Lux Research has released a report Batteries Included: Gauging Near-Term Prospect for Solar/Energy Storage Systems that projects that the coupled Solar and energy storage (lithium ion batteries) market will grow to $2.8 billion in 2018. Lux projects that residential applications will be the primary driver through 2018 growing to 382 MW in 2018. It will be followed by the light commercial segment which is projected to reach 220 MW by 2018. Most of the installations (95%) will be linked to the electric power grid.
Internationally Japan is expected to lead in coupled Solar and energy storage installations, reaching 381 MW by 2018. Germany and the U.S. are projected to follow with 94 MW and 75 MW, respectively.
Government policies are being put in place to stimulate the energy storage market. In 2013 Germany set aside $67 million to subsidize solar-tied energy storage and the U.S. Senate introduced a program that could fund $7.5 billion worth of new storage projects, or about 7.5 GWh of capacity. Receblty the California Public Utilities Commission (CPUC) has mandated energy storage procurement targets for Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE) and San Diego Gas & Electric Company (SDG&E) totalling 1.325 GW.