Solar Energy Storage Global Market Report 2025

The solar energy storage market size has grown rapidly in recent years. It will grow from $61.14 billion in 2024 to $70.09 billion in 2025 at a compound annual growth rate (CAGR) of 14.6%. The growth in the historic period can be attributed to rising demand for renewable energy integration into the grid, growing adoption of solar power in residential and commercial sectors, increasing focus on energy self-sufficiency and independence, and rising government incentives and subsidies for solar and storage systems.

The solar energy storage market size is expected to see rapid growth in the next few years. It will grow to $122.61 billion in 2029 at a compound annual growth rate (CAGR) of 15%. The growth in the forecast period can be attributed to growing need for grid stability and reliability, increasing cost-effectiveness of lithium-ion and other advanced batteries, rising deployment of smart grids and distributed energy systems, and growing concerns over carbon emissions and climate change. Major trends in forecast period includes advancements in battery technology, smart energy storage systems, advancements in energy management and optimization, and integration with electric vehicles.

The forecast of 15% growth over the next five years reflects a modest reduction of 0.3% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. Higher costs on lithium-ion batteries, BMS controllers, and thermal insulation materials due to tariffs may reduce the financial viability of solar-plus-storage installations across states. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The growing demand for renewable energy is expected to drive the expansion of the solar energy storage market. Renewable energy is derived from natural, replenishable sources such as sunlight, wind, water, and biomass. The increased demand for renewable energy is largely fueled by heightened environmental awareness, with concerns over climate change and the negative impacts of fossil fuels motivating both governments and consumers to seek cleaner, more sustainable alternatives. Renewable energy plays a crucial role in solar energy storage by ensuring a continuous power supply, storing excess solar energy for use during times when sunlight is unavailable, thus addressing the intermittent nature of solar generation. For example, in March 2022, the U.S. Energy Information Administration projected that the share of renewable energy in power generation would nearly triple, increasing from 21% in 2021 to 44% by 2050, largely due to the growth of wind and solar power. As a result, the rising demand for renewable energy is significantly contributing to the growth of the solar energy storage market.

Leading companies in the solar energy storage market are concentrating on the development of advanced technological solutions, such as utility-scale energy storage systems, to optimize energy management. A utility-scale energy storage system is a high-capacity, sophisticated technology solution designed to store and manage electricity at the grid level, improving energy reliability, efficiency, and the integration of renewables. For instance, in December 2023, Canadian Solar, Inc., a renewable energy company based in Canada, launched SolBank 3.0, a system featuring higher energy density and enhanced safety features for utility-scale applications. SolBank 3 is a compact, high-performance solar energy storage system capable of delivering 2.35 MW of power and a 5 MWh capacity. It incorporates high energy density cells, intelligent liquid cooling, and advanced safety systems to improve reliability. The system offers 45% more capacity and reduces commissioning time by 40% compared to the previous model. Additionally, its optimized thermal management reduces auxiliary power consumption by up to 30%, boosting overall efficiency.

In February 2025, Oil and Natural Gas Corporation Limited (ONGC), an India-based company in the crude oil sector, joined forces with Tata Power Renewable Energy Limited to explore innovative approaches to the rapidly advancing Battery Energy Storage System (BESS) market. This collaboration aims to develop BESS for grid stability and the integration of clean energy in India. Tata Power Renewable Energy Limited, a company based in India, specializes in the development, ownership, operation, and maintenance of renewable energy projects, including solar, wind, hybrid, and storage systems.

Solar energy storage refers to the process of capturing and storing excess solar energy generated by solar panels for use at a later time. This enables the utilization of solar power during periods without sunlight, such as at night or on cloudy days, ensuring a continuous and reliable energy supply. By storing surplus energy, users can reduce their dependence on the grid and lower electricity costs.

The main types of solar energy storage include lead-acid, lithium-ion, flow batteries, and others. Lead-acid batteries are a type of rechargeable battery that uses lead and sulfuric acid for energy storage. These systems can be installed both on-grid and off-grid and come in various capacities, including 50 kW, 51 to 250 kW, 251 to 500 kW, 501 to 1,000 kW, 1,001 to 2,500 kW, 2,501 to 5,000 kW, 5,001 to 10,000 kW, and > 10,000 kW. They are applied in residential, commercial and industrial, and utility sectors.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a notable impact on the utilities sector, particularly across power generation, grid modernization, and renewable energy initiatives. Increased duties on imported equipment such as turbines, transformers, solar panels, and battery storage systems are driving up both capital and operational expenses for utility companies, prompting many to delay projects or pass higher costs on to consumers through increased energy rates. The water and waste management sectors are similarly affected, as tariffs inflate the cost of essential machinery, piping, and treatment technologies. Moreover, retaliatory tariffs from key trading partners have disrupted the supply of critical raw materials - such as rare earth elements vital for clean energy technologies - posing further challenges to the shift toward sustainable energy. In response, the sector is increasingly focusing on domestic procurement, digital transformation, and efficiency-enhancing innovations to control rising costs while safeguarding energy reliability and meeting regulatory demands.

The solar energy storage market research report is one of a series of new reports that provides solar energy storage market statistics, including solar energy storage industry global market size, regional shares, competitors with a solar energy storage market share, detailed solar energy storage market segments, market trends and opportunities, and any further data you may need to thrive in the solar energy storage industry. This solar energy storage market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Major players in the solar energy storage market are Samsung Electronics Co. Ltd., Bayerische Motoren Werke AG, Tesla Inc., LG Electronics Inc., BYD Company Ltd., Panasonic Holdings Corporation, Honeywell International Inc., Mitsubishi Heavy Industries Ltd., Enersys, Enphase Energy Inc., Delta Electronics Inc., VARTA AG, Sonnen GmbH, Trojan Battery Company LLC, Hitachi Energy Ltd., Kokam Co. Ltd., Zen Energy Pty Ltd, Adara Power Inc., Leclanché SA, Aquion Energy Inc., Pylon Technologies Co. Ltd.

North America was the largest region in the solar energy storage market in 2024. Asia Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in solar energy storage report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the solar energy storage market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The solar energy storage market consists of revenues earned by entities by providing services such as battery installation, grid-connected storage, energy management, and backup power solutions. The market value includes the value of related goods sold by the service provider or included within the service offering. The solar energy storage market also consists of sales of products including solar batteries, battery inverters, energy management systems, hybrid inverters, and thermal energy storage. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.