Grid-scale batteries take the lead, residential storage loses share

The European battery energy storage system (BESS) market accelerated significantly in 2025. According to SolarPower Europe's new report European Battery Market Outlook 2026–2030, 36 GWh of new capacity was installed in Europe, up 48% year on year. This was the twelfth consecutive record year, while total operating capacity exceeded 100 GWh for the first time by year-end.

Grid-scale batteries became the market's main driver. These projects accounted for more than half of new installations in 2025, with their capacity reaching 19 GWh, nearly double the 2024 level. Growth is primarily being driven by increasing flexibility needs, greater wholesale price volatility, the ability to combine multiple revenue streams and falling technology costs. Support schemes also play a significant role – according to the report, European mechanisms supported almost 70 GWh of grid-scale battery projects last year.

Residential batteries, by contrast, are losing share, though not volume. Their installations across Europe rose slightly to 12.3 GWh in 2025, but their share of annual installations fell to 34%. They still represent the largest segment in cumulative capacity, although their share fell below half for the first time. According to the forecast, grid-scale batteries are set to overtake the residential segment as early as 2026.

Batteries are rapidly expanding into other European countries

The market is also expanding geographically. Germany, the United Kingdom and Italy remained Europe's largest markets, but Ukraine and Bulgaria newly entered the top five. The two countries installed almost 3 GWh in 2025.

In Ukraine, batteries are increasingly becoming a tool for energy resilience following extensive damage to energy infrastructure.

European market could grow nearly sixfold by 2030

Under SolarPower Europe's medium scenario, new installations will exceed 50 GWh in 2026 and rise to 138 GWh annually by 2030. Cumulative capacity in Europe is expected to reach 582 GWh, roughly six times the current volume. In the EU-27, the same scenario projects 470 GWh. This is significantly below the approximately 600 GWh that Rystad Energy models as the required level to meet European climate and energy targets under its Solar+ scenario.

Regulation remains another obstacle. SolarPower Europe points to differing grid tariffs, the double charging of batteries when importing and exporting electricity, limited access to certain markets and regulatory uncertainty. The organisation therefore advocates a European Battery Storage Action Plan that would harmonise conditions for access to grids and markets and increase investment predictability.

The integration of batteries with solar power plants is also growing rapidly. In the EU, around 20% of newly installed BESS capacity in 2025 was paired with solar generation, compared with 6% a year earlier. Even so, Europe still lags behind China and the United States in this respect.

Batteries are therefore rapidly changing their role – from a supplementary technology for households, they are becoming a major element of Europe's power system. Their importance will grow alongside the share of renewable energy sources, the need for flexibility and pressure to use electricity grids more efficiently.