1Q 2018

Market Data: Small Commercial Energy Storage

Advanced Lead-Acid, Flow, and Lithium Ion Batteries for Small-Scale Commercial Buildings: Global Capacity and Revenue Forecasts

As the market for commercial and industrial behind-the-meter distributed energy storage systems (DESSs) continues to mature, market participants are seeing a steady decrease in installed costs. Additionally, as utilities continue to roll out new pricing structures that include peak demand charges and time-of-use (TOU) rates, more commercial and industrial (C&I) facility managers are taking advantage of DESSs to cut costs on their monthly electricity bill. In addition, favorable incentives targeting DESSs or DESSs plus renewables like solar PV are becoming more common. These market drivers are expected to drive strong growth in the DESS market over the next decade.

Savings in the form of tariffs and demand charge reduction are a significant driver for small DESSs (SDESSs). Additional drivers include policies favoring energy storage, including carbon reduction policies, capacity mandates, resiliency initiatives, and tax incentives specifically for energy storage. However, the benefits of an onsite ESS are still lost to many potential small commercial customers. Further, the upfront capital costs of BTM energy storage are steep; smaller systems are typically even more expensive on a per-kilowatt basis than larger C&I systems. Vendors are using creative financing mechanisms such as leases and revenue sharing models to make storage a more realistic option. Market reform is currently underway in several global markets. As these reforms continue, it will provide more clarity on the value of services SDESSs can provide.

This Navigant Research report analyzes the global market for SDESSs that are 250 kW or less in size. The study provides an overview of the market developments, drivers, and barriers that are likely to influence the growth of SDESSs. Global market forecasts, segmented by region, technology, and building type, extend through 2027. The report also examines the regional policy trends and business models related to the small commercial energy storage space.

Pages 34
Tables | Charts | Figures 41

  • What are the leading business cases for distributed energy storage at the small commercial scale (less than 250 kW)?
  • What barriers remain for small commercial owners implementing onsite energy storage?
  • What is the value of energy storage for small commercial owners looking to combine it with onsite solar PV?
  • How large is the small distributed energy storage system (SDESS) market?
  • How quickly will the SDESS market grow and what are the key demand drivers?

  • Energy storage technology vendors and service providers
  • Small commercial facility owners and energy managers
  • Solar PV equipment manufacturers, project developers, and plant operators
  • Power system suppliers and major electronics firms
  • Energy storage/battery component suppliers
  • Utilities and grid operators
  • Government agencies
  • Investor community

1. Executive Summary

1.1   Introduction

1.2   Market Developments

1.3   Market Forecasts

2. Market Issues

2.1   Defining Small Commercial Energy Storage

2.2   Building Types

2.2.1   Office

2.2.2   Retail

2.2.3   Education

2.2.4   Healthcare

2.2.5   Hotels & Restaurants

2.2.6   Institutional/Assembly

2.2.7   Warehouse

2.2.8   Transport

2.3   Overview of SDESS Market Drivers

2.4   Market Barriers

2.4.1   Prolonged Payback Periods

2.4.2   Lack of Awareness of ESS Benefits

2.5   Financing Mechanisms

2.5.1   Equipment Lease Financing

2.5.2   Demand Charge Shared Savings Agreement

2.5.3   Solar PV Plus Energy Storage Power Purchase Agreement

2.6   Regional Market Trends

2.6.1   North America

2.6.1.1   California

2.6.1.2   Massachusetts

2.6.2   Western Europe

2.6.2.1   Germany

2.6.3   Asia Pacific

2.6.3.1   Japan

3. Market Forecasts

3.1   Methodology and Assumptions

3.2   Market Forecast by Technology

3.3   Market Forecasts by Region

3.3.1   North America

3.3.2   Western Europe

3.3.3   Asia Pacific

3.3.4   Rest of World

3.4   Conclusions and Recommendations

4. Acronym and Abbreviation List

5. Table of Contents

6. Table of Charts and Figures

7. Scope of Study, Sources and Methodology, Notes

  • Annual SDESS Power Capacity Deployments by Region, World Markets: 2018-2027
  • Annual SDESS Power Capacity Deployments by Technology, World Markets: 2018-2027
  • Annual SDESS Power Capacity Deployments by Building Type and Total Revenue, North America: 2018-2027
  • Annual SDESS Power Capacity Deployments by Building Type and Total Revenue, Western Europe: 2018-2027
  • Annual SDESS Power Capacity Deployments by Building Type and Total Revenue, Asia Pacific: 2018-2027
  • Annual SDESS Power Capacity Deployments by Building Type and Total Revenue, Rest of World: 2018-2027
  • Annual SDESS Power Capacity Deployments by Building Type and Total Revenue, Eastern Europe: 2018-2027
  • Annual SDESS Power Capacity Deployments by Building Type and Total Revenue, Latin America: 2018-2027
  • Annual SDESS Power Capacity Deployments by Building Type and Total Revenue, Middle East: 2018-2027
  • Annual SDESS Power Capacity Deployments by Building Type and Total Revenue, Africa: 2018-2027

  • C&I ESS Discharge Duration Assumptions by Technology, Global Averages: 2018
  • Distributed (BTM) Energy Storage System Installed Cost (CAPEX) Assumptions by Technology, Global Averages: 2018-2027
  • Annual SDESS Power Capacity Deployments by Region, World Markets: 2018-2027
  • Annual SDESS Energy Capacity Deployments by Region, World Markets: 2018-2027
  • Annual SDESS Vendor Revenue by Region, World Markets: 2018-2027
  • Annual SDESS Power Capacity Deployments by Building Type, World Markets: 2018-2027
  • Annual SDESS Power Capacity Deployments by Technology, World Markets: 2018-2027
  • Annual SDESS Power Capacity Deployments by Building Type and Technology, North America: 2018-2027
  • Annual SDESS Energy Capacity Deployments by Building Type and Technology, North America: 2018-2027
  • Annual SDESS Vendor Revenue by Building Type and Technology, North America: 2018-2027
  • Annual SDESS Power Capacity Deployments by Building Type and Technology, Western Europe: 2018-2027
  • Annual SDESS Energy Capacity Deployments by Building Type and Technology, Western Europe: 2018-2027
  • Annual SDESS Vendor Revenue by Building Type and Technology, Western Europe: 2018-2027
  • Annual SDESS Power Capacity Deployments by Building Type and Technology, Eastern Europe: 2018-2027
  • Annual SDESS Energy Capacity Deployments by Building Type and Technology, Eastern Europe: 2018-2027
  • Annual SDESS Vendor Revenue by Building Type and Technology, Eastern Europe: 2018-2027
  • Annual SDESS Power Capacity Deployments by Building Type and Technology, Asia Pacific: 2018-2027
  • Annual SDESS Energy Capacity Deployments by Building Type and Technology, Asia Pacific: 2018-2027
  • Annual SDESS Vendor Revenue by Building Type and Technology, Asia Pacific: 2018-2027
  • Annual SDESS Power Capacity Deployments by Building Type and Technology, Latin America: 2018-2027
  • Annual SDESS Energy Capacity Deployments by Building Type and Technology, Latin America: 2018-2027
  • Annual SDESS Vendor Revenue by Building Type and Technology, Latin America: 2018-2027
  • Annual SDESS Power Capacity Deployments by Building Type and Technology, Middle East: 2018-2027
  • Annual SDESS Energy Capacity Deployments by Building Type and Technology, Middle East: 2018-2027
  • Annual SDESS Vendor Revenue by Building Type and Technology, Middle East: 2018-2027
  • Annual SDESS Power Capacity Deployments by Building Type and Technology, Africa: 2018-2027
  • Annual SDESS Energy Capacity Deployments by Building Type and Technology, Africa: 2018-2027
  • Annual SDESS Vendor Revenue by Building Type and Technology, Africa: 2018-2027
  • Annual SDESS Power Capacity Deployments by Building Type and Technology, Rest of World: 2018-2027
  • Annual SDESS Energy Capacity Deployments by Building Type and Technology, Rest of World: 2018-2027
  • Annual SDESS Vendor Revenue by Building Type and Technology, Rest of World: 2018-2027

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