Solar Battery Market expected to reach USD 757.777 million by 2030

Solar Battery Market Trends & Forecast

According to a research study published by Knowledge Sourcing Intelligence (KSI), the solar battery market will expand from USD 367.130 million in 2025 to USD 757.777 million in 2030 at a CAGR of 15.60% during the forecast period.

To store the extra electricity produced by the solar panels, there is a need to add a solar battery to a solar power system, so that on cloudy days, at night, and during power outages when the solar panels don’t produce enough electricity, it then utilize that stored energy to power the home and industry places. As solar energy becomes more popular in home and industrial applications as an alternative to renewable energy, the market for solar batteries grows. For instance, according to the International Energy Association (IEA), renewable energy sources will have the fastest rise in the electrical industry, increasing from 24% in 2017 to roughly 30% in 2023, this is expected to grow a need for solar batteries which will boost the market growth year-on-year during the forecasted period.

Solar Battery Market Report Highlights

• The market is segmented into lead acid, lithium-ion, nickel-cadmium, and flow batteries. Among these, lithium-ion batteries dominate the market due to their high energy density, longer lifecycle, lightweight design, and rapidly declining costs. They are the preferred choice for both grid-scale storage and renewable energy integration, making them the most widely adopted technology in energy storage systems. Lead acid batteries, though cost-effective, are gradually losing market share due to shorter lifespans and lower efficiency. Nickel-cadmium and flow batteries serve niche applications, with flow batteries gaining attention for long-duration storage, but they remain smaller segments compared to lithium-ion.
• Based on end-users, the market is divided into residential and industrial segments. The industrial segment holds the dominant share as large-scale facilities, utilities, and renewable power plants require significant energy storage capacity for grid stabilization, load shifting, and backup power. Industrial demand is further driven by government initiatives to integrate renewables and strengthen energy security. On the other hand, the residential segment is growing rapidly, supported by rooftop solar adoption, smart home energy systems, and the rising trend of decentralized energy generation, although it accounts for a smaller share compared to industrial applications.
• North America is one of the leading regions in the global battery energy storage market, driven by strong policy frameworks, technological innovation, and large-scale renewable energy integration. The U.S. dominates the regional market, supported by the Inflation Reduction Act (IRA) and state-level policies that provide tax credits and incentives for battery storage projects. The rapid expansion of solar and wind capacity, coupled with the need for grid reliability, is pushing utilities to deploy large-scale lithium-ion storage systems. Canada is also seeing steady growth, driven by renewable integration targets and investments in clean energy infrastructure. The residential storage segment is gaining momentum across the U.S., particularly in states like California and Texas, where frequent grid instability and extreme weather events are encouraging households to adopt solar-plus-storage solutions.

Report Coverage:

Report Metric	Details
Solar Battery Market Size in 2025	USD 367.130 million
Solar Battery Market Size in 2030	USD 757.777 million
Growth Rate	CAGR of 15.60%
Drivers	Increasing urbanization and infrastructure investments Replacement of old fossil fuels with solar energy
Restraints	Economic Viability Challenges
Segmentation	Type End-User Geography
List of Major Companies in Solar Battery Market	LG Chem Enersys Exide Industries Tesla Power India Pvt. Ltd Wisdom Industrial Power Co. Ltd

Solar Battery Market Growth Drivers and Restraints

Growth Drivers:

• Increasing urbanization and infrastructure investments: The energy demand is expected to rise due to several important causes, including a growing population, with fast industrialization, urbanization, and increased infrastructure investments by market leaders will boost the solar battery market growth. For instance, according to IEA, between 2019 and 2030, it is predicted that India’s energy demand would rise by about 35%, and during the next 20 years, India’s urban population is expected to grow by another 270 million people. According to the U.S Energy Information Administration (EIA), in 2021 the total primary energy used in the United States was equivalent to 97 quadrillion BTUs (British thermal units). This means that as energy consumption and urbanization increase, so will the demand for solar energy which will boost the solar battery market.
• Replacement of old fossil fuels with solar energy: As the government is replacing fossil fuels like coal with solar power to generate electricity so that natural resources are being saved which will lead to an increase in the need for solar batteries and thus would increase the market growth. According to the US Energy Information Administration EIA, in 2022 the U.S. expect a 21.5 GW increase in U.S. utility-scale solar generating capacity. As the demand for solar energy had been used to generate more electricity for many years now there is a requirement to store that power and this will increase the demand for solar batteries.

According to the US Energy Information Administration EIA, in 2023 developers intend to add 8.6 GW of battery storage power capacity to the grid, which will treble the nation’s total battery power capacity as batteries can store electricity from solar energy sources for later use. Additionally, there is a definite need for new generating capacity all over the world to satisfy the rising demand for energy in many nations as well as to replace outdated fossil fuel units, particularly coal-fired ones that release a lot of carbon dioxide. Thus, this will increase the usage of solar power as a renewable and less harmful alternative which will help to boost the solar battery market.

Restraints:

• Economic Viability Challenges: The major hurdles that are hindering the global market of recycled solar panels are the economic viability and cost-effectiveness of recycling processes. Despite the increasing significance of recycling used solar cells, serious financial constraints can significantly impede market growth.

Solar Battery Market Key Development

• Product Launch: In May 2025, Canadian Solar Inc. announced that e-STORAGE, which is part of the Company’s majority-owned subsidiary CSI Solar Co., Ltd., officially launched its SolBank 3.0 Plus battery energy storage product at Intersolar Europe.

Solar Battery Market Segmentation

Knowledge Sourcing Intelligence has segmented the Solar Battery Market based on phase type, power output, end-user, and region:

Solar Battery Market, By Phase Type

• Lithium Ion Battery
• Lead Acid Battery
• Nickel-Cadmium Battery
• Flow Battery

Solar Battery Market, By Power Output

• Up to 3 kW
• 3 to 5 kW
• Greater than 5 kW

Solar Battery Market, By End-User

• Residential
• Commercial
• Industrial

Solar Battery Market, By Region

• North America
  • USA
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Taiwan
  • Thailand
  • Indonesia
  • Others
• South America
  • Brazil
  • Argentina
  • Others
• Middle East and Africa (MEA)
  • Saudi Arabia
  • UAE
  • Others

Solar Battery Market Key Players

• Luminous Power Technologies (Schneider Electric)
• Okaya Power Private Limited
• BYD Company Ltd
• U.S Battery Mfg
• SunPower Corporation
• LG Energy Solution (LG Electronics)
• Enersys
• Exide Industries
• Tesla
• Enphase
• Growatt