Solar Energy Storage Market Size, Share, Growth, Trends, and Global Industry Analysis: By Composition (Lead Acid, Lithium Ion, Flow Battery, and Others), By Capacity (≤50 kW, 51 to 250 kW, 251 to 500 kW, 501 to 1000 kW, 1001 to 2500 kW, 2501 to 5000 kW, 5001 to 10000 kW, and >10000 kW), By Installation (On-Grid and Off-Grid), By End-Use Industry (Residential, Commercial, and Utility-Scale), and Region Forecast 2020-2031

Solar Energy Storage Market size was valued at US$ 91,390.7 million in 2024 and is projected to reach US$ 255,189.1 million by 2031 at a CAGR of 15.8% from 2025-2031. Moreover, the U.S. Solar Energy Storage Market is projected to grow significantly, reaching an estimated value of US$ 79,619.0 Million by 2031.

The market is dedicated to technologies and solutions that store energy produced by solar power systems, typically from solar photovoltaic (PV) panels or concentrating solar power (CSP), for use at a later time. The market is primarily driven by the growing need for grid stability and energy reliability as solar adoption increases. Energy storage, especially lithium-ion batteries, enables solar to become a dependable and dispatchable power source by storing excess energy for later use, mitigating solar intermittency. This trend is further supported by the declining cost of battery technologies, improved energy density, and policy-driven investments in clean energy infrastructure. A major trend reshaping the market is the integration of artificial intelligence and advanced energy management systems, which optimize energy use, enhance operational efficiency, and enable participation in dynamic pricing markets.

Simultaneously, the market is unlocking new opportunities through decentralized, off-grid solar-plus-storage solutions, especially in remote and underserved areas. Innovations in modular batteries, digital inverters, and mobile-based financing are making energy access more equitable. However, the high upfront cost of storage systems remains a significant restraint, particularly for large-scale applications. Long payback periods, supply chain risks for critical minerals, and recycling challenges continue to limit adoption in cost-sensitive markets. Despite these barriers, the convergence of affordability, technology, and sustainability goals is driving strong momentum toward smarter, more reliable solar energy ecosystems worldwide, positioning storage as a critical enabler of the global energy transition.

Facts & Figures

• Need for Grid Stability and Energy Reliability: With the accelerating deployment of solar energy, the need to manage fluctuations in power generation has become critical. Solar generation is intermittent; it peaks during daylight and drops during cloudy weather or at night. Energy storage plays a vital role in mitigating these inconsistencies by storing excess energy and releasing it when needed, thereby enhancing grid reliability and enabling solar to function as a stable energy source. For instance, the U.S. added over 10 GW of battery storage capacity in 2023 alone, much of it paired with solar.
• Strong Government Incentives and Regulatory Support: Governments worldwide are offering tax credits, rebates, and subsidies for energy storage systems, especially when paired with solar installations. These policies not only make adoption more affordable but also stimulate private investment and accelerate energy transitions. For instance, according to The Guardian, Australia's 2025 federal budget introduced a 30% subsidy on household battery systems, triggering a 5x surge in installations within three weeks of rollout. Similarly, the U.S. Inflation Reduction Act continues to offer up to 30% federal tax credits for solar-plus-storage installations.
• Rising Demand for Decentralized & Off-Grid Solutions: In regions with unreliable or no grid access, solar energy paired with storage offers a powerful, clean alternative to diesel generators or traditional grid extension. These systems empower energy independence and rural electrification while also being highly scalable and modular. For instance, the World Bank’s 2024 “Energy for All” initiative aims to fund 25 million off-grid solar-plus-storage units by 2030, particularly in underserved parts of Africa and Southeast Asia. Pay-as-you-go models from companies like M-KOPA have already provided solar home systems to over 5 million users.
• Expanding Solar PV Installations Globally: The rise in global solar power generation creates a parallel demand for storage to harness and dispatch that energy efficiently. As utility-scale, commercial, and residential solar systems become mainstream, storage becomes a critical component for maximizing energy use and returns. For instance, in 2024, according to the IEA 2024 report, over 350 GW of solar PV capacity was added globally in 2023 alone, and most new utility-scale installations now include integrated storage solutions.

Key Developments

• In May 2025, Grenergy announced massive investments of €3.5billion to replicate its Oasis de Atacama hybrid model with 1.1GW solar and 3.8GWh BESS projects, including a €900million investment in Chile and Spain by 2027. Multiple BYD supply contracts support the deployment.
• In April 2025, Enel’s joint venture, Potential Energy, closed the acquisition of more than 1GW of wind and solar assets, including 430MW of late-stage battery storage projects from CVC DIF and Cbus Super. This expands Enel’s renewables footprint across stable markets and underscores its integrated clean energy strategy.
• In February 2025, India's national power giants ONGC NTPC Green acquired Ayana Renewable Power, holding 4.1 GW operational assets and a 1GW pipeline, for US$ 2.3 billion. This landmark transaction rapidly scales renewable capacity with integrated solar, storage, and RTC projects.

Solar Energy Storage Market Segmentation

Based on the composition

• Lead Acid
• Lithium Ion
• Flow Battery
• Others

The lithium-ion batteries hold the largest market share in the market. Their dominance is driven by high energy density, longer cycle life, declining costs, and compatibility with both residential and utility-scale solar systems. Lithium-ion storage is favored for its fast charging, space efficiency, and integration with smart energy management systems, making it the go-to choice for solar-plus-storage applications worldwide. Backed by massive investments in manufacturing and R&D, this segment continues to lead innovation and scalability. In contrast, flow batteries, while promising for long-duration storage, currently hold the smallest share due to higher costs, bulkier design, and limited commercial deployment.

Based on the capacity

• ≤50 kw,
• 51 to 250kw
• 251 to 500kw
• 501 to 1000kw
• 1001 to 2500kw
• 2501 to 5000kw
• 5001 to 10000kw,
• >100000

Based on capacity, the 1001 to 2500 kW segment currently holds the largest market share in the market. This range is ideal for commercial, industrial, and small utility-scale applications, offering a strong balance between power output, cost-effectiveness, and scalability. These systems are widely adopted for energy cost savings, peak shaving, and grid support services, especially in business parks, educational campuses, and renewable-rich industrial zones. Their popularity is also fueled by government programs promoting mid-scale clean energy systems. The capacities above 10,000 kW, though promising for large-scale grid storage, currently account for a smaller market share due to high costs and long project timelines.

Based on the installation

• On-Grid
• Off-Grid

Based on grid type, the on-grid segment holds the largest market share in the market. On-grid systems are directly connected to the public electricity grid, allowing users to draw power when solar production is low and to sell excess energy back through net metering. This setup is widely adopted in urban, industrial, and utility-scale projects due to its cost-effectiveness and seamless integration with existing energy infrastructure. On-grid installations benefit from government incentives, lower upfront costs, and minimal storage requirements. In contrast, the off-grid segment holds a smaller share, mostly serving remote or rural regions, though it is gaining momentum where centralized grid access is limited or unreliable.

Based on the application

• Residential
• Commercial
• Utility-Scale

In the global solar energy storage market, the utility-scale segment holds the largest market share. These large installations are crucial for grid stability, renewable integration, and energy arbitrage at scale. Utility-scale solar-plus-storage systems typically operate at megawatt capacities and support national or regional grids by storing excess solar energy during the day and discharging it during peak demand hours. Governments and power utilities are heavily investing in this segment to meet decarbonization targets and reduce fossil fuel dependence. While residential storage is growing rapidly, driven by blackout concerns and cost savings, and commercial applications support energy resilience for businesses, utility-scale remains the dominant contributor due to its broad impact and capacity.