The commercial and industrial (C&I) energy storage market is experiencing an unprecedented boom. Recent market data shows that installations increased by an impressive 78 percent in the first quarter of 2025 compared to the same period last year.
Drivers of Growth
"Persistently high energy prices and increasing volatility in the power grids make energy storage solutions a viable investment for companies," explains Dr. Anja Bergmann, energy analyst at the German Energy Agency (dena). The ability to avoid peak loads and thus reduce high grid fees is a particularly decisive factor for many medium-sized businesses.
Technological developments have led to a significant reduction in storage costs over the past 18 months. Lithium-ion batteries for the C&I sector are now offered at prices starting at 350 euros per kilowatt hour – a decrease of over 30 percent compared to the beginning of 2023.
New business models
The new financing models, which are now increasingly being offered on the market, are particularly innovative. "Storage-as-a-Service" enables companies to benefit from the advantages of battery storage without having to make high initial investments. Instead, they pay a monthly fee, which is often more than offset by the savings in electricity costs.
"We are seeing increasing demand for flexible solutions where companies no longer have to own the storage hardware themselves," reports Michael Schneider, Managing Director of storage manufacturer EnergySolutions GmbH. His company has seen a tripling of inquiries for such models since January.
Industrial applications dominate
With a 65 percent share of the total market, industrial applications currently dominate the C&I storage market. Energy-intensive sectors such as metal processing, the chemical industry, and food production are increasingly investing in battery storage.
A prime example is the 5-megawatt storage facility recently commissioned at Stahl AG in Duisburg. The facility not only balances peak loads but also enables the steel producer to participate in the balancing energy market and thus generate additional revenue.
Challenges and Outlook
Despite the rapid growth, challenges remain. "The complexity of the approval procedures and the different regulatory frameworks depending on the federal state are significantly slowing the market's potential," criticizes Dr. Bergmann.
Nevertheless, the forecasts for the coming years are extremely positive. According to a recent study by BloombergNEF, installed C&I storage capacity in Germany is expected to exceed 5 gigawatt hours by the end of 2027 – a tenfold increase compared to 2022.
In light of this development, the German Association of the Energy and Water Industries (BDEW) is calling for a simplification of the regulatory framework for storage technologies. "Storage systems are the backbone of the energy transition. We urgently need a consistent legal framework that does justice to their role in the energy system," said BDEW President Kerstin Andreae.
The amendment to the Energy Industry Act, expected in July, could remove some of the existing hurdles. Until then, the C&I energy storage market remains a dynamic field with enormous growth potential.