Solar Energy Storage Market – By Composition, By Capacity, By Installation, By Application, Analysis, Share, Growth Forecast, 2025 - 2034

Solar Energy Storage Market Size

The global solar energy storage market was valued at USD 93.4 billion in 2024. The market is expected to reach USD 378.5 billion in 2034, at a CAGR of 17.8%. Government incentives for solar-plus-storage installations and net metering policies enhancing storage demand along with rising environmental concerns will augment the business landscape.
 

Ongoing advancements and upgrades aimed at enhancing cost-effectiveness in line with initiatives to adopt efficient energy conservation strategies will positively shape the industry outlook. Innovations in lithium-ion battery chemistry in tandem with increasing mandates for energy storage deployment in renewable projects will amplify the business scenario.
 

For instance, in the first half of 2024, the U.S. integrated approximately 14.1 GWh of energy storage capacity to its electric grid. This increase aims at developing new energy storage technologies that improve grid reliability, manage peak load demand, and support the shift toward a decarbonized electricity system.
 

Rising concerns over grid instability and power outages are accelerating the deployment of energy storage systems across various sectors. Incorporating advanced technologies such as real-time monitoring and maintenance capabilities as well as digitization and IoT synthesis, will heighten the product demand.
 

The implementation of stringent environmental regulations along with the growing demand for energy efficiency will enhance the industry potential. Declining costs of inverters with built-in storage capabilities and growing private equity investments in the energy storage sector coupled with rising consumer awareness about energy independence will stimulate the business dynamics.
 

For instance, by 2033, U.S. solar capacity is projected to reach 668 GW, enough to power all homes east of the Mississippi River. This growth will slash 459 million metric tons of CO2 a year, shaving almost one-third of the electricity sector's 2021 emissions. In addition, technological innovations and infrastructure improvement will continue to propel solar demand.
 

Growing demand for peak load management solutions along with the need for reliable power in disaster-prone regions will escalate the business momentum. Reduction of greenhouse gas emissions and increasing focus on circular economy models for battery recycling will fortify the industry penetration.
 

Solar Energy Storage Market Trends

The solar energy storage industry is expected to witness tremendous growth, led by growing environmental awareness and strict emission reduction policies. The growing focus on energy conservation programs will drive market growth. Furthermore, all ongoing efforts directed towards improving cost effectiveness will continue to reshape the industry dynamics.
 

The rising demand for grid stability and reliable power supply coupled with supportive government policies is driving the adoption of lithium-ion solar energy storage systems. Furthermore, the world’s transition to renewable energy sources and the increasing demand for autonomous power systems will enhance the business vision.
 

For instance, by 2026, U.S. manufacturing capacity for modules, cells, wafers, ingots, and inverters is set to expand more than 17-fold. This expansion, fueled by newly revealed factories, markedly reinforces local supply chains. Furthermore, the additional production capacity will be enough to address most of solar project requirements throughout the country, enabling industry growth and energy independence.
 

Innovations in thermal energy storage and AI-driven energy management systems in association with Feed-in tariff programs for stored solar power will bolster the industry growth. The heightened emphasis on storage lifecycle sustainability and the rising demand for net-zero power solutions in commercial buildings will drive industry growth. Additionally, rising frequency of extreme weather events is boosting the product adoption.
 

Utility-scale battery energy storage systems are being deployed along with large solar farms to provide grid balancing, frequency regulation, and peak shaving services, strengthening energy security. Moreover, expansion of demand-side management programs and energy efficiency capabilities will improve the business environment.
 

For instance, in August 2023, the U.S. expanded its energy storage manufacturing capacity by introducing 14 new projects which has a combined capacity of 65 GWh. This growth indicated an innovative storage facility to facilitate integration of renewable energy. Moreover, these facilities will improve the resilience of the supply chain and address the increased demand for grid stability and electrification.
 

Solar Energy Storage Market Analysis

• The market was estimated at USD 50.6, 65.9 and 93.4 billion in 2022, 2023 and 2024 respectively. Based on power rating, the market is segmented into ≤ 50 kW, 51 to 250 kW, 251 to 500 kW, 501 to 1,000 kW, 1001 to 2500 kW, 2,501 to 5,000 kW, 5,001 to 10,000 kW, and > 10,000 kW. The ≤ 50 kW market is projected to grow at a CAGR of over 16.5% by 2034. The capability of solar energy storage solutions to deliver high power output, extended operational performance, and efficient load management will drive business momentum.
   
• The 51 to 250 kW solar energy storage market is projected to reach over USD 35 billion by 2034. Growing demand from commercial buildings, small businesses, and community solar projects will drive the product development. Additionally, firms are also deploying AI-based energy management systems in order to maximize battery use, which subsequently will boost the demand for these units.
   
• For instance, in January 2025, one of the U.S.'s most influential solar industry associations sketched out a bold goal for expediting energy storage deployment by 2030. The plan is meant to maximize the integration of renewable energy and address increased demand for resilient power solutions.
   
• The 251 to 500 kW solar energy storage market has a market share of over 14% in 2024. Businesses in energy-intensive industries including manufacturing and warehousing are adopting solar storage to ensure power reliability and mitigate rising energy costs.
   
• The 501 to 1,000 kW solar energy storage market is projected to reach over USD 14 billion by 2024. Energy storage solutions in this market are becoming increasingly modular, enabling businesses to adapt and scale their capacity in line with demand. Additionally, policy support in the form of investment tax credits and subsidies will drive the business development.
   
• For instance, global energy investment reached over USD 3 trillion in 2024, indicating a significant industry milestone. Clean energy technologies and infrastructure represented USD 2 trillion, fueled by quick developments in renewables, grid modernization, and energy efficiency solutions.
   
• The 1001 to 2500 kW solar energy storage market is projected to grow at a CAGR of over 15% by 2034. These units are being utilized in greater measures in commercial and industrial operations such as logistics centers, hospitals, and other high energy-consuming enterprises.
   
• The 2,501 to 5,000 kW solar energy storage market is projected to reach over USD 70 billion by 2034. Increasing storage mandates for grid decarbonization and international climate agreements encouraging storage investments in line with the growing number of utilities offering storage-as-a-service programs will fuel the demand of these units.
   
• For instance, the International Energy Agency predicts 3% per annum growth in global electricity consumption up to 2030, spurred by industrialization and digitalization. Increasing grid instability is prompting the use of energy storage technologies to improve reliability and provide continuous power supply across commercial businesses.
   
• The 5,001 to 10,000 kW solar energy storage market has a market share of over 8.5% in 2024. Expansion of solar storage in heavy industries to reduce operational costs in conjunction with increasing frequency of urban blackouts will escalate the business scenario.
   
• The > 10,000 kW solar energy storage industry is projected to reach over USD 15 billion by 2024. Storage solutions within this size incorporate long-duration storage technologies. In addition, the units come equipped with improved safety features such as fire suppression and thermal control, thus escalating industry proliferation.
   
• For instance, in 2021, the USD 4.5 billion Smart Renewables and Electrification Pathways Program was launched to support energy storage, grid modernization, and renewable energy deployment throughout Canada. This program aims at improving affordability, grid sustainability, and reliability in the country.
   

• Based on application, the industry is segmented into residential, commercial & industrial and utility. The residential solar energy storage market has a market share of 66% in 2024. Rising property values associated with solar-plus-storage installations coupled with the growing number of homeowners prioritizing energy self-sufficiency will elevate the business landscape.
   
• The commercial & industrial market is projected to reach over 45 billion by 2034. The rapid expansion of electric vehicles in line with the adoption of stationary solar solutions will amplify the business scenario. Moreover, increasing penetration of net-zero energy buildings will bolster the industry growth.
   
• For instance, Europe launched the Net-Zero Industry Act within the Green Deal Industrial Plan to ramp up clean tech manufacturing and cover at least 40% of yearly deployment demand by 2030. The plan seeks to attract investment, improve market access, and increase industrial competitiveness.
   
• The utility solar energy storage market will project at a CAGR of over 10.5% by 2034. These systems have drawn significant investment due to their flexibility, which supports deployment across broad tandem of regions. Increasing electricity consumption in isolated regions and the modernization of current power grids will drive the industry potential.
   

• U.S. solar energy storage market was valued at USD 14.8, 17.4, 35.9 billion in 2022, 2023 and 2024 respectively. The rise in energy costs, growing concerns over availability together with the environmental impacts will escalate the widespread adoption of energy-efficient technologies in the country.
   
• The North America solar energy storage market will witness a CAGR of over 13% in 2034. The sector is inspired by increasing energy demand caused by urbanization and expansion in population, resulting from continuous technological innovations. Furthermore, regulatory requirements and harmonization policies aimed at energy efficiency will improve the business dynamics.
   
• For instance, in Canada's budget 2023, SREPs were given a USD 2.9 billion recapitalization to propel clean electricity infrastructure, such as renewable energy, energy storage, and modernizing the grid. The fund is aimed at increasing grid resilience and ramping up clean energy deployment.
   
• The Europe solar energy storage market was valued over USD 35 billion in 2024. European Green Deal schemes, such as the Next Generation EU and recovery plans at the national level, are likely to propel the use of these energy solutions. Furthermore, more government-sponsored electrification initiatives will complement the industry landscape.
   
• The Asia Pacific solar energy storage market is set to reach over USD 41 billion by 2034. Declining manufacturing and installation costs in association with growing consumer demand for sustainable storage solutions are set to drive market expansion. Additionally, rising technological advancements will sway the business outlook.
   
• For instance, by the end of 2024, China completed and grid-connected a 100MW thermal solar and energy storage system. As part of a 1GW integrated solar and storage project in Turfan, it incorporated 900MW of conventional solar PV with advanced thermal storage, backed by a USD 840 million investment.
   
• The Middle East & Africa solar energy storage market has a market share of over 2.5% in 2024. Rising energy prices, growing concerns about resource availability and environmental impact have heightened interest in energy-efficient technologies across the region.
   
• For instance, in September 2024, the African Development Bank Group sanctioned a USD 6.5 million concessional financing package through the Sustainable Energy Fund for Africa to expedite Burkina Faso’s Dédougou solar energy project under the Desert-to-Power initiative, aimed at enhancing energy access and security.
   
• The Latin America solar energy storage market is poised to grow at a CAGR of over 13.5% in 2034. Continuous technological enhancement, including higher energy density, extended cycle life, and improved safety features will enhance industry potential. Additionally, the integration of solar energy storage systems with smart grid technologies will accelerate the business growth.
   

Solar Energy Storage Market Share

• The top 5 players, including ABB, Siemens Energy, Schneider Electric, Eaton and LG Electronics together hold a share of about 40% in the market. Companies are focusing on scaling production capabilities to achieve cost efficiencies and streamline supply chains, which in turn will enhance the industry penetration.
   
• Schneider Electric signed a Memorandum of Understanding to advance energy management and sustainability solutions. For instance, in March 2024, Hy Stor Energy and Schneider Electric formalized a Memorandum of Understanding to advance the Mississippi Clean Hydrogen Hub and accelerate its broader U.S. development strategy.
   

Solar Energy Storage Market Companies

• ABB has reported USD 32.9 billion in revenue in 2024. The company operates in electrification, motion, process automation and robotics and discrete automation segments. Among the segments, its electrification segmented generated USD 15.4 billion in 2024, a 9.2% increase from last year.
   
• Siemens Energy reported a revenue of USD 32.6 billion in 2024, driven by strategic initiatives and strong partnerships. The company’s gross profit saw a substantial 498% increase, reaching USD 4.7 billion, a significant rise from USD 787 million in the previous year.
   
• Eaton reported net sales of USD 6.2 billion in 2024, reflecting a 7% year-over-year increase. This growth was driven by strong demand across key segments, strategic investments, and operational efficiencies. Moreover, the company’s focus on innovation and sustainability continues to strengthen its market position.
   

Major players operating in the solar energy storage industry are:

• ABB
• BAE Batteries
• BYD Company
• Eaton
• ENERSYS
• Honeywell International
• Huawei
• Innova Renewables
• Leclanché SA
• LG Electronics
• Maxwell Technologies
• NextEra Energy
• Primus Power
• Saft
• SAMSUNG
• Schneider Electric
• Siemens Energy
• Sol Systems
• Tesla
• Toshiba Corporation
   

Solar Energy Storage Industry News

• In November 2024, Schneider Electric unveiled its new off grid portable solar power station, designed to provide reliable power in both outdoor adventures and disaster-stricken regions. This innovative solution offers a sustainable, off-grid power source that can support a variety of devices, making it ideal for camping trips or emergency use in areas affected by hurricanes.
   
• In September 2024, Huawei developed an advanced solar storage microgrid installation in Saudi Arabia's Red Sea New City, generating more than 1 TWh of renewable energy within its first operational year. The infrastructure encompasses 400 MW of photovoltaic arrays combined with 1.3 GWh of storage solutions, integrated across a 100 km grid system.
   
• In September 2024, Eaton announced a collaboration with Tesla to enhance home energy storage and solar adoption in North America. The partnership integrated Tesla’s Powerwall with Eaton’s AbleEdge smart breakers, simplifying intelligent load management for homeowners and installers. This innovation optimized energy consumption and extended backup power during grid outages, advancing energy resilience and sustainability.
   
• In June 2024, ABB launched the ReliaHome Smart Panel, an advanced home energy management system for residential applications. Developed with software partner Lumin, the solution optimized energy use, enabled circuit scheduling, and provided real-time control. Its app-based management allowed homeowners to monitor and manage energy consumption, enhancing efficiency and cost savings.
   

The solar energy storage market research report includes in-depth coverage of the industry with estimates & forecast in terms of volume (MW), & revenue (USD Million) from 2021 to 2034, for the following segments:

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Market, By Composition

• Lead Acid
• Lithium Ion

Market, By Capacity

• ≤ 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
• > 10,000 kW

Market, By Installation

• On-Grid
• Off-Grid

Market, By Application

• Residential
• Commercial & Industrial
• Utility

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • Italy
  • Spain
  • UK
  • Switzerland
  • Austria
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
• Middle East
  • Saudi Arabia
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina