Corporations in the solar and energy storage sectors have long dreamed of combining the two technologies to differentiate products and defend margins. This match shows promise, yielding a USD$2.8bn market over the next five years, according to Lux Research.
Grid-tied solar installations will comprise 675MW, or nearly 95% of a combined 711MW market, while off-grid applications including telecom power claim the remaining 5%. While the off-grid market enjoys higher profit margins, the much larger addressable market for grid-tied systems means they dominate the solar and energy storage market.
“Developers are pushing packaged solar and storage systems in order to stand out as value-adding leaders, but not all benefit equally,” said Steven Minnihan, Lux Research senior analyst and a co-author of the report.
“Residential energy storage will see a boost in adoption due to solar, but the addition of storage will barely move the needle for solar players, driving a paltry 1% increase in global PV sales.”