- Solar power is reliant on the sun, which limits electricity generation
- Battery Energy Storage Systems (BESS) capture solar energy and store it electrochemically, distributing electricity as it is needed
- The BESS market is projected to grow rapidly as countries worldwide continue to increase solar generation in a shift toward cleaner energy solutions
The demand for renewable energy sources is accelerating worldwide. In 2024, 11% of electricity generated in the European Union (EU) was solar, surpassing coal for the first time. The International Energy Agency (IEA) projects that solar photovoltaics (PV) will become the largest renewable energy source globally by 2029, with global capacity tripling between 2018 and 2023.
However, solar power relies on sunlight and can’t be captured 24 hours a day. So, how does solar power work when the sun isn’t shining? This is where battery storage comes in, the technology that ensures a reliable renewable energy supply day and night. This article explores solar battery energy storage systems and how they efficiently store and supply renewable power from the sun to be used as electricity.
What is a Solar Battery Energy Storage System?
Solar Battery Energy Storage Systems (Solar BESS) capture energy from the sun and store it as chemical, thermal, or mechanical energy. Like batteries in your smartphone or laptop, BESS batteries are charged with the energy, in this case from the sun, which is then stored and distributed as electricity to meet energy demands. BESS also stores energy generated from wind and local electricity networks.
- The energy capacity of a BESS is how much energy can be stored, measured in kilowatt-hours or megawatt-hours.
- The power capacity of a BESS is the amount of energy that can be released when needed, measured in kilowatts or megawatts.
Why Do We Need to Store Solar Energy?
Without energy storage systems, homes and buildings relying on solar power would only have access to electricity when the sun shines. Furthermore, any excess energy captured and unused would go to waste. Solar energy storage systems are crucial for efficiently storing and distributing energy and are key components to expanding renewable energy adoption at a large scale.
Solar BESS can help balance out electricity demand, using stored energy as needed. Battery Management System (BMS) technology is also used to manage electricity demand, prevent overcharging, and ensure safety. AI and machine learning technology are innovating these systems to predict how to use battery storage systems more efficiently.
Solar BESS Integration: Front Vs. Behind the Meter Systems
Battery energy storage systems are used in either Front of the Meter (FTM) systems or Behind the Meter (BTM) systems.
- Front of the Meter (FTM) systems are connected to utility grids to generate and distribute electricity at a large scale.
- Behind the Meter (BTM) systems are installed for commercial and residential energy storage solutions at a smaller scale. For example, solar panels can be installed in a home with a battery system to ensure energy supply in the evenings.
How Will the Solar BESS Market Continue to Grow?
Precedence Research projects that the solar battery energy storage market will be valued at USD 48.14 billion by 2034, growing from USD 5.50 billion in 2024 at a compound annual growth rate of 24.22% during the forecast period. This growth is driven by a strong demand for reliable renewable battery energy storage systems. Government regulations and subsidies to accelerate renewable energy adoption, including wind and solar, also drive this market growth.
Regional BESS Market Trends
In 2023, the Asia Pacific region held the largest solar battery energy storage market share at 54%. At the beginning of 2024, energy storage systems in China cost 43% less than the year before. China has the largest share of the global BESS market, driven by ambitious renewable energy targets announced as part of the 14th Five-Year Plan for Renewable Energy. By the end of 2024, China had increased its new energy storage capacity by twenty times compared to the end of 2021.
In the United States, companies investing heavily in renewable energy utility-scale projects drive the demand for solar battery energy storage. Residential batteries have the highest demand in Europe, the Middle East, and Africa. In 2022, the UK government announced a plan to provide £30 million of funding to develop energy storage systems to accelerate the adoption of renewables and drive down electricity costs. Across the globe, countries are accelerating the transition to renewable energy sources, driving the need for reliable energy storage solutions.
Samsung C&T Joins Forces with LS ELECTRIC for Battery Energy Storage Projects
Samsung C&T is positioned as a global Battery Energy Storage System market leader and is gaining momentum. In 2024, Samsung C&T Trading and Investment (T&I) Group announced a joint venture with LS ELECTRIC to develop battery energy storage systems in the U.S. This collaboration will combine Samsung C&T’s extensive global renewable energy project expertise with LS ELECTRIC’s technical prowess in transmission, substation and distribution.
The two companies will initially collaborate on a 500-megawatt (MW) Battery Energy Storage System project currently being developed by Samsung C&T in the United States.
Samsung C&T is Meeting the Rapid Demand for Renewable Energy
Samsung C&T Trading and Investment Group entered the solar development market in North America in 2018, leveraging its experience in renewable energy projects such as developing renewable energy clusters in Ontario, Canada. Including this latest project, Samsung C&T has a total development portfolio of 23.2 gigawatts (GW) of solar and ESS projects in the U.S.
