April 12, 2024

Battery Leasing Market is driving towards providing flexible, cost-effective energy as a service

Batteries have become critical to maintaining energy efficiency and reducing dependence on fossil fuels. Battery leasing allows customers to benefit from stored renewable energy without large upfront investments.

The Global Battery Leasing Market is estimated to be valued at US$ 15.03 Billion in 2024 and is expected to exhibit a CAGR of 11% over the forecast period from 2023 to 2030.

Batteries store energy from renewable sources like solar and wind that can be utilized when needed. Battery leasing helps commercial, industrial and residential customers adopt clean energy solutions in a pay-as-you-go model. This removes risks of ownership related to performance guarantees, replacing old batteries and technological obsolescence. Instead of making a one-time purchase, leasing batteries as a managed service offers predictable costs and ensures reliable access to stored power. The Global Battery Leasing Market provides an affordable pathway to reducing carbon footprints and dependence on unstable grid supplies.

Key Takeaways
Key players: Key players operating in the Battery Leasing Market include Nextera Energy, Onewatt, EDF Energy, Engie, EON Energy Solutions, Alpiq, Leclanche, Sonnen, Enel X, Shell, Total Solar Distributed Generation USA, Sunrun, LG Chem, Samsung SDI, BYD, Panasonic, CATL, Tesla, Fluence, Powin Energy.

Growing demand: Rapid uptake of renewable energy along with policies promoting energy storage is fueling demand for battery leasing services across industrial, commercial and residential sectors. Cost savings compared to traditional power sources and option to scale capacities easily based on power needs is boosting adoption.

Global expansion: Major players are focusing on partnerships to expand globally and tap opportunities in developing markets shifting towards more sustainable energy models. Investments are being made to develop larger scale storage projects and virtual power plants leveraging distributed battery networks.

Market key trends
One of the key trends in the Battery Leasing Market is pay-as-you-store models gaining popularity. Under this arrangement, customers pay based on how much power they draw from the battery system for their energy needs. This consumption-based flexible payment structure makes battery services highly affordable and consumption-based billing helps optimize energy usage.

Porter’s Analysis
Threat of new entrants: The high capital requirements for establishing battery storage facilities pose barriers for new companies to enter the market.

Bargaining power of buyers: The presence of many established players gives buyers multiple alternatives to choose from, increasing their bargaining power.

Bargaining power of suppliers: The dependence on battery manufacturers for critical components impacts supplier bargaining power.

Threat of new substitutes: Improvements in renewable energy and V2G technology pose threats of substitution.

Competitive rivalry: Market players compete on the basis of technology, services, and cost.

Geographical Regions
North America accounts for the largest share of the battery leasing market in terms of value due to strong government policies supporting electrification and energy storage deployment. Solar and wind power integration is driving battery storage demand in the region.

The Asia Pacific region is expected to be the fastest growing market for battery leasing due to rapid growth in renewable energy installations, especially solar PV. Countries like China, India, Japan, and South Korea are major contributors to the increasing battery storage demand in this region. Initiatives to modernize power infrastructure with cleaner sources are supporting the battery leasing industry.

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  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it