Europe's battery energy storage market reached a new milestone in 2025, installing 36 GWh of new capacity, a 48% increase compared to the previous year, pushing the continent's total operational battery storage capacity beyond 100 GWh for the first time, according to SolarPower Europe's European Battery Market Outlook 2026-2030.

The expansion marks the 12th consecutive year of growth for the European battery storage market and reflects a structural shift in the sector. Utility-scale battery storage became the leading market segment for the first time, accounting for more than half of all new installations, overtaking the residential sector.

According to the report, the transition has been driven by the increasing need for power system flexibility, improved project economics through revenue stacking, and the rapid deployment of hybrid renewable energy projects combining solar generation with battery storage. Meanwhile, residential demand continued to soften following lower electricity prices and the gradual phase-out of several incentive schemes.

Source: SolarPower Europe

Annual installations could reach 138 GWh by 2030

SolarPower Europe forecasts that annual battery storage installations will exceed 50 GWh in 2026 and continue expanding to 138 GWh per year by 2030, nearly four times the volume installed in 2025. Across the EU-27, cumulative battery storage capacity could surpass 470 GWh by the end of the decade.

However, the association warns that this pace remains insufficient to meet Europe's long-term energy objectives. The European Union has identified a need for approximately 200 GW of battery storage by 2030, highlighting the need for faster deployment supported by stronger regulatory frameworks.

Industry calls for regulatory reforms

SolarPower Europe Chief Executive Officer Walburga Hemetsberger said the market is moving in the right direction but stressed that battery storage deployment must accelerate to keep pace with the rapid growth of renewable energy.

The report identifies several priorities to unlock future growth, including faster permitting and grid connection procedures, the development of electricity markets that properly value flexibility services, and the removal of regulatory barriers that continue to slow investment in battery storage projects.