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Small Commercial Energy Storage Segment Is Expected to Experience Strong Growth
April 24, 2018 | Navigant ResearchEstimated reading time: 1 minute
A new report from Navigant Research examines the global market for small distributed energy storage systems (SDESSs), providing forecasts segmented by region, technology, and building type, through 2027.
As the market for commercial and industrial behind-the-meter distributed energy storage systems (DESSs) continues to mature, participants are seeing a steady decrease in installed costs, along with a variety of other market drivers. For SDESSs (systems 250 kW or less in size) in particular, savings in the form of tariffs and demand charge reduction, as well as policies favoring energy storage, are pushing the market forward in three main regions. According to a new report from @NavigantRSRCH, North America, Western Europe, and Asia Pacific are expected to account for almost 90% of cumulative SDESS capacity between 2018 and 2027.
“The benefits of an onsite energy storage system are often lost on small commercial customers, and educating these customers to deploy SDESSs can be a challenging endeavor,” says William Tokash, senior research analyst with Navigant Research. “But vendors are using creative financing mechanisms such as equipment leases and revenue sharing models, coupled with local incentives, to make storage a more realistic option in the small commercial segment.”
During the next decade, energy storage prices are expected to continue a steady decline, while retail electricity rates and supplemental charges are projected to increase and become more common. Combined, these forces are expected to drive large growth in the SDESS market for the next 10 years, however, deployments are still likely to be confined to specific markets where economics and policy are favorable.
The report, Market Data: Small Commercial Energy Storage, analyzes the global market for SDESSs that are 250 kW or less in size. The study provides an overview of the market developments, drivers, and barriers that are likely to influence the growth of SDESSs. Global market forecasts, segmented by region, technology, and building type, extend through 2027. The report also examines the regional policy trends and business models related to the small commercial energy storage space.
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