Over the next decade, further battery cost reductions, additional policy support through tax credits and carbon regulations, and increased renewable penetration should boost demand. In particular, falling solar photovoltaic (PV) costs make solar storage solutions more compelling. However, project economics remains complex and customers need enhanced monetization options. How quickly new business models emerge that provide value via ancillary services or innovative retail models will impact uptake. Meanwhile, new technologies like hydrogen electrolysis and flow batteries aim to compete. Overall, the outlook is positive but uncertain as regulators and businesses explore the evolving role of energy storage technology.

Demand for Peak Shaving and Demand Charge Management: In the commercial sector, businesses are facing escalating electricity costs driven by peak demand charges. Energy storage systems offer an effective solution for peak shaving and demand charge management by storing electricity during off-peak hours when rates are low and discharging it during peak periods to reduce demand charges.

Policy Support and Incentives: Government policies, incentives, and regulatory frameworks are playing a crucial role in driving the adoption of energy storage solutions.

Emergence of Innovative Business Models: The energy storage market is witnessing the emergence of innovative business models, including energy-as-a-service (EaaS) and virtual power plants (VPPs).