Global Spending on Distributed Energy Resources in Commercial Buildings Is Expected to Reach $39 Billion in 2030
The falling cost of these technologies and their associated management software is one of the main factors supporting adoption
A new report from Guidehouse Insights examines the global market for distributed energy resources (DER) technologies in commercial buildings, including EV chargers, solar PV, and battery storage, providing forecasts for these technologies through 2030.
DER are rapidly expanding in commercial buildings. The costs of distributed assets are falling and their effects on the grid and utility budgets are net-positive and improving consistently. According to a new report from Guidehouse Insights, global spending on DER in commercial buildings is expected to reach $38.6 billion in 2030, growing at a compound annual growth rate (CAGR) of 9.1%.
“Price reductions for PV modules, inverters, and balance-of-system components are expected to drive cost reductions, while installation costs will likely remain inflexible,” says Daniel Talero, research analyst with Guidehouse Insights. “Proliferation of EVs has also increased rapidly, creating the need for added distributed charging infrastructure in commercial buildings for passenger vehicles in education, office, retail, healthcare, and hospitality settings.”
Since market drivers and barriers vary by technology and building characteristics, building owners, vendors, and utilities should consider the following when investing in commercial buildings DER: careful property characteristics evaluation, separate EV charging system metering, system sizing according to the contribution of EV charging to the building peak load, system promotion as direct self-consumption solutions, more integrated technology solution development, and program- and system-based planning.
The report, Market Data: DER in Commercial Buildings, examines the global market for DER technologies in commercial buildings, including EV chargers, solar PV, and battery storage. The study analyzes market issues, such as drivers and barriers associated with the self-consumption business model. Global market forecasts for spending, segmented by technology, vertical, and region, extend through 2030. An executive summary of the report is available for free download on the Guidehouse Insights website.
*The information contained in this press release concerning the report, Market Data: DER in Commercial Buildings, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.