During this session, the industry association SolarPower Europe presented an exclusive preview of the new European Market Outlook for Battery Storage 2025–2029, published as part of The smarter E Europe. This annual report analyzes developments in the European battery storage market and provides in-depth insights into key applications such as large-scale storage systems, industrial and commercial storage solutions, and residential storage systems.

Alongside well-founded market projections based on various scenarios, the report also contains specific political recommendations for subsidizing battery storage systems in Europe. The full report is available to download free of charge via The smarter E Digital. This article summarizes the most important forecasts and trends for the period from 2025 to 2029.

Looking back at the European battery storage market 2021–2024

Following three years of dynamic growth, the expansion of battery storage systems in Europe slowed down noticeably in 2024. Between 2021 and 2023, newly installed capacity almost doubled every year. In 2024, however, it increased by only 15 percent to 21.9 GWh – compared to 19.1 GWh in 2023.

The rapid growth up until 2023 is primarily due to the sharp rise in electricity prices. Between June 2021 and March 2023, electricity prices in the EU shot up significantly – by 131 percent for non-household consumers and by 79 percent for private households. These prices made battery storage systems particularly attractive from an economic perspective. Between June 2023 and June 2024, however, electricity prices dropped considerably once again. Non-household consumers paid around 22 percent less, while private households paid some 9 percent less. This drop in energy market pricing had a noticeable impact on battery storage systems, slowing the momentum of the expansion.

In 2024, the market share of residential storage systems was 57 percent, with an installed capacity of 10.8 GWh (2023: 12.2 GWh). The share of commercial storage solutions remained at a steady 10 percent; in absolute numbers, capacity increased slightly from 1.9 GWh (2023) to 2.2 GWh (2024). The share of large-scale storage systems grew significantly to 33 percent (2023: 29 percent) – with an installed capacity of 8.8 GWh, almost double that of the previous year which totaled 4.9 GWh. These figures show that, while the residential storage system market lost momentum for the first time in 2024, large-scale storage systems are increasingly establishing themselves as drivers of growth in the European battery storage market.

Forecasts for 2025–2029

Battery storage capacity in Europe is expected to expand significantly in 2025. Newly installed capacity is set to increase to 29.7 GWh – a rise of 36 percent compared to 2024. Market shares, in turn, are shifting significantly. The share of large-scale storage systems is on track to increase by 15 percentage points, and the commercial and industrial (C&I) storage solutions sector by 2 percentage points, while the residential storage system market is expected to shrink by 17 percent. In 2025, large-scale storage systems are predicted to become the driving force behind the European market and could trigger average annual growth of around 40 percent.

Further acceleration in market growth is projected by 2029. Depending on the scenario, the annual new installations could reach the following capacities:

• Minimum scenario: 66.6 GWh
• Medium scenario: 118 GWh
• Best case scenario: up to 183 GWh

The medium scenario alone would correspond to a five-fold increase in total installed capacity compared to 2024.

In 2029, SolarPower Europe projects a total installed battery capacity of up to 400 GWh in Europe. More likely, however, is a potential of over 200 GWh. The annual growth rate of newly installed battery storage systems is estimated at 40 to 50 percent.

Germany, Italy and the United Kingdom continue to lead the European battery storage market in 2025 and together account for almost 70 percent of newly installed annual capacity. Germany holds the largest market share with 27 percent, followed by Italy with 17 percent and the UK with 11 percent. Other key markets are the Netherlands with 5 percent and Spain with 4 percent.

Market distribution is predicted to shift by 2029. Germany and the UK are each expected to retain a share of 19 percent, while Italy is set to continue to play a key role with a 14 percent share.

From a pan-European perspective, the large-scale storage system market is on track to become increasingly important by 2029 and is expected to dominate the market with a share of 69 percent. The C&I sector is set to grow to 17 percent, while the residential storage system market is predicted to shrink to 14 percent. The downturn in the residential storage system market since 2024 is due to several factors: falling electricity prices, increasing market saturation in countries that were previously leading the way, a slowdown in the rate of inflation and consistently high interest rates. These factors combined have significantly reduced the incentive to optimize on-site consumption.

Despite positive market developments, SolarPower Europe stresses that the European battery storage market needs to grow at an even faster rate to meet the rising demand for grid flexibility. A potential total volume of up to 400 GWh is projected for 2029 – an ambitious but necessary target for the energy transition.