Stationary energy storage technologies are seen growing on a global scale, with the introduction of new sustainability targets and investments from many of the major economies, including Germany, the UK, and India. IDTechEx's latest report, "Batteries for Stationary Energy Storage 2025-2035: Markets, Forecasts, Players, and Technologies", deep dives into what's happening in different regions and how the industry can expect to change over the next decade.
Germany's strong growth potential for BESS
Germany has one of the strongest battery energy storage systems (BESS) potential worldwide, with an already large uptake of residential battery storage, meaning market growth is set to succeed within the next decade. IDTechEx names the tax break scheme for solar PV arrays under 30kW as one of the main drivers for residential battery storage systems. Long-term BESS growth in Germany is also expected to be fuelled by a reduction in demand for coal, lignite, and nuclear power plants.
11.7 million homes in Germany were deemed suitable for rooftop solar power installations in 2021, along with a doubling in demand for them by consumers compared to the year before. Over the next decade, IDTechEx reports large growth in these installations to match this demand, with early signs of this already starting to occur. IDTechEx estimates that Germany had installed ~550,000 residential battery storage systems in 2023.
Tax cuts for residential BESS in the UK
The UK government laid out plans to make residential installations of BESS exempt from VAT last year, which took effect from February 2024 and is expected to remain this way until 2027. This tax removal means that the upfront costs of BESS are lowered, which may incentivize consumers to purchase the technologies. The government has also claimed to want to invest in and grow the renewable energy market and has stated that grants and low-interest loans may be available to encourage investments in solar panels, batteries, and insulation to reduce the reliance on carbon-producing means of heating.
The growing global interest in more sustainable approaches to energy will continue to act as incentives to push demand for renewable energy sources and will hopefully encourage more targets and regulations to be put in place, and the resultant growth, as seen in both Germany and the UK.
Goals that need growth and India's renewable energy targets
India has a goal to deploy 500GW of renewable energy storage by 2030, alongside recently announced financial subsidies for 4GWh of BESS. Their funding would suggest that the economy is ready to welcome massive growth in the battery storage market; however, in 2023, only 120MWh of BESS was deployed. Uncertainties around their domestic Li-ion supply chain also still exist due to the lack of the commissioning for Li-ion gigafactories so far.
IDTechEx suggests that the implementation of stronger regulations and policies will be necessary to incentivize growth within the renewable energy sector and to reach their 2030 target. Their report states that grid instability could be a future side effect of not enough quickly growing grid-scale battery installations, alongside the lack of electricity market security for investors due to a current lack of regulation. Reports from the International Conference on Stationary Energy Storage India last year highlighted that 238GWh of BESS would be necessary to support a capacity of 500GW of non-fossil energy by 2032.
Solar Energy Corp. of India Ltd installed a BESS with 40MW/120MWh capacity in 2024, which was a significant development for India, as the year before this, only approximately 40MWh of BESS collectively was installed. There are also plans for a standalone utility-scale BESS with a 20MW/40MWh capacity to become active in the next year or two, though much more development may be needed for the country to stay on track with respect to its targets.
For more information on these regions and other economies, including Australia, Japan, Italy, and the US, see IDTechEx's report, "Batteries for Stationary Energy Storage 2025-2035: Markets, Forecasts, Players, and Technologies". Downloadable sample pages are available for this report.
For the full portfolio of energy storage and batteries market research available from IDTechEx, please visit www.IDTechEx.com/Research/ES.
About IDTechEx
IDTechEx provides trusted independent research on emerging technologies and their markets. Since 1999, we have been helping our clients to understand new technologies, their supply chains, market requirements, opportunities and forecasts. For more information, contact research@IDTechEx.com or visit www.IDTechEx.com.
