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Date June 14, 2022

Dr. Fang-Wei Yuan, senior analyst of InfoLink Consulting, was invited to join the solar-plus-storage seminar held by China Photovoltaic Industry Association (CPIA) on June 9 to share insights on the future of global solar-plus-storage market.
 

Global market.

Energy storage is the solution to the huge amount of renewable energies that strike electricity grids. Solar energy, growing fast and steadily, has seen installed capacity reach beyond 150 GW in 2021, potentially exceeding 200 GW the end of by 2022 in the optimistic scenario. Against this backdrop, the application of solar-plus-storage comes into the limelight.

Dr. Yuan started with a quick recap on global energy storage market, which reached 10 GWh in 2020, 20 GWh in 2021, and expectedly beyond 40 GWh this year, indicating its rapid growth. As for solar-plus-storage, the market has 3 GWh, 8 GWh, and 16 GWh of capacity each year during 2020 and 2022, with its share in the energy storage market increasing from 30% to 40%. “Such increase suggests the transition of ESS from the grid side to the generation side,” said Yuan.
 

Energy storage and solar-plus-storage

Countries around the world put forward more comprehensive energy storage policies to address the inelastic issue of renewables. In China, more than 20 provinces have introduced solar-plus-storage policies. In most of these provinces, new PV power stations are required to have at least 10% of ESS integration and that the ESS must have at least two hours of storage duration. Some provincial authorities pose stricter regulations, stepping up scrutiny from encouraging to mandating. As the biggest PV market, China is expected to see the fastest growth and largest market share of solar-plus-storage. Dr. Yuan forecast the solar-plus-storage market to expand from 1 GWh in 2020 to 5 GWh this year, and PV penetration in the FTM energy storage market will rise to 40%.

The U.S. secured nearly 50% of share of global energy storage market in 2021. Having a rather matured market environment and relevant policy frameworks, the nation will sustain its leading position as the world’s largest energy storage market and see steady development of solar-plus-storage in recent years.

China and the U.S. aside, Europe accelerates energy transition in response to knock-on effects of Russia-Ukraine conflict. As progresses vary among all member countries, the bloc will see FTM and BTM markets growing at similar paces. China and the U.S. focuses on the FTM market, together amassing 75% of share in the global energy storage market, and 85% if including Europe.

china solar plus storage market size


BTM residential solar-plus-storage market

Dr. Yuan pointed out Germany, Japan, the U.S., and Australia as the better developed BTM residential solar-plus-storage markets. In 2021, the four saw 10 millions of residential PV installations and 1.5 millions of ESS installations, translating to 13.7% of ESS/PV installation ratio. The four will see residential ESS market grow faster, with 18 millions of PV installations, 5 millions of ESS installations, and at least 25% of ESS/PV ratio by 2025.  

Residential ESS markets of other countries, such as Italy, the U.K., and Switzerland, are seeing headways as well, with new business models and green economic transforming traditional mode of electricity consumption.

residential solar plus storage installed capacity

Conclusion

The energy storage market is growing as fast as the world has ever seen, with market size possibly exceeding 40 GWh, and that of solar-plus-storage reaching beyond 16 GWh this year. China and the U.S. will become the largest FTM solar-plus-storage markets. China saw the most rapid increases, thanks to the introduction of policies and it being the world’s biggest PV market.

As for BTM residential markets, Germany, Japan, the U.S., and Australia will jointly achieve 18 million PV installations and 5 million of ESS installations by 2025. Meantime, other countries work actively to catch up.

Increasing integration of ESS with renewables underlines the importance of energy management and energy effectiveness. This makes business modules and smart energy management systems another decisive segment for companies across the industrial chain.

For more information, video recording of the presentation, and a sample of the 2Q22 Solar-plus-storage Global Market Report, write to us at service@infolink-group.com
 

Speaker

Dr. Yuan Fang-wei Infolink
Dr. Yuan Fang-wei
Senior ESS analyst

Dr. Yuan Fang-wei is a senior analyst with more than six years of experience in R&D in lithium-ion battery and related materials. With expertise in battery storage development, materials, and market forecasting, Dr. Yuan provides comprehensive data and insights of energy storage. Prior to joining InfoLink, Dr. Yuan has worked in China for three years. He holds a doctorate in Chemical Engineering from the National Tsing Hua University.