The battery leasing market allows customers to lease large-scale battery storage systems for a fixed monthly fee rather than purchasing the system outright. Battery leasing provides flexible energy storage solutions for utilities, commercial businesses, and industrial facilities looking to integrate more renewable energy sources and reduce peak electricity costs. Battery leasing systems capture excess solar or wind energy production and store it for later use, helping offset reliance on the grid during peak hours.
The Global Battery Leasing Market is estimated to be valued at US$ 15.03 Bn 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. Battery leasing provides a more cost effective and scalable alternative to battery ownership for customers. It allows flexibility to scale storage needs up or down based on evolving capacity requirements. Major leasing companies are expanding globally to capitalize on the rapidly growing deployment of renewable energy plus storage projects worldwide.
Market Drivers
The increasing demand for flexible and scalable energy storage solutions from utilities and commercial businesses is driving the battery leasing market. Battery leasing removes high upfront capital costs and technical risks associated with battery ownership. It allows customers to pay a fixed monthly fee for clean energy plus storage. The growing integration of renewable sources like solar and wind further boosts the need for battery storage to improve grid flexibility.
Market Restrains
High battery costs continue to restrain widespread battery storage adoption. However, battery costs are declining significantly with rising production volumes. Additionally, geopolitical risks associated with controlling raw material supplies for batteries production poses a challenge. Lengthy contract terms and lack of secondary markets for used batteries also limit the battery leasing market potential currently.
Segment Analysis
The battery leasing market can be segmented by battery type, application, and region. Within battery type, lithium-ion battery segment is expected to dominate the market owing to high energy density and long cycle life of lithium-ion batteries. Lithium-ion batteries are increasingly being preferred over lead-acid batteries for energy storage.
Within applications, the residential segment is projected to be the largest sub-segment during the forecast period. Rising installation of rooftop solar panels for self-consumption of solar energy is driving the adoption of battery energy storage in residential applications. Residential energy storage helps homeowners benefit from time-of-use electricity rates by shifting the load to off-peak hours and provides back-up power during grid outages.
Regional Analysis
The Asia Pacific region is anticipated to show the fastest growth in the global battery leasing market during the forecast period. Increasing investments by governments and private firms in renewable energy integration are driving the demand for battery energy storage in the region. Countries such as China, South Korea, Japan, India are at the forefront of deploying large-scale battery energy storage projects to enhance grid flexibility and reliability. North America is expected to continue its dominance, led by frequent product launches and expansions by leading battery manufacturers and leasing companies in the US. Supportive government policies and growing awareness among commercial and industrial consumers are fueling the market in Europe.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it