Photovoltaic Energy Storage System Market

Market Overview

The Global Photovoltaic Energy Storage System Market size is expected to grow at a CAGR of around 13.6% during the forecast period of 2023-2031.

A Photovoltaic Energy Storage System (PV-ESS) is a hybrid of a solar photovoltaic (PV) system and an energy storage system that captures and saves excess PV energy for later use. A battery, a flywheel, or another form of energy storage technology can be used as the energy storage system.

The PV-ESS device captures solar energy and transforms it into electricity, which can then be used to power appliances, lighting, and other electrical loads. When the PV system produces more energy than is required, the surplus energy is stored in the energy storage system.

The size and capacity of a PV-ESS system can vary based on the building's or facility's energy requirements and the amount of solar energy generated. The cost of a PV-ESS system is determined by variables such as system size, energy storage technology used, and local power costs.

The market for Photovoltaic Energy Storage Systems (PV-ESS) has grown quickly in recent years as the cost of solar PV and energy storage technologies has decreased and more businesses and families have adopted green energy solutions.

The PV-ESS market is highly competitive, with many players providing solar PV and energy storage solutions, such as battery makers, solar panel manufacturers, and energy storage system integrators. The market is anticipated to expand further as the cost of solar PV and energy storage technologies falls and government policies and incentives encourage the use of renewable energy solutions.

Market Dynamics

Market Drivers

• Saving Electricity Bills

The first general benefit of installing photovoltaic cells is a cost reduction in energy bills due to self-consumption. This enables you to reduce your consumption of grid-supplied electricity while avoiding taxes and transportation expenses. The instant benefit is a reduction in bills, which is driving the Photovoltaic Energy Storage System Market Growth.

• Affordability

Photovoltaic system costs have steadily declined over the years, making them more affordable for homeowners and businesses to implement. This has increased the demand for PV energy storage systems, which can help to store excess energy produced during the day for use at night or during low-light times.

• Government Encouragement

Factors driving the PV-ESS market include rising demand for green energy, government initiatives and policies encouraging the use of solar energy, and the need for dependable backup power. Furthermore, developments in energy storage technologies, such as lithium-ion batteries, are making PV-ESS more affordable and efficient, which is propelling the Photovoltaic Energy Storage System Market.

Market Restraints

• Limited Energy Storage Capacity

Photovoltaic Energy Storage System Market Analysis is Restricted Due to Limited Energy Storage Capacity, the storage capacity of photovoltaic energy storage systems is limited, which means they may not be suitable for applications needing high energy demand. Also, Weather Condition Dependence Photovoltaic systems depend on sunlight to generate electricity, making them inefficient during cloudy or rainy weather, The sun's energy is intermittent and unpredictable, and it can only be harvested when there is sunshine. Also, during cloudy weather, the power produced is also reduced.

• Technological Restrictions

Technological Restrictions Because photovoltaic energy storage technology is still in its early stages, there are limitations in terms of energy conversion efficiency and battery storage capability. Due to which Photovoltaic Energy Storage System may face hurdle to expand their market growth.

• Other Factors Restricting Market Growth

Photovoltaic panels are fragile and can be readily damaged. Additional insurance costs are needed to protect the investments. Photovoltaic cells have poor efficiency when compared to other renewable energy sources. Also, long-distance solar energy transmission is inefficient and challenging to carry. The produced current is DC in nature, and converting DC current to AC current necessitates the use of extra equipment such as inverters.

Market Opportunities

• Demand For Cost-Effective and Sustainably Produced Energy Options

The increase in demand for environmentally friendly and cost-effective energy solutions for industrial and commercial energy storage installation is anticipated to drive the growth of the market. Furthermore, the implementation of a PV-ESS can significantly decrease carbon footprints. The use of a Photovoltaic Energy Storage System can help a country become energy independent and decrease its reliance on imported fossil fuels. Furthermore, rising industry interest in renewable energy storage solutions is anticipated to boost investment opportunities over the forecast timeframe.

• Increase Renewable Energy Penetration

Investments will be made in their various national grids to increase renewable energy penetration, enhance system flexibility and resilience, and provide auxiliary services. Grid transformations, better electrification rates, and electricity provision for a rapidly growing population would all generate market opportunities for Photovoltaic Energy Storage System.

Market Scope

Segmental Analysis

Segment By Type

• Photovoltaic Off-grid Power Generation System

A PV system that is off-grid is one that is not linked to the power grid. This implies that all of the energy generated is stored and used locally. Off-grid photovoltaic devices are powered by energy stored in a battery bank.

• On-off Grid Energy Storage System

The most significant disadvantage of an on-grid system is that it does not provide electricity during a grid outage.

• Photovoltaic Grid-connected Energy Storage System

A grid-connected PV system is a solar PV power system that generates energy and is linked to the utility grid. Solar panels, one or more inverters, a power conditioning device, and grid connection equipment comprise a grid-connected PV system.

• Microgrid Energy Storage System

Microgrids combine renewable resources such as photovoltaic and wind energy, as well as battery energy storage devices. The latter is an essential component of a modern energy system because it enables the grid's seamless integration of renewable energy sources.

Segment By Application

• Mountains

PVESS can be used in mountainous regions where there is no grid access. These systems can be used to store and use excess energy produced during the day.

• No-power Zone

PVESS can also be used in places without grid access, such as remote villages or camps.

• Island

PVESS can be used on islands where energy is expensive and is frequently produced using fossil fuels. These systems can be used to collect and use excess solar energy during the day.

• Air Conditioning System

PVESS can also be used in conjunction with air conditioning systems to store excess solar energy during the day and use it at night to fuel the air conditioning system. This has the potential to greatly reduce energy costs and carbon emissions.

Regional Analysis

The Global Photovoltaic Energy Storage System Market is segmented by region as North America, Europe, Asia Pacific, Latin America, and Middle East and Africa.

Asia Pacific

• Photovoltaic Energy Market Opportunity in China

System for storing photovoltaic energy as China currently accounts for more than half of the Asian PV ESS industry, accounting for more than half of the regional market share, there is room for growth in Asia. The Chinese government has implemented a number of policies and incentives to encourage the deployment of PV ESS, including subsidies for PV systems, tax credits for ESS manufacturers, and grid interconnection rules.

In the coming years, the PV ESS market is expected to expand due to the country's aggressive renewable energy targets and attempts to reduce carbon emissions. China, one of the world's fastest-growing countries, is expected to dominate the global battery energy storage market by 2026. Over the forecast timeframe, a lofty target of 1,200

• Emerging Market for PV ESS

India is another emerging market for PV ESS in Asia, due to the country's growing energy demand and increased emphasis on renewable energy. The Indian government has adopted a variety of policies and incentives to encourage the adoption of PV ESS, including green energy feed-in tariffs and ESS installation subsidies. The nation

North America

The growing use of battery storage systems in industries to support equipment with essential power supply in the event of an emergency, such as a grid failure or trips, is anticipated to drive the North America battery energy storage system market will boost the Photovoltaic Energy Storage System market demand in this region. The increased need for uninterruptible power supply in data centres and telecoms to increase corporate productivity is anticipated to drive the market during the forecast period from 2022 to 2029, the North America Battery Energy Storage System Market is projected to grow at a CAGR of approximately 23.2%.

Constant innovation in energy storage technology drives the industry. Power Electronics, located in the United States, is developing twin photovoltaic-inverter-plus-storage solutions and expanding its range of solar charging systems. There is an increasing demand for lithium-ion technology alternatives such as zinc technology, particularly in fire-sensitive areas where lithium-ion batteries are still regarded as somewhat unsafe.

Europe

An Energy Storage System (ESS) is a storage system that captures energy produced at one moment from any energy-producing source for later use at the end user's convenience to reduce imbalances between energy consumption and energy production. The amount of energy and electricity that an Energy Storage System (ESS) can store is defined. (MWh and MW). During the forecast period, the European energy storage market is anticipated to grow at a CAGR of approximately 17.5%.

• Growing Renewable Energy in European Countries

Moreover, in response to Russia's invasion of Ukraine, many European Union countries declared plans to accelerate renewable deployment in order to reduce their reliance on Russian natural gas imports. Germany, the Netherlands, and Portugal have either increased their renewable energy ambitions or accelerated their initial aims. During the forecasted period, this will boost demand for battery energy storage systems, due to which Photovoltaic Energy Storage System market will grow in coming year.

Key Players

1. GREE
2. TECLOMAN
3. Qingdao Anhua New Energy Equipment Co.,Ltd
4. Wasion group
5. Eagle Renewable Energy (Jiangsu) Co., Ltd
6. NingBo CNITECH FUTURE Energy Technology Co., Ltd.
7. TRIENERGY Schweiz AG

Recent Developments

In 2022- Tecloman is preparing to unveil its latest high-voltage residential battery energy storage system (BESS) at Intersolar Europe 2022, the world's biggest solar energy exhibition, which will take place from May 11-13 in Munich, Germany. The event is anticipated to draw 1,450 companies and over 50,000 visitors.