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    Solar Energy and Battery Storage Market

    ID: MRFR/E&P/4410-HCR
    125 Pages
    Anshula Mandaokar
    September 2025

    Solar Energy and Battery Storage Market Research Report By Application (Residential, Commercial, Utility), By Battery Type (Lithium-Ion, Lead-Acid, Flow Battery, Nickel-Cadmium), By Technology (Solar Photovoltaic, Concentrated Solar Power, Solar Thermal), By End Use (Grid-tied, Off-grid, Hybrid) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

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    Solar Energy and Battery Storage Market Infographic
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    Solar Energy and Battery Storage Market Summary

    As per Market Research Future Analysis, the Global Solar Energy and Battery Storage Market was valued at 168.47 USD Billion in 2023 and is projected to reach 600.2 USD Billion by 2035, reflecting a CAGR of 11.17% from 2025 to 2035. The market is driven by increasing demand for renewable energy, technological advancements, and supportive government policies aimed at reducing greenhouse gas emissions.

    Key Market Trends & Highlights

    The Solar Energy and Battery Storage Market is witnessing significant momentum due to various factors.

    • Market size in 2024: 187.29 USD Billion; driven by residential (40.0 USD Billion), commercial (50.0 USD Billion), and utility (97.29 USD Billion) sectors.
    • Global renewable energy capacity reached 3,064 Gigawatts in 2020, with solar energy accounting for a substantial share.
    • Efficiency of solar panels improved from around 15% in the early 2000s to over 22% today.
    • North America leads the market with a valuation of 70.0 USD Billion in 2024.

    Market Size & Forecast

    2023 Market Size USD 168.47 Billion
    2024 Market Size USD 187.29 Billion
    2035 Market Size USD 600.2 Billion
    CAGR (2025-2035) 11.17%

    Major Players

    Key players include ABB, NextEra Energy, Brookfield Renewable Partners, Vivint Solar, LONGi Green Energy, Tesla, JinkoSolar, Sunrun, Enphase Energy, BYD, Trina Solar, Canadian Solar, First Solar, LG Energy Solution, and SMA Solar Technology.

    Solar Energy and Battery Storage Market Trends

    The Solar Energy and Battery Storage Market is witnessing significant trends driven by the growing demand for renewable energy sources and advancements in technology. One of the key market drivers is the increasing commitment from governments around the world to reduce carbon emissions, with many nations setting ambitious renewable energy targets. This push towards sustainability is fostering investments in solar energy and battery storage systems, leading to greater adoption among residential, commercial, and industrial sectors.

    Opportunities to be explored include the integration of solar energy systems with energy storage solutions, which enhances grid reliability and allows for better management of energy supply and demand.

    The declining costs of solar photovoltaic panels and battery technologies are also expanding access to solar energy, making it a viable option for more consumers and businesses.  In recent times, the trend towards decentralized energy generation is gaining momentum, where individuals and communities can harness solar power and store it for personal use, reducing dependence on traditional power grids. 

    Additionally, the rise of electric vehicles is creating synergies between solar energy and battery storage, leading to innovative solutions that enhance energy efficiency. Countries are also focusing on developing smart grids, which will further support the integration of renewable sources into the energy mix.

    The emphasis on energy storage is crucial, as it allows for the effective use of solar power, ensuring energy availability even during non-productive hours. Hence, the Solar Energy and Battery Storage Market is not only aligning with environmental goals but also driving technological advancements and economic growth.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    The transition towards renewable energy sources, particularly solar energy and battery storage, is poised to reshape global energy dynamics, fostering sustainability and energy independence.

    U.S. Department of Energy

    Solar Energy and Battery Storage Market Drivers

    Growing Demand for Renewable Energy

    The increasing global emphasis on renewable energy sources drives the Global Solar Energy and Battery Storage Market Industry. Governments worldwide are implementing policies and incentives to promote solar energy adoption, aiming to reduce greenhouse gas emissions. For instance, many countries are setting ambitious targets for renewable energy integration into their energy mix. This trend is reflected in the projected market size, which is expected to reach 187.3 USD Billion in 2024. The shift towards cleaner energy solutions appears to be a key factor in the market's expansion, as consumers and businesses alike seek sustainable alternatives.

    Market Segment Insights

    Solar Energy and Battery Storage Market Application Insights  

    The Solar Energy and Battery Storage Market showcases significant potential and versatility across various applications, primarily categorized into Residential, Commercial, and Utility sectors. In 2024, the total market value is poised at 187.29 USD Billion, a reflection of the growing adoption of solar technologies and battery storage systems across multiple usage areas. Delving into the specifics, the Residential segment alone is anticipated to generate a market value of 48.0 USD Billion in 2024, rising to 160.0 USD Billion by 2035.

    This growth trajectory emphasizes the increasing reliance of homeowners on renewable energy sources, driven by rising electricity costs and a collective push toward sustainability.

    Conversely, the Commercial segment is expected to command a market valuation of 35.0 USD Billion in 2024, which will reach approximately 115.0 USD Billion by 2035. This reflects a growing trend among businesses seeking energy independence and reduced operational costs while enhancing their environmental footprint. The embrace of solar energy within commercial settings is vital, as these establishments contribute significantly to energy consumption on a global scale.

    The Utility segment, dominating the market with a valuation of 104.29 USD Billion in 2024 and projected to increase to 325.2 USD Billion by 2035, demonstrates the highest demand for large-scale solar power installations and energy storage solutions. The majority holding of this sector indicates the strong commitment from energy providers to transition towards renewable energy sources and meet regulatory sustainability mandates. This focus not only supports grid stability but also addresses the increasing need for clean energy to cater to growing electricity demands.

    The market growth in these applications is fueled by advancements in technology, declining costs of solar panels and battery systems, and supportive government policies geared towards green energy initiatives. The segmentation in the Solar Energy and Battery Storage Market highlights the thrust towards renewable energy adoption on both micro and macro levels, showcasing opportunities for businesses and households to capitalize on enhanced energy efficiency and cost savings. These insights into the application-based market segmentation underscore its critical role in shaping a sustainable energy future globally.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Solar Energy and Battery Storage Market Battery Type Insights  

    The Solar Energy and Battery Storage Market is experiencing significant growth, particularly in the Battery Type segment, which plays a crucial role in optimizing solar energy utilization. By 2024, the market is projected to be valued at 187.29 billion USD, underscoring the increasing importance of efficient battery solutions. Within this segment, Lithium-Ion batteries have gained prominence due to their high energy density and cost-effectiveness, making them the preferred choice for various applications. Lead-Acid batteries, known for their reliability and affordability, remain a substantial player, especially in traditional energy storage solutions.

    Flow Batteries are gaining traction, thanks to their scalability and potential for long-duration energy storage, which aligns well with the intermittent nature of solar energy generation. Meanwhile, Nickel-Cadmium batteries, although less common now, offer advantages in specific applications where performance in extreme temperatures is necessary. Overall, the Solar Energy and Battery Storage Market data indicates that these battery types are essential in driving the industry's growth, addressing challenges related to energy storage, and contributing to the transition towards renewable energy sources.

    Global trends show that investments in sustainable energy and battery technology are on the rise, creating favorable opportunities for innovation and expansion.

    Solar Energy and Battery Storage Market Technology Insights  

    The Solar Energy and Battery Storage Market is poised for significant growth, driven by advancements in technology and increasing emphasis on renewable energy sources. By 2024, the market is expected to reach a valuation of 187.29 billion USD, with various technologies playing a pivotal role. The Solar Photovoltaic segment stands out due to its widespread adoption and efficiency in energy conversion, making it a cornerstone in the market. Concentrated Solar Power technology is also gaining traction, as it allows for energy generation during non-sunny hours through thermal storage.

    Solar Thermal systems continue to be essential for large-scale heating applications, enhancing energy efficiency in residential and industrial sectors. The anticipated evolution in these technologies aligns with rising global energy demands and governmental support for clean energy initiatives. The market is set to capitalize on these trends, presenting numerous opportunities for innovation, though challenges such as integration with existing infrastructure and initial investment costs remain. Overall, the Solar Energy and Battery Storage Market segmentation emphasizes a robust growth trajectory, with each technology segment contributing uniquely to its advancement and sustainability.

    Solar Energy and Battery Storage Market End Use Insights  

    The Solar Energy and Battery Storage Market is experiencing substantial growth, with a market valuation of 187.29 USD Billion in 2024, reflecting a strong demand across various End Use applications. The segmentation within this market includes Grid-tied, Off-grid, and Hybrid systems, each contributing uniquely to the overall market dynamics. Grid-tied systems are pivotal as they connect directly to the electricity grid, enabling users to sell excess energy back to the grid, which enhances their economic viability. Off-grid systems cater primarily to remote areas lacking grid access, and they play a significant role in enhancing energy accessibility, particularly in developing regions.

    Hybrid systems integrate both grid-connected and off-grid capabilities, offering flexibility and reliability, which is crucial for consumers looking for sustainable energy solutions. The sustained increase in renewable energy adoption and the need for energy independence are key growth drivers, while challenges like high initial investment costs and regulatory barriers pose hurdles. The Solar Energy and Battery Storage Market revenue is projected to continue its growth trajectory, supported by technological advancements and favorable government policies promoting clean energy usage.

    Get more detailed insights about Solar Energy and Battery Storage Market Research Report – Forecast to 2035

    Regional Insights

    The Regional segment of the Solar Energy and Battery Storage Market shows robust growth across various regions, reflecting a shift towards sustainable energy solutions. By 2024, North America is expected to reach a value of 45.0 USD Billion, positioning it as a key player, with a projected increase to 170.0 USD Billion by 2035, highlighting its significant investment in renewable technologies. Europe closely follows, valued at 40.0 USD Billion in 2024 and anticipated to grow to 130.0 USD Billion by 2035, fueled by stringent regulations and a strong commitment to reducing carbon footprints.

    The Asia Pacific region dominates the market with a valuation of 75.0 USD Billion in 2024, expected to surge to 250.0 USD Billion by 2035, driven by rapid industrialization and increasing energy demands in countries like China and India. South America, while smaller, is projected to grow from 12.0 USD Billion in 2024 to 35.0 USD Billion in 2035, capitalizing on its vast solar resources. The Middle East and Africa region, despite its lower valuation at 15.29 USD Billion in 2024, is showing potential due to rising investments in renewable projects.

    Overall, the Solar Energy and Battery Storage Market segmentation reveals that North America and Asia Pacific are major contributors, reflecting their strategic initiatives and technological advancements in the renewable energy sector.

    Solar Energy and Battery Storage Market Regional Insights

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Key Players and Competitive Insights

    The Solar Energy and Battery Storage Market is witnessing significant advancements and competitive dynamics driven by the growing demand for renewable energy solutions. With an increasing focus on sustainability and the transition to green energy, various players are striving to enhance their product offerings and technological capabilities. The competitive landscape is characterized by innovation, strategic partnerships, and investments in research and development. Companies are leveraging government incentives and rising consumer awareness to expand their market reach and improve their operational efficiencies in solar energy and battery storage systems, presenting a dynamic backdrop for competition.

    The integration of battery storage with solar energy solutions is becoming a crucial element in this sector, allowing for optimized energy usage and providing consumers with reliable energy options.

    Sungrow has established itself as a strong contender in the Solar Energy and Battery Storage Market, noted for its innovative inverter technology and energy storage solutions. The company has a significant global presence, marking its footprint with both utility-scale and residential-level deployments. Sungrow’s strengths lie in its commitment to research and development, which has enabled the company to maintain a competitive edge through technological advancements in inverter efficiency and energy management. Furthermore, the brand emphasizes sustainability and customer-centric approaches, positioning itself as a reputable provider in the renewable energy sector.

    Its strategic alliances and collaborations with various partners across the globe further enhance its industry stature, ensuring that it meets the growing demands for energy solutions in various markets.

    SunPower, a prominent player in the Solar Energy and Battery Storage Market, is recognized for its high-efficiency solar panels and energy storage systems, serving both residential and commercial customers. The company’s strengths are amplified by its focus on quality and performance, leading to a solid reputation in the field of solar technology. SunPower has strategically expanded its market presence through various mergers and acquisitions that enhance its technological capabilities and distribution networks globally. The broad range of key products and services includes solar panels, battery storage solutions, and sophisticated energy management systems designed to optimize energy consumption.

    The firm’s dedication to innovation is exemplified by its continuous investments in advanced solar technology and strong customer service initiatives, which position it favorably in the competitive landscape of solar energy and battery storage solutions across different regions.

    Key Companies in the Solar Energy and Battery Storage Market market include

    Industry Developments

    In recent months, the Solar Energy and Battery Storage Market has witnessed significant developments. In September 2023, First Solar announced plans to expand its manufacturing capacity in the United States, emphasizing its commitment to domestic production of solar panels. This expansion aligns with the increasing domestic energy requirements and government incentives. Simultaneously, in October 2023, Tesla launched upgraded versions of its solar products and energy storage solutions, enhancing efficiency and integrating with the electric vehicle ecosystem, which bolsters its position in the competitive market.

    Furthermore, in August 2023, Enphase Energy entered into a partnership with BYD to promote combined solar and energy storage solutions, aiming to increase market penetration in renewable energy sectors.

    In terms of mergers and acquisitions, Brookfield Renewable Partners completed the acquisition of a large-scale solar project in California from a well-known solar developer in July 2023, reflecting the ongoing trend of consolidation in the sector. Furthermore, Trina Solar and JinkoSolar continue to report increasing revenues, driven by rising demands for solar installations globally. With these advancements, the market is positioned for notable growth, with ongoing investments shaping the future landscape of renewable energy technologies.

    Future Outlook

    Solar Energy and Battery Storage Market Future Outlook

    The Solar Energy and Battery Storage Market is projected to grow at an 11.17% CAGR from 2024 to 2035, driven by technological advancements, regulatory support, and increasing energy demand.

    New opportunities lie in:

    • Develop integrated solar-plus-storage solutions for residential markets.
    • Invest in advanced battery technologies to enhance energy density and lifespan.
    • Expand into emerging markets with tailored financing options for solar installations.

    By 2035, the market is expected to achieve substantial growth, positioning itself as a cornerstone of global energy systems.

    Report Scope

    Report Attribute/Metric

    Details

    Market Size 2023

    168.47 (USD Billion)

    Market Size 2024

    187.29 (USD Billion)

    Market Size 2035

    600.2 (USD Billion)

    Compound Annual Growth Rate (CAGR)

    11.17% (2025 - 2035)

    Report Coverage

    Revenue Forecast, Competitive Landscape, Growth Factors, and Trends

    Base Year

    2024

    Market Forecast Period

    2025 - 2035

    Historical Data

    2019 - 2024

    Market Forecast Units

    USD Billion

    Key Companies Profiled

    Sungrow, SunPower, Nextera Energy, Brookfield Renewable Partners, Trina Solar, Enphase Energy, BYD, SolarEdge Technologies, Tesla, First Solar, JinkoSolar, Vivint Solar, LG Energy Solution, NIO, Canadian Solar

    Segments Covered

    Application, Battery Type, Technology, End Use, Regional

    Key Market Opportunities

    Rising demand for renewable energy, Government incentives and subsidies, Technological advancements in storage, Increasing electric vehicle adoption, Expansion in emerging markets

    Key Market Dynamics

    government regulations and incentives, technological advancements, increasing energy demand, decreasing battery prices, environmental sustainability focus

    Countries Covered

    North America, Europe, APAC, South America, MEA

    Market Highlights

    Author
    Anshula Mandaokar
    Team Lead - Research

    Anshula Mandaokar holds an academic degree in Chemical Engineering and has been contributing to the field for more than 5 years. She has expertise in Market Research and Business Consulting and serves as a Team Lead for a reputed Market Research firm under the Chemicals and Materials domain spectrum. She has worked on multiple projects, generating explicit results in a quick turnaround time. Her understanding of data interpretation justifies her role as a leader.

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    FAQs

    What is the expected market size of the Solar Energy and Battery Storage Market in 2024?

    The market is expected to be valued at 187.29 billion USD in 2024.

    What is the projected market size for the Solar Energy and Battery Storage Market in 2035?

    The market is projected to reach a value of 600.2 billion USD by 2035.

    What is the expected compound annual growth rate (CAGR) for the Solar Energy and Battery Storage Market from 2025 to 2035?

    The expected CAGR for the market during this period is 11.17 percent.

    Which region is expected to have the largest market share in the Solar Energy and Battery Storage Market in 2024?

    North America is expected to have the largest market share valued at 45.0 billion USD in 2024.

    What is the projected market size for the utility application of Solar Energy and Battery Storage in 2035?

    The utility application is projected to be valued at 325.2 billion USD by 2035.

    What are the top key players in the Solar Energy and Battery Storage Market?

    Some major players include Sungrow, SunPower, Nextera Energy, Trina Solar, and Enphase Energy.

    What is the expected market size for the commercial segment in 2035?

    The commercial segment is expected to reach a market size of 115.0 billion USD in 2035.

    Which region is anticipated to experience the highest market growth rate from 2025 to 2035?

    Asia Pacific is anticipated to witness the highest growth rate, projected to be valued at 250.0 billion USD by 2035.

    What is the valuation for the residential application of Solar Energy and Battery Storage Market in 2024?

    The residential application is valued at 48.0 billion USD in 2024.

    How much is the market for the Middle East and Africa estimated to grow by 2035?

    The market for the Middle East and Africa is estimated to be valued at 15.2 billion USD by 2035.

    Solar Energy and Battery Storage Market Research Report – Forecast to 2035 Infographic
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