Global Solar + Storage Market Accelerates in 2025

Utility-Scale Co-Located Projects Lead Growth Across North America, Europe, and Emerging Markets

September 2025 — The international market for solar photovoltaics (PV) paired with battery energy storage systems (BESS) is entering a new phase of rapid expansion. In the second half of 2025, developers and utilities worldwide are moving beyond pilot projects to deploy large-scale “solar-plus-storage” installations that deliver firm, dispatchable renewable power.

Industry analysts project global solar capacity additions to rise strongly in 2025, while BESS deployment is set to grow in tandem, creating a new foundation for energy security and grid flexibility.

Regional Highlights

• North America: The United States is leading the shift with multi-hundred-megawatt solar projects coupled with gigawatt-hour-scale storage now operational in California and Texas. Robust private investment, including record financing deals, underscores confidence in the sector.

• Europe: SolarPower Europe forecasts a sharp increase in battery installations through 2029, as EU member states prioritize firm renewables and address grid congestion. Co-located systems are gaining favor due to limited interconnection capacity.

• Asia & Middle East: Competitive auctions are driving down costs, with India setting new records for hybrid solar-plus-storage tariffs. National policies aimed at securing supply chains are further supporting large-scale rollouts.

• Emerging Markets: In Africa, Latin America, and the Caribbean, deployment is smaller in scale but strategically significant, with storage enabling reliable off-grid and weak-grid solutions. Donor-backed and blended-finance models are expected to fuel early growth.

Growth Drivers and Risks

Falling lithium iron phosphate (LFP) battery costs, higher residential attachment rates, and the rise of grid market products such as capacity payments are pushing the market forward. However, risks remain, including interconnection delays, regulatory complexity, and supply-chain uncertainties.

Outlook

Over the next two to three years, co-located solar-plus-storage projects will continue to dominate new capacity pipelines, supported by utility procurement and commercial demand for reliable, renewable energy. Companies that combine robust project pipelines, proven LFP technology, and advanced software for revenue optimization are best positioned to lead the next phase of growth.