Large battery systems drive growth in Germany's energy storage market

Germany's energy storage sector has seen significant growth recently after overcoming some economic and regulatory challenges. Thanks to strong investment, rising demand and technological advances, the market is gearing up for a substantial increase in revenue in 2026.

According to Renewables Now, revenue in Germany's energy storage sector is expected to reach around 17.1 billion euros in 2026, with the potential to rise to as much as 19 billion euros. Growth could be even stronger if regulatory barriers are eased, the news outlet reported.

The sector's growth follows a significant rebound in 2025, when revenue recovered to 15.2 billion euros from 11.6 billion euros in 2024. This brought it close to the 16.1 billion euros recorded in 2023. The turnaround reflects renewed confidence in the technology and its gradual expansion.

Growth driven by large battery systems

The main contributor to this growth is the system infrastructure segment, particularly large-scale energy storage. In 2025, this segment generated revenue of 5.5 billion euros in Germany, an increase of 72%. This growth was largely driven by large-scale battery storage systems.

Germany's installed large-scale battery capacity reached 2.5 GW/4 GWh. It is expected to double in 2026 to around 5 GW/9 GWh, primarily thanks to the integration of renewable energy sources and better opportunities for arbitrage on the electricity market.

Germany's transmission grid development plans indicate that 41 GW to 93 GW of storage capacity will be needed by 2045. Many energy storage projects have therefore already secured grid connection commitments. Analysts note, however, that the pace of growth could be affected by regulatory uncertainty. Relevant legislation includes, for example, rules on exemptions from grid connection charges and agreements for flexible connections.

Importance of the household segment

The household and buildings segment continues to play a major role in the sector and is expected to generate 7.5 billion euros in 2025, almost half of the industry's total revenue. Growth in this segment was driven mainly by heat storage solutions, while electricity storage saw a slight decline. With around 2.3 million systems installed, reaching 3 million storage units in 2026 could generate revenue of 2.5 billion euros.

The industrial and commercial buildings segment is also gaining momentum, with revenue rising by 20% to 1.2 billion euros in 2025. Companies are increasingly investing in energy storage to manage energy costs and ensure security of supply, which is likely to push the segment's projected revenue to 1.7 billion euros in 2026.