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Solar Energy and Battery Storage System Market Overview: According to a comprehensive research report by Market Research Future (MRFR), “Solar Energy and Battery Storage System Market Research Report, by Battery Type, End-User, Solar Technology and Region – Forecast till 2027” the market grow at a rate of 8.89% during the forecast period 2020-2027.
Grid-Scale Battery Energy Storage Systems to Reliably Store Solar Power are in High Demand.
The global solar energy and battery storage system market is growing rapidly. Factors such as growing installations of solar power plants connected with the grid and grid-scale battery energy storage systems push the growth of the market. Growing off-grid and on-grid solar panel installations for commercial, industrial, and residential uses drive the solar energy and battery storage system market growth. With the substantially rising demand for reliable and safe power source converters, the market is estimated to garner significant traction in future years.
Manufacturers strive to increase production capacities with improved cost efficiency and a leaner organization supported by new possibilities offered by digitalization. Many solar energy and battery storage system manufacturers are exploring the possibility of expanding their global footprint and portfolio after mastering their inverter research and development.
For instance, recently, on July 07, 2021, Lumea, a commercial arm of TransGrid, announced issuing an expression of interest (EoI) to develop a 300 MW grid-scale battery storage system in Victoria, Australia. The company plans to develop the project without using government funding. The grid-scale battery would help optimize renewable energy use in Victoria and across the National Energy Market.
In another instance, on June 25, 2021, Reliance Industries (RIL – India) announced its foray into solar, battery storage, green hydrogen, and fuel cell production, investing US$ 10 BN. RIL would build an integrated solar photovoltaic (PV) factory, advanced energy storage battery manufacturing unit, green hydrogen, and fuel cell facility in Jamnagar, Gujarat.
Rise in renewables was reassuringly robust amid the COVID 19 challenges. The dependency on fossil-fired electricity could have been reduced dramatically had it not been for such a bounce-back in electricity demand. Market players faced various problems, such as obtaining components required to develop solar energy and battery storage systems, attracting workers from quarantines, and delivering end products.
The coronavirus-driven lockdown disrupted supply chains, creating the scarcity of key raw materials and component production. This, as a result, spiked product prices and lowered the market demand. However, the solar energy and battery storage system industry is rapidly returning to normalcy, witnessing the steadily increasing energy demand. The demand for solar energy and battery storage systems is estimated to increase after the lockdown mandates get relaxed in many countries.
Rising Solar Power System Installations Boost Solar & Battery Storage System Adoption
Renewable energy holds a major share in the overall energy generation market. Most distributed generation successes revolve around renewables. Product standardization, enhanced research & innovations, and increased lab & field tests are major solar energy and battery storage system market trends, ensuing large adoption of these technologies over the years.
Many commercial spaces have implemented distributed energy systems embedded with IoT devices and technologies, such as Blockchain and artificial intelligence (AI), for remote monitoring, managing payments, and security & performance analysis. This, in turn, has created vast market opportunities for solar energy and battery storage systems.
Initial Installment and Maintenance Costs are Major Headwinds
Lack of awareness and mobilization demand (structuring) are major factors affecting the solar energy and battery storage system market growth. Besides, high initial investment requirements and prohibitive costs associated with installing and maintaining solar energy and battery storage systems affect market growth. Shifting from conventional practices requires large-scale community awareness programs and demonstrations, which challenge the market players.
The market is segmented into battery types, solar technologies, connection types, applications, end-users, and regions. The battery type segment is sub-segmented into lead-acid, lithium-ion (Li-ion), sodium-sulfur, and others. Among these, the Li-ion battery type segment accounts for the largest market share, witnessing vast adoption.
The solar technology segment is sub-segmented into photovoltaic, static (I-V), and dynamic (C-V). The connection type segment is sub-segmented into on-grid and off-grid. The application segment is sub-segmented into load leveling, peak shaving, power demand, and others. The end-user segment is sub-segmented into utility, industrial & commercial, and residential.
Asia Pacific region has constantly been dominating the global solar energy and battery storage system market. The market is predominantly driven by the presence of major battery manufacturers providing batteries for the solar energy storage system, such as Hitachi, NEC, Mitsubishi, Toshiba, and Panasonic.
Besides, factors such as increased energy consumption and demand due to the continually growing population and rapid urbanization & industrialization in this region drive the solar energy and battery storage system market growth.
With their massive investments, China and India increase the solar energy and battery storage system market size in the region. Additionally, rising government initiatives to tackle the rising level of pollution foster the adoption of eco-friendly power generation solutions in these countries.
Segmentation of Market covered in the research:
Information by Battery Type (Lead-Acid, Li-ion, NaS) End-User (Utility, Industrial & Commercial, Residential) by Solar Technology, Connection Type, Application, & Region (North America, Europe and Asia-Pacific)
About Market Research Future:
Market Research Future (MRFR) is a global market research company that takes pride in its services, offering a complete and accurate analysis with regard to diverse markets and consumers worldwide. Market Research Future has the distinguished objective of providing the optimal quality research and granular research to clients. Our market research studies by products, services, technologies, applications, end users, and market players for global, regional, and country level market segments, enable our clients to see more, know more, and do more, which help answer your most important questions.