According to SolarPower Europe, Europe installed 17.2 GWh of new battery energy storage systems (BESS) during the year, continuing a trend of doubling the market annually for the third consecutive year. The equivalent of 1.7 million additional European homes gained solar battery power in 2023. SolarPower Europe's analysis highlighted that the installed BESS capacity saw a remarkable increase of 94% compared to 2022.

By the close of 2023, Europe's operational BESS fleet had reached approximately 36 GWh. The residential sector contributed 63% of this total, with large-scale battery systems at 21%, and commercial and industrial systems at 9%. Germany was the market leader with a 34% share, followed by Italy at 22% and the United Kingdom at 15%.

Despite anticipated growth in 2024, projections suggest that Europe will still fall short of the 200 GW battery capacity required by 2030 to fully leverage the EU's solar potential. The sector faces several challenges, including unmet targets, inadequate market signals, double taxation, and restrictive grid policies for hybrid renewable installations.

Walburga Hemetsberger, CEO of SolarPower Europe, emphasized that the expansion of battery storage and grid flexibility marks a significant departure from the traditional grid-centric market perspective. This evolution affects infrastructure planning, system operation, and market engagement. She also underscored the importance of the new Electricity Market Design (EMD) legislation, urging swift implementation and reporting on its progress by the European Commission ahead of the 2025 Energy Council.

Solar PV growth, primarily driven by residential batteries, surged in response to the energy crisis as Europeans sought energy self-sufficiency. The residential segment dominated with 70% of the annual BESS installations, followed by large-scale systems at 21% and commercial and industrial systems at 9%. By the end of 2023, the total battery storage capacity had reached 35.9 GWh.

Germany continued to lead, deploying 5.9 GWh of storage, a 152% increase. Italy followed with 3.7 GWh, an 86% rise, and the UK with 2.7 GWh, a 91% increase. Future projections indicate a steady growth in the BESS market, with rates expected to slow to 30-40% between 2025 and 2028. The total installed BESS capacity in Europe is projected to increase more than sevenfold, reaching 260 GWh by 2028.

Antonio Arruebo, a Market Analyst at SolarPower Europe, noted that over the past decade, declining investment costs for battery storage —due to technological advancements, economies of scale, and lower raw material prices— have made solar PV paired with battery storage more cost-competitive. This combination addresses the energy trilemma of security, sustainability, and affordability.

However, with the fossil energy crisis easing, the immediate motivation for European households to invest in energy self-sufficiency may wane, potentially reducing the appeal of solar and storage solutions. Michael Schmela, Director of Market Intelligence at SolarPower Europe, pointed out that while policymakers have emphasized batteries for the automotive sector, their vital role in the green transition of the power system has been largely neglected. He stressed that battery storage flexibility requires urgent political prioritization and attention.

The growth of renewable energy depends on adopting clean flexibility sources like batteries, crucial for the electrification of transportation and heating and for modernizing the grid. SolarPower Europe calls for a comprehensive EU electricity storage strategy and a target of 200 GW by 2030.