Date: June 26, 2025
Location: Shanghai, China
As global energy systems shift toward decentralization and decarbonization, the photovoltaic (PV) energy storage market is experiencing rapid expansion. According to BloombergNEF, the cumulative global installed capacity of PV-coupled energy storage surpassed 85 GW/170 GWh by the end of 2024, marking a 43% year-on-year increase. The market momentum is driven by falling technology costs, rising electricity prices, and growing policy support for clean energy adoption.
The Asia-Pacific region leads the global market, accounting for over 55% of total installations, followed by Europe and North America. China remains the largest market, with more than 28 GW of new residential and industrial solar-plus-storage systems installed in 2024 alone. In Europe, Germany deployed 1.3 million residential battery storage systems by December 2024, a tenfold increase since 2018. In the United States, the Inflation Reduction Act has catalyzed over $120 billion in clean energy investments, with utility-scale solar-plus-storage projects making up a growing share of grid-connected assets.
The Middle East is emerging as a high-growth region, with Saudi Arabia, the United Arab Emirates, and Oman launching large-scale solar tenders that include integrated battery energy storage systems (BESS). In 2024, Saudi Arabia announced a 5 GW hybrid solar-plus-storage initiative under the National Renewable Energy Program (NREP), targeting off-grid and desert-area electrification.
Technology improvements are central to this trend. Lithium iron phosphate (LFP) batteries now dominate the market due to higher thermal stability and cycle life exceeding 6,000 full charge-discharge cycles, with costs declining to under $100/kWh at the cell level. Simultaneously, hybrid inverters, bidirectional charging systems, and AI-powered energy management platforms are enabling smarter load balancing and demand forecasting.
The commercial and industrial (C&I) sector is also seeing robust growth. A recent report by Wood Mackenzie projects the global C&I PV-plus-storage capacity to grow at a compound annual growth rate (CAGR) of 27% between 2024 and 2030. Key adoption drivers include peak demand charges, carbon emission limits, and business continuity planning.
In response, major manufacturers are scaling up investments. BYD, CATL, and Sungrow have each announced new gigafactories focused on energy storage systems. Total annual battery production capacity worldwide is projected to exceed 3,000 GWh by 2026, ensuring supply for grid-scale, commercial, and residential applications.
Policy frameworks are aligning rapidly. Over 80 countries now offer incentives, feed-in tariffs, or net-metering policies for solar-plus-storage systems. In 2025, the European Union is set to introduce a new directive supporting “Prosumer Energy Communities” enabling citizens and SMEs to trade solar energy through decentralized storage infrastructure.
As global electricity demand continues to grow — projected to rise by 25% by 2030 according to the International Energy Agency — photovoltaic energy storage systems are poised to play a foundational role in delivering resilient, clean, and affordable power worldwide.