The global energy storage market is projected to grow at a CAGR of 19.9%, from $10.37 billion in 2020 to about $37.06 billion in 2027. Despite the challenges posed by supply chain delays, the U.S. solar energy storage market performed exemplarily in 2021. According to the latest report by the American Clean Power Association, the market set new records, with new installations totaling 4,727MWh.
Substantial Numbers Across All Sectors
The adoption of solar energy storage increased across all sectors in 2021. Here is a brief overview of each sector’s performance:
- Residential Solar Energy Storage
Residential users installed 123MW of solar energy storage in Q4 of 2021, up from a previous Q1 of 110MW. This segment grew by 85% from 2020 to 2021. Overall, the total amount of solar energy storage totals 436MW. Annual installations are projected to reach 2GH/5.4GWh by 2026.
Experts credit this segment’s growth to homeowners’ resilient demand for a clean and reliable alternative energy source. The increased adoption of solar-plus-storage solutions in other states besides California, including Florida, Texas, and Puerto Rico, has also helped fuel this growth. It is also worth noting that California plans to install at least one million solar energy storage batteries by 2028.
- Non-Residential Solar Energy Storage
The non-residential solar energy storage segment installed 131MW more in Q4 of 2021. Overall, the segment established a total of 162MW/350MWh in 2021, and this is expected to grow by 1GW annually by 2026. It is worth noting that consumers in New York and Massachusetts are leading the adoption of solar energy storage in this segment.
- Grid Solar Energy Storage
The grid solar energy storage segment is leading the way, tripling year-over-year growth rates. The segment installed a total of 3GW/9.2GWh in 2021. It is also worth noting that an additional 770MW delay is expected to go online by 2022, increasing the total capacity to 1.7GW.
California and Texas are leading the adoption of solar energy storage in this segment. However, more South States are coming on board.
Challenges in the Adoption of Solar Energy Storage
The global energy storage market set new records in 2021, but it could have been better if it wasn’t for supply chain delays. The components required to install solar electric systems are in short supply, and they take longer to get to customers. This has disrupted virtually all industries, and the authorities are working on getting things back on track.
The cost of solar panels and other essential components is also increasing steadily. This is partly because of the supply chain challenges and the ongoing inflation. Fortunately, authorities are offering financial incentives such as tax credits to increase the adoption of solar energy technology.
Your Local Expert in Solar + Battery Storage
Solar energy is becoming increasingly popular because of its numerous benefits to users and the environment. Solar Optimum can help you take advantage of these benefits with our range of solar energy solutions, including solar PV systems and residential battery storage. Get in touch today to speak with one of our Energy Coordinators.
