Energy market research firm Frost & Sullivan has issued a new report on the global market for commercial battery storage systems.
The research firm is expecting the market to increase revenue generation from $160.4 million in 2017 to $1.6 billion by 2025.
Factors driving the increase in revenue generation include:
- Feed-in tariffs and net metering revisions in commercial photovoltaic hotspots
- Subsidies and tax incentives
- Affordable lithium-ion batteries and rising electricity
To generate extra revenue, the research firm recommends battery manufacturers:
- Integrate storage systems with machine learning algorithms to come up with smart self-learning systems.
- Partner with energy management solution providers to develop in-built cloud-based battery monitoring and fault diagnosis platform with relevant cybersecurity measures.
- Collaborate and integrate solutions with AI, predictive and maintenance analytics, and blockchain for superior control over commercial energy usage.
- Gaining a deep understanding of the local regulatory energy markets and incentive policies in order to work with customers from the initial phase.
- Customise and size batteries according to the building load profile following an individual business case analysis.
- Provide bundled integrated energy services with suitable software and technology-agnostic battery solutions.
- The United States, Australia, Germany and the United Kingdom were the dominant markets in 2017, accounting for 84.3% of all installed units from the countries analyzed. By 2025, these countries are forecast to contribute annual revenues of $1.5 billion.
Utham Ganesh, Research Analyst Energy & Environment, said: "Solar paired with storage is increasingly becoming attractive to consumers due to falling solar PV and battery prices as well as the perceptible shift towards decentralised energy.
"The growth of electric vehicles in key global markets is expected to further spur the adoption of commercial battery storage due to its ability to stabilize the grid and generate additional revenue streams."
Ganesh added: "Germany and the UK will be the two biggest markets for commercial energy storage in Europe, driven by customers' desire to avoid TRIAD charges and make the most of the opportunities offered by the local energy trading markets.
"The US market will grow the most globally due to the high demand charges for commercial installations, attractive incentives for solar and storage, and a slowdown in the feed-in tariff and net metering schemes. Australia is likely be the biggest market outside of the US due to the expensive electricity and companies' focus on energy independence from the grid."
You can view more information on the report here.
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