Battery Leasing Market is thriving through solar energy integration

 

The battery leasing market provides an environment-friendly and cost-effective energy storage solution to help accelerate the integration of solar and renewable energy. End-users can avoid large upfront capital investments and access battery capacity through a simple subscription model.

Batteries are an integral part of the energy storage sector and help capture and intelligently distribute stored solar or renewable energy. They provide backup power during power outages and help reduce dependence on fossil fuel-based peak power. The pay-per-use leasing model has gained popularity as it offers flexibility to consumers without long-term commitments. The global market is driven by the need for affordable clean energy as well as cost savings through reduced electricity bills.

Global battery leasing is estimated to be valued at US$ 15.03 Billion in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030.

Key Takeaways
Key players operating in the battery leasing market are Nextera Energy, Onewatt, EDF Energy, Engie, EON Energy Solutions, Alpiq, Leclanche, Sonnen, Enel X, Shell, Total Solar Distributed Generation USA, Sunrun, LG Chem, Samsung SDI, BYD, Panasonic, CATL, Tesla, Fluence, Powin Energy.

The growing demand for energy storage solutions to maximize the benefits of solar and distributed renewable energy has boosted the battery leasing market. End-users prefer the operational flexibility and convenience of "energy-as-a-service" models for seasonal energy needs without upfront capital outlays.

Major players are also expanding globally with innovative business models to tap opportunities in emerging markets. Strategic partnerships are helping companies offer standardized, scalable battery solutions combined with pay-per-use commercial models.

Market key trends
One key trend gaining traction is the integration of battery leasing with residential solar installations. Major leasing companies are partnering with rooftop solar developers to provide bundled energy solutions. Customers benefit through a single point of contact for solar power generation as well as storage needs. The model helps achieve higher customer acquisition rates for both partners.

Porter’s Analysis

Threat of new entrants: The capital required for setting up a battery leasing business is high due to large investment needs for procurement and installation of batteries. Regulatory norms also act as a barrier.

Bargaining power of buyers: Individual buyers have low bargaining power compared to large commercial and industrial players who can negotiate better deals. Buyers can switch to alternatives like owned batteries if lease pricing is not competitive.

Bargaining power of suppliers: A few large global players dominate the battery manufacturing industry. This gives them significant bargaining power over battery lessors for pricing and procurement terms.

Threat of new substitutes: Alternatives like power purchase agreements and integrating storage with renewable energy projects provide competition. Owned storage is also a substitute.

Competitive rivalry: The market currently sees intense competition amongst existing battery lessors to acquire more customers and market share. Large players are focused on expanding their footprint internationally.

Geographical Regions

North America currently holds the largest share of the global battery leasing market in terms of value due to high renewable energy adoption and supportive policies for energy storage. The U.S leads the region's market.

Asia Pacific is identified as the fastest growing regional market for battery leasing during the forecast period. Significant renewable energy capacity additions and efforts to meet energy demands through storage in densely populated countries like China and India will drive the region's growth.

 

About Author:

Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials,  etc

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it