Batteries for Solar Energy Storage in the North American Market, Forecast to 2028: Featuring Profiles of BYD Co, EnerSys, Leclanche, LG Electronics, and Samsung SDI Co
Dublin, April 24, 2024 (GLOBE NEWSWIRE) -- The "North America Batteries for Solar Energy Storage Market, Competition, Forecast & Opportunities, 2028" report has been added to * ResearchAndMarkets.com's* offering.
The North America Batteries for Solar Energy Storage market is anticipated to grow robustly in the forecast period, 2024-2028. The main driver of the demand for batteries for solar energy storage is the rise in the number of renewable and solar energy projects. According to statistics from the US Energy Information Administration (EIA), power plant operators and developers aim to add 51 GW worth of new solar and battery storage projects to the US power grid by the end of 2023, accounting for up 60% of the country's additional producing capacity.
*Market Drivers*
· The primary driver of the demand for batteries for solar energy storage is the rising interest rate of solar and renewable energy projects.
· The US Energy Information Administration (EIA) predicts that 21.5 GW of solar power producing capacity will be added to the nation's power system by the end of 2023. Additionally, as of April 2022, the US Bureau of Land Management (BLM) built 39 utility-scale solar projects, totaling more than 29 GW of plant capacity, on federal lands in six western states by the third quarter of 2025.
· Additionally, IRENA (International Renewable Energy Agency) predicts a 40% annual growth in energy storage through 2025. Furthermore, New York State had objectives of 70% renewable energy under the Climate Leadership and Community Protection Act. 3,000 MW of storage will be available by 2030, with 1,500 MW by 2025. Thus, defining goals to generate renewable energy through solar, storage, and battery system are the factors propelling the market growth in the forecast period.
· Nowadays, Mexican government is promoting renewable and Solar Energy Project, due to which the market of Batteries for Solar Energy Storage is further expected to grow in the forecast period. Also, the main causes of the rising demand for batteries in Mexico and the expansion of the clean energy industry are the country's rising solar energy investment and public knowledge of the benefits of using these sources of energy. According to the PV solar group AMIF, the second half of 2022 saw investments in solar power of up to USD 500 million. Furthermore, the Mexican government built Latin America's biggest PV plant in June 2021, which costed around USD 2 billion. The renewable city movement is being led by Mexico City and planning to install 350 MW of distributed solar power by 2024 and allocate USD 17.1 million annually.
*Decline in Prices of Lithium-Ion Batteries*
The market has a good opportunity for growth as a result of the drop in lithium-ion battery prices. According to studies by the Massachusetts Institute of Technology, further steep price declines could be possible, which would be advantageous for products like laptops, cell phones, stationary storage, battery storage, and electric vehicles, all of which need to become more affordable if the technology is to be adopted widely.
Lithium-ion battery prices have decreased mostly as a result of publicly supported research, particularly in the fields of chemistry and materials science, which has made a significant impact on battery costs. Thus, declining prices of lithium-ion batteries hold lucrative opportunities for the battery manufacturers, augmenting the production capabilities and helping the market grow faster.
*Rising Awareness of Renewable Energy and Favorable Government Regulatory Policies*
In order to secure sustainable energy with reduced carbon dioxide emissions, renewable energy sources are required. People have been encouraged to utilize more solar, wind, biomass, trash, and hydroelectric energy, in response to the increased awareness of the desire to save energy. Systems for storing solar energy are used to store energy to be utilized at night or when energy demand is at the highest level.
Therefore, as an alternative to traditional energy sources, both developed and emerging countries are vigorously supporting and implementing solar energy. Solar energy consumption has increased as a result of consumers' increasing awareness of renewable energy sources. According to information provided by the International Renewable Energy Agency (IRENA), the installed capacity of solar energy produced by PV modules is expected to continue to rise in the years to come, which will boost the demand for storage options.
Due to the expansion of supportive government policies, tax breaks for the production of solar energy, and large investments from major companies, the North America batteries for solar energy storage market is anticipated to grow. One of the most important federal policy tools for promoting the expansion of solar energy in the US is the solar Investment Tax Credit (ITC). the ITC offers a tax credit of 26% in 2021.
*High Initial Investment in Battery Manufacturing Process*
One of the most popular forms of energy storage in the solar business is the battery, which includes lithium-ion, flow, and lead-acid batteries. Due to a rise in the viability of electric vehicles and commercial energy storage capacity, the boom in battery production has resulted in an 85% drop in the price of batteries. Preparing the electrodes, assembling the cells, and activating the battery electrochemistry, are the main steps in the manufacture of batteries. 48% of the total cost of production was accounted for by electrode coating, drying, cell formation, and aging.
The most important aspects that must be considered during the production process are those large capital investments and costly processes. Due to this large investment in the process, the market players will face problems. Due to its desirable characteristics, such as their light weight, high energy density, and efficiency, up to ten times longer life, and the ability to offer 80% of rated capacity after 2,000 cycles, batteries used in solar energy storage are often more expensive than other battery types. These elements make the initial investment in battery manufacture pricey, which restrains market expansion.
*Report Scope*
In this report, North America Batteries for Solar Energy Storage Market has been segmented into the following categories:
*North America Batteries for Solar Energy Storage Market, By Battery Type:*
· Lead acid
· Lithium-Ion
· Nickel Cadmium
· Others
*North America Batteries for Solar Energy Storage Market, By Application:*
· Residential
· Commercial
· Industrial
*North America Batteries for Solar Energy Storage Market, By Connectivity:*
· Off -Grid
· On-Grid
*North America Batteries for Solar Energy Storage Market, By Country:*
· United States
· Canada
· Mexico
*Key Attributes*
*Report Attribute* *Details*
No. of Pages 140
Forecast Period 2023-2028
Estimated Market Value (USD) in 2023 $3.58 Billion
Forecasted Market Value (USD) by 2028 $9.17 Billion
Compound Annual Growth Rate 17%
Regions Covered North America
*A selection of companies mentioned in this report includes, but is not limited to:*
· BYD Co. Ltd.
· EnerSys
· Leclanche SA
· LG Electronics Inc.
· Samsung SDI Co. Ltd.
· E3/DC GmbH
· SimpliPhi Power
· Alpha ESS Co. Ltd.
For more information about this report visit https://www.researchandmarkets.com/r/cth28c
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· North American Batteries for Solar Energy Storage Market
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