New report: EU installs 27.1 GWh of new batteries in 2025 as utility-scale storage drives record growth

• 27.1 GWh of new battery capacity installed in 2025, marking the EU’s 12th consecutive record year for battery storage deployment. 

• 55% of all new capacity came from utility-scale systems, confirming large-scale storage as the main engine of EU market growth.

• Residential installations declined by 6%, reflecting continued slowdown driven by lower electricity prices and reduced support schemes. 

• EU battery manufacturing reached 252 GWh of nominal cell production capacity, while persistent gaps remained in cathode and anode material supply.
   
• The EU must create the right conditions to foster battery deployment, by improving permitting, fixing tariff barriers, strengthening supply chains, and ensuring safe, sustainable storage integration across the energy system. 
  
  
  BRUSSELS, Belgium (28 January 2026): The EU installed 27.1 GWh of new battery storage capacity in 2025, a new record year powered by strong utility-scale deployment, according to SolarPower Europe’s EU Battery Storage Market Review 2025. This marks 45% year-on-year growth and confirms that Europe has already expanded its battery fleet tenfold since 2021, rising from 7.8 GWh to 77.3 GWh today. To meet its energy flexibility needs by 2030, the EU must now repeat this tenfold increase, scaling to around 750 GWh by the end of the decade. 

The report shows that utility-scale systems have become the main engine of Europe’s battery storage expansion, delivering 55% of all new added capacity in 2025 and marking a clear shift in the market’s structure. Improved market conditions and better policy frameworks enabled large scale projects to reach record levels. 
 

While behind-the-meter storage continues to play a vital role, residential batteries declined for the second consecutive year, falling by 6% to 9.8 GWh, largely due to lower electricity prices and reduced support schemes. Commercial and industrial battery systems grew modestly but remain a smaller segment of the market.

Walburga Hemetsberger, CEO of SolarPower Europe (she/her), said: “Europe’s battery storage market is growing fast and delivering the flexible capacity our energy system urgently needs. The strong uptake of utility-scale batteries in 2025 shows investors are ready, the technology is mature, and the system benefits are clear. But we must now dramatically accelerate deployment. To support EU security and competitiveness, we need a battery fleet capable of supporting a fully flexible, renewable based energy system.”

The report also highlights the state of EU battery manufacturing, noting that Europe has developed a solid midstream industrial base, with 252 GWh of nominal battery cell production capacity in 2025, but still faces significant structural gaps. While the EU shows strong capabilities in electrolyte and separator production, cathode and anode active material manufacturing remains limited, and over 90% of existing cell capacity is geared toward electric vehicles rather than stationary storage. Project postponements and relatively high production costs continue to challenge competitiveness, underscoring the need for a more resilient and fully integrated European battery value chain.

The report sets out three priority areas for EU action to scale battery storage effectively:
 

1. Accelerate deployment of BESS
 

• Simplify and speed up permitting for storage and hybrid projects.
• Prioritise mature, grid‑friendly projects in connection queues.
• Fix tariff barriers and enable fair access to all power markets.

2. Build affordable and resilient supply chains
 

• Support EU battery manufacturing through targeted investment and innovation.
• Strengthen access to critical raw materials and scale recycling capacity.
• Develop strategic global partnerships to diversify supply.
  
   

3. Strengthen quality, safety and sustainability
 

• Harmonise EU‑wide safety standards and incident reporting.
• Improve rules for recycling and second‑life batteries.
• Implement robust carbon‑footprint disclosure across the battery value chain.

Antonio Arruebo, Lead Author of the report and Market Analyst at SolarPower Europe (he/him) said: “This year’s data shows that the EU storage market is picking up speed again, particularly in large scale systems. At the same time, the decline in distributed batteries reminds us that we still need clearer policy support to unlock more investments for businesses and households. EU battery manufacturing has made significant progress over the past years, but uncertainty remains. Batteries remain renewables’ best allies, essential to integrate clean power, stabilise the system and deliver Europe’s energy transition. Looking ahead, accelerating deployment across all segments will be key to meeting Europe’s goals.”

All the data featured in the EU Battery Storage Market Review 2025 is now available for download on SolarPower Europe's new Market and Policy Navigator, your go-to hub for trusted solar and storage insights. In addition to the latest EU solar PV deployment figures from the EU Solar Market Outlook 2025-2030, published in December 2025, the Navigator now also includes historical battery storage deployment data for Europe. While data at a European/EU-level are publicly available, full-access to European storage deployment figures, per country and per segment, is exclusive to SolarPower Europe members.  

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