The grid-tied energy storage market is poised to take off. However, pricing remains inconsistent and economies of scale have yet to translate into accessible system costs for the end user.
Energy storage enabling technology (ESET) is a portion of the energy storage value chain undergoing intensive scrutiny. While battery prices have fallen anywhere from 40% to 60% in the past 18 months thanks to manufacturing innovations and volumes, ESSs still vary wildly in terms of price. This variation is a function of system size, volume ordering, and business models. Now that battery prices have responded to cost pressures, the rest of the balance of plant—or the ESET portion of system cost—is under more pressure to deliver more consistent pricing. Once this happens, more transparency in overall ESS pricing is expected, allowing the industry to scale further. According to Navigant Research, global installed ESET revenue is expected to grow from US$ 605.8 million in 2015 to US$ 21.5 billion in 2024. This Navigant Research report analyzes the global market for ESETs across four distinct market segments: utility-scale storage, community storage, residential storage, and commercial storage.