Why the Energy Storage Market is Thriving

It's clear that the world needs a rapid and comprehensive shift to renewable energy sources now. Besides the environmental impacts of fossil fuel, growing restrictions and outdated technologies mean that fossil fuel plants will soon become stranded assets.

The world is moving quickly into the future, and the future is renewable energy. Previously, concerns about energy storage and efficiency held back green energy adoption, but technology has advanced so much that these concerns are now moot.

A previous post on Green City Times outlines several ways that energy storage is being developed; including common methods like batteries and pumped hydro, to less common methods like thermal storage, to emerging technologies like supercapacitors. Here we'll take a closer look at how these, and other developments in the industry, are reasons why the energy storage market is growing rapidly.

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Financial Incentives

Part of the growing shift to renewable energy and the growth of the energy storage market can be attributed to government influence. Renewables, like it or not, are a political issue, and thanks to growing pressure from the United Nations more governments are now incentivizing the green energy sector.

According to Frontier Group, incentive programs at federal and state levels have worked to increase renewable energy research, development, and deployment (RD&D). This has helped jump-start the rapid growth of the renewable energy sector, including the energy storage market. As fossil fuels lose their popularity, it's likely that these incentives will continue.

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Growing Consumer Options

Although energy storage is certainly important on a larger scale, consumer adoption of renewable energy plays an equally big role. Creating diverse, accessible options for consumers is important for expanding a customer base, and a growing consumer market is proof that the energy storage industry is growing rapidly.

A write-up on energy storage by Hoymiles points out that individuals can drastically reduce their energy bills by using options like hybrid inverters (residential solar+storage systems). Consumer energy storage technology can increase self-sufficiency up to 80%, balancing grid energy and reducing overall energy costs. This is especially attractive for consumers, who may previously have been on the fence about a shift to renewable energy.

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Better Technology, Cheaper Prices

The energy storage market has grown leaps and bounds over the last decade, and a lot of that has to do with improvements in technology. CNBC reports that developments in lithium-ion battery tech and production have led to a decrease in prices across the board.

Batteries have cemented a place as the future of energy, in both consumer electrics and industrial stages. In fact, experts predict that the U.S. energy storage market could grow to as much as $426 billion within the next decade. Investors also have several choices for buying into the market, such as utility companies, chemical companies, battery cell makers, and much more.

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Adoption of Other Tech

In addition to the above growth factors for storage, the energy storage market is also influenced by the growth and adoption of other technologies. Take the expansion of the electric car market in the United States and Europe, for example. An IEA report notes that 10 million electric cars were on the road in 2020, with the majority of those cars being battery-electric models.

The increase in electric car registrations in countries like China, Germany, and the United States, bodes well for the energy storage market at large. This trend of electric cars doesn't seem to be slowing down any time soon — 2020 was a record year for electric car registrations, and there's likely to be even more growth as the years pass.

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Conclusion

Overall, the energy storage market is on an upward trend. Thanks to the growth of new technologies and a host of other favorable factors, it's likely that this rapid growth will continue into the future. Investors in green energy storage can look forward to more returns in the future, and with good reason.

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Exclusively written for greencitytimes.com by Joan Higgins

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