We spoke with Antonio Arruebo, Market Analyst and Author of the European Market Outlook for Battery Storage, at SolarPower Europe.
1. How has the market for battery storage been evolving?
Batteries are the fastest-growing energy technology in the world and the defining technology of the decade.
Over the past decade, Europe has expanded its battery storage fleet 224-fold, from less than 300 MWh in 2025 to more than 61 GWh by the end of 2024.
This tremendous growth has been driven by three main factors: the outstanding growth of solar PV, requiring flexibility and stability services; the 90% decline in battery prices since 2015; and the energy crisis, which triggered mass household adoption of solar+storage.
From 2021 to 2023, we have seen an acceleration in deployment, with an annual market that has doubled on a yearly basis. More than 60% was delivered by the residential segment. Germany and Italy were the market leaders, given their strong household market, while the United Kingdom witnessed a large increase in grid batteries.
Last year, annual installations rose only by 15%, after the reduction in electricity prices and the phase-out of support schemes for home systems. The decline in the residential market was offset by a historic high buildout in the large-scale segment. Almost 9 GWh were grid-connected, with Italy leading the pack. C&I batteries continued their growth trajectory but below their full potential, as they continue to be tied to electricity prices and the existence of incentive programs.
2. What are the obstacles facing the market for battery storage?
Battery roll-out faces significant market and regulatory challenges that hinder an accelerated deployment that is in line with system integration needs. However, these existing obstacles are not related to the technology itself, but rather to the existing adoption framework. The technology is mature, cheap and ready to be deployed at scale.
Currently, we observe the following barriers: slow and lengthy permitting, grid connection access and grid pricing, lack of energy storage targets and national strategies, fragmented regulatory frameworks across EU countries, limited support schemes for behind-the-meter, grid services not being remunerated, and more.
In order to accelerate and enlarge the deployment of batteries in Europe, all these key issues need to be addressed. Our Medium Scenario, under existing market and policy conditions, envisions 400 GWh to be deployed by 2029, while our High Scenario would lead to 600 GWh. The High Scenario captures an improvement in the regulatory framework, which can be achieved with our Policy Recommendations[1]. This scenario puts Europe closer to the 750-800 GWh that is needed to achieve a more flexible and electrified energy system by 2030[2].
[1] Read our Policy Recommendations in the European Market Outlook for Battery Storage 2025-2029
[2] SolarPower Europe (2024): Mission Solar 2040
3. Why should companies join the platform?
Battery storage systems are the cornerstone of a flexible and electrified energy system powered by renewables. To further integrate solar PV into our power networks, batteries have to be massively deployed, but currently, we are seeing little progress on improving the framework conditions. For that, we need a shared political voice for both the solar and storage industry.
With the platform, we want to: put battery storage at the top of the EU agenda; improve the business case and regulatory frameworks; develop a smart industrial strategy; and create a knowledge-based platform for exchange.
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