to the rising investments in harnessing solar energy. Global leaders and modern consumers are aware of the serious repercussions of excessive dependence on non-renewable sources of energy. The impact of global warming and climate change can be observed globally.

In such conditions, the demand for switching to sustainable energy sources such as solar power has escalated in the last decade. Market research indicates that solar power is the leading form of renewable energy compared to other greener alternatives. Solar energy is abundantly available worldwide.

In addition, it is a form of clean energy that does not negatively impact the environment. On the other hand, unlike hydro or wind power, solar energy can be harnessed by individuals for personal use. The infrastructure required for trapping sunlight and converting it into energy is economical and easily available. As per official findings, the total solar energy generated in 2022 worldwide was around one petawatt hour.

Additionally, more investments have been made by governments and individuals to improve the solar energy output rate. In 2022, more than 1.1 million homes across Europe were powered by solar energy. The positive acceptance trend of solar power globally is expected to help fuel demand for energy storage systems.

Increasing government investments in solar power will be essential to shaping the industry's future outlook

Government sectors across the globe are working toward managing growing concerns over rising energy demands, and energy investments backed by governments have increased in the last five years. For instance, in January 2024, the European Investment Bank (EIB) announced signing a loan agreement with Sweden InvestEU. The sanctioned loan is worth EUR 35 million and will be used for innovative solar cell technology developed by Exeger. Such large-scale investments are likely to fuel revenue in the global solar energy storage solutions market.

Solar Energy Storage Solutions Market: Restraints

Cost-related restrictions pose the biggest threat to the industry in the long run

The global industry for solar energy storage solutions is expected to be limited due to the industry’s association with high initial cost of investment. Solar energy storage solutions are expensive to deploy and install. Integrating energy storage systems in the existing energy grid or infrastructure is a resource-intensive task. In addition to this, continuous changes in battery life used for storing solar energy translate to frequent expenses in technology maintenance.

Solar Energy Storage Solutions Market: Opportunities

Rising investments in battery performance improvements and storage solutions will generate growth opportunities

The global solar energy storage solutions market is expected to generate more growth opportunities during the projection period due to investments in battery performance and other aspects of the technology. For instance, in July 2024, Nevada, a US state, announced the hosting of the country’s largest solar plus battery energy storage system project.

The initiative consists of 1.8 million solar panels located at the Gemini site. The panels can generate energy up to 690 megawatts (MW). One of the unique features of the project is the Direct Current (DC)-coupled storage configuration allowing the battery energy storage systems to obtain charge from the solar panels directly.

In September 2024, a research team at the Georgia Institute of Technology developed an affordable iron chloride cathode that has applications in all-solid-state lithium-ion batteries. As per research claims, the technology can improve performance and reduce the cost of large-scale energy storage systems as well as electric vehicles.

Solar Energy Storage Solutions Market: Challenges

Tough competition of rising investments in alternate technologies will challenge the market growth trend

The global solar energy storage solutions industry is expected to be challenged by the rising investments in alternative renewable energy solutions. For instance, the hydropower sector has been growing rapidly over the years. In addition, disruptions in the smooth supply of essential raw materials required for developing solar energy storage energy solutions such as lithium-ion batteries could further complicate the industry’s growth process.

Solar Energy Storage Solutions Market: Segmentation

The global solar energy storage solutions market is segmented based on application, components, and region.

Based on the application, the global market segments are utility-scale, commercial, and residential. In 2023, the highest growth was observed in the utility-scale segment. The growth trend is due to increased large-scale investments in solar energy infrastructure across developed and emerging nations.

For instance, Europe’s solar energy production capacity reached over 260 gigawatts in 2023, as per market reports. Additionally, the residential segment is expected to grow at a faster rate during the projection period.

Based on the components, the solar energy storage solutions industry divisions are charge controllers, inverters, energy storage systems (ESS), monitoring systems, battery management systems (BMS), cooling systems, grid connection & smart meters, and others. 

In 2023, the highest revenue was listed in the energy storage systems (ESS) segment. In the majority of cases, the cost of lithium-ion batteries, an important part of the ESS setup, constitutes around 70% of the total cost of the setup. Fluctuating raw materials prices and growing consumption of lithium-ion batteries across other sectors will drive segmental revenue.

Solar Energy Storage Solutions Market: Report Scope

Solar Energy Storage Solutions Market: Regional Analysis

Europe to stay ahead in the long run as per industry studies

The global solar energy storage solutions market will be led by Europe during the forecast period. In the last few years, Europe has been at the forefront of switching to renewable energy. The region is expected to become carbon neutral by 2050. To achieve the vision, European nations have amplified investments in sustainable energy solutions, including solar power.

In May 2022, Europe announced the launch of the REPowerEU plan. The EU Rooftop Solar Initiative is an integral part of the plan. It requires all new non-residential and public buildings in Europe to be equipped with solar energy solutions by 2029.

Further, the process for permitting the production and installation of solar panels has been simplified. Regulatory measures governing the use of solar panels in non-residential buildings have been made more concrete, leading to greater confidence among the market players.

North America is projected to generate significant results in the solar energy storage solutions industry during the forecast period. The US will emerge as the leading regional market player. Growing solar energy investments along with rising power demand across industrial, commercial, and residential spaces will fuel higher growth in the US. In January 2024, Mortenson and Terra-Gen launched the Edwards & Sanborn Solar + Energy Storage project. The infrastructure of the project is spread across 4,600 acres consisting of 1.9 million First Solar panels.

Solar Energy Storage Solutions Market: Competitive Analysis

The global solar energy storage solutions market is led by players like:

• SolarEdge Technologies
• Tesla Energy
• Fluence Energy
• Powin Energy
• SunPower
• LG Energy Solution
• Eguana Technologies
• Sonnen
• Blue Planet Energy
• Vestas
• Panasonic
• SimpliPhi Power
• Enphase Energy
• BYD
• Generac

The global solar energy storage solutions market is segmented as follows:

By Application

•  Utility-Scale
•  Commercial
•  Residential

By Components

• Charge Controllers
• Inverters
• Energy Storage Systems (ESS)
• Monitoring Systems
• Battery Management Systems (BMS)
• Cooling Systems
• Grid Connection & Smart Meters
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa