Solar Energy Storage Market Report 2026

The solar energy storage market size has grown rapidly in recent years. It will grow from $70.09 billion in 2025 to $80.72 billion in 2026 at a compound annual growth rate (CAGR) of 15.2%. The growth in the historic period can be attributed to increasing rooftop solar installations, early adoption of battery backup solutions, declining lithium-ion battery costs, grid reliability challenges, initial deployment of residential storage systems.

The solar energy storage market size is expected to see rapid growth in the next few years. It will grow to $140.45 billion in 2030 at a compound annual growth rate (CAGR) of 14.9%. The growth in the forecast period can be attributed to increasing demand for renewable energy reliability, expansion of electric vehicle charging infrastructure, growing investments in grid-scale storage, rising focus on energy independence, advancement in long-duration storage technologies. Major trends in the forecast period include rising deployment of lithium-ion storage systems, increasing integration of solar plus storage solutions, expansion of utility-scale battery installations, growing adoption of off-grid storage systems, enhanced focus on grid stability support.

The rising demand for renewable energy is expected to drive the growth of the solar energy storage market in the coming years. Renewable energy is generated from naturally replenished resources such as sunlight, wind, water, and biomass. This growing demand is largely fueled by environmental concerns, as awareness of climate change and the impacts of fossil fuels encourages governments and consumers to adopt cleaner, sustainable alternatives. Solar energy storage benefits from renewable energy by ensuring a consistent power supply, storing excess solar energy for use during periods without sunlight, and addressing the intermittent nature of solar generation. For example, in December 2024, according to Eurostat, a Luxembourg-based government agency, renewable energy accounted for 24.5% of the energy consumed in the EU in 2023, up from 23% in 2022. Therefore, the increasing demand for renewable energy is driving the expansion 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.

Major companies operating in the solar energy storage market are Samsung Electronics Co. Ltd., 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., Zenobe Energy Ltd.

North America was the largest region in the solar energy storage market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the solar energy storage market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the solar energy storage market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, 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.

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