IHS Markit

The combination of solar plus storage is super-charging the deployment of batteries across the country, and IHS Markit says that the United States will become the largest market for grid-tied energy storage this year.

More than 11 million PV inverters will be shipped in 2019 alone, and most of these will be connected to a software platform and controlled by the inverter companies. This creates an opportunity for suppliers to create new models and revenue sources, writes Cormac Gilligan, research and analysis manager at IHS Markit. And indeed, in recent years inverter suppliers have been rapidly developing ‘Internet of things’ software platforms to take advantage of this.

It’s no secret that global energy demand continues to rise, with some estimating an increase of a third by 2040. Meanwhile, writes David Green, Research & Analysis Manager for Smart Utilities Infrastructure at IHS Markit, the energy industry is on the cusp of a 100 year change away from oil and coal hydrocarbons towards renewables and natural gas. Every stakeholder in the industry has a role to play in the energy transition, including within the industrial sector which accounts for 50% of global energy consumption.

Things are hotting up in the tracker world as the desire to squeeze down the price per Watt of solar power intensifies. And the rise of the trackers is attracting some well-known businesses to buy their way into the field.

As data drifts in, 2018 is shaping up to have been a record-breaking year for battery energy storage, writes IHS Markit senior analyst Julian Jansen. Especially for front-of-the-meter projects, which experienced rapid growth. This growth was led by significant activity in South Korea, the United Kingdom, the United States, Australia, and China, which together accounted for 78% of battery energy storage projects commissioned in 2018, according to the Q4 2018 edition of the IHS Markit “Energy Storage Company and Project Database.”

Around 34.5 GW of PV was installed in China in the first three quarters – 1.5 GW more than expected by IHS analysts, who have raised their full-year guidance.

The Taiwanese analysts expect that overcapacity will force some solar players to abandon their business or file for bankruptcy. IHS Markit also sees further price declines and consolidation in the third quarter, although it does forecast signs of a speedy recovery.

The market research company expects the Chinese market will decline by 15 GW this. Part of this slow-down, however, will be off-set by lower module prices and accelerated demand across markets with pent-up demand.

Analyst data records 53% annual growth in storage in 2017, rising to 1.9 GW as South Korea climbed to top of the tree in terms of cumulative capacity. Global project pipeline has soared to 10.4 GW.

Market analysts IHS Markit believes Australia installed some 7,000 – 8,000 residential storage systems in 2017. “Really strong growth” is expected this year as the economics continue to improve.