Energy storage has become a strategic pillar for Germany. In 2024, nearly 600,000 new stationary battery storage systems were installed in the country, according to data from the German Solar Industry Association (Bundesverband Solarwirtschaft eV).

With this expansion, installed capacity in the country reached 19 GWh, representing a nearly 50% increase compared to 2023. This storage volume is sufficient to meet the daily electricity consumption of over two million two-person households in Germany. The sector has seen significant progress in all its segments, including residential, commercial, and large-scale storage.

The number of residential storage systems installed reached 1.8 million, with a total capacity of 15.4 GWh. In the commercial sector, storage capacity grew by 26%, reaching a total of 38,000 systems with a combined capacity of 1.4 GWh. Meanwhile, large-scale storage projects have gained unprecedented traction, with the installation of 100 new facilities, doubling the expansion seen in 2023 and adding 0.8 GWh in capacity.

The Managing Director of the German Solar Industry Association, Carsten Körnig, highlights that integrating storage with rooftop photovoltaic systems has become a common and economically viable solution.

According to Körnig, “Smart storage operation not only reduces electricity costs for operators but also eases the load on the grid and lowers the costs of the energy transition”. This progress has been made possible by a combination of financial incentives, declining battery costs, and the development of more efficient storage technologies.

The Role of Regulation and New Bundestag Policies

The expansion of storage is not only driven by increased technological adoption but also by key regulatory changes. The recent legal reform passed in the Bundestag has removed several market barriers, allowing for greater flexibility in energy storage use.

This measure has been widely welcomed by the industry, as it facilitates the integration of these systems into the grid and enhances profitability for operators.

“Storage is the fastest, cheapest, and most effective tool for integrating solar energy into the electricity market and the grid”, emphasises Körnig. However, he warns that further reductions in administrative obstacles and improvements in market planning are necessary to ensure the sector’s sustained growth.

The European Context: Storage Expansion Across the Continent

While Germany leads energy storage deployment in Europe, the continent as a whole is making strides towards greater renewable energy integration. According to data from the European Commission’s JRC Smart Electricity Systems, Europe’s storage capacity is at various stages of development. Currently, 66.8 GW of storage is in operation, with an additional 39.6 GW announced. Moreover, 12.5 GW is in the permitting phase, while 13.9 GW is under construction.

Several European countries have begun to accelerate their energy transition by deploying new storage infrastructure. In the United Kingdom, operational capacity already stands at 8.4 GW, with 18.9 GW announced. France, Italy, and Spain are also expanding their capacities, driven by regulatory frameworks that encourage investment in storage. The development of these technologies is crucial for ensuring greater grid stability, particularly in a context where renewable energy production is highly intermittent.

Projections: Exponential Growth in the Coming Years

The growth of storage in Germany is not expected to slow down. According to industry estimates, large-scale storage capacity could quintuple within the next two years. Demand for these systems will continue to rise due to the electrification of the residential and commercial sectors, alongside the expansion of renewable energy.

Another key factor in the market’s evolution will be the continued reduction in technological costs. The development of more efficient and cost-effective lithium-ion batteries has been a driving force in recent years, and emerging innovations, such as solid-state battery storage and hydrogen storage, are expected to further accelerate adoption.

However, Körnig stresses that there is still work to be done on the regulatory front. “It is crucial to accelerate approval procedures and ensure that storage plays a key role in upcoming reforms of the electricity market design”, the director states.

Energy storage in Germany has reached a turning point, with a 50% increase in just one year and the prospect of massive expansion in the coming years. While the country strengthens its leadership in Europe, the continent as a whole is advancing the integration of storage systems, with over 66 GW in operation and nearly 40 GW in development.

The combination of regulatory incentives, cost reductions, and technological advancements positions storage as a key pillar for the future energy landscape of Germany and Europe. As the sector continues to evolve, the expansion of these infrastructures will be crucial for achieving climate targets and ensuring the stability of the European electricity system.