Hybrid Solar Plus Storage Technology Markets Explored Globally
Market drivers include hybrid solar plus storage purchase agreement prices, policy changes to energy codes and responsible land use
A new report from Guidehouse Insights explores the market for solar plus storage hybrid/colocated systems globally.
Intermittent renewable energy generation technologies via solar PV have surged to capture a record share of global electricity generation, and they continue to expand. Technology improvements, cost reductions, and policy support and shifts underpin this growth. According to a new report from Guidehouse Insights, the North American market is currently the largest globally for renewables plus storage and projected to remain so through at least 2032. Leading the region’s growth are new solar plus storage projects in the US, and policy changes that encourage growth of hybrid systems. In 2023, North America is expected to see 11,881 MW of new energy storage system (ESS) capacity installed alongside solar PV, and 27,259 MW of total utility-scale power capacity. ESS capacity installed alongside solar PV in the region is projected to reach 24,269 MW by 2032.
“Given the variability of power supply from solar PV, integrating increased levels of renewable energy onto electricity grids reliably and cost-effectively will require solutions that improve grid flexibility,” says Erin Winkler, research analyst with Guidehouse Insights. “Energy storage technologies are capable of capturing energy for use at another time, particularly when it is most needed or more valuable. Long-term contracts, priority access to the grid, and increased funding suggest that the deployment of intermittent renewable energy generation technologies will continue to expand rapidly in the coming decade.”
Deploying energy storage technologies is one solution for improving grid flexibility and facilitating large amounts of intermittent renewable energy onto the grid. Multiple energy storage technologies are available in the market with a wide range of power ratings, storage capacities, response times, efficiencies, capital costs, and scalability. The energy storage market is widening as more competitive storage system technologies reach commercial readiness and offer benefits over other current storage systems, according to the report.
The report, Hybrid Solar Plus Storage Technology Markets, examines the current market for solar plus storage hybrid/colocated systems globally, by region, over a 10-year period as influenced by pricing expectations, capacity build-out, and policy. It has a large focus on current incentive plans and the need for more storage on the market to maintain current and future renewable energy generation and the applications of these systems. An executive summary of the report is available for free download on the Guidehouse Insights website.
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* The information contained in this press release concerning the report, Hybrid Solar Plus Storage Technology Markets, 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.