Storage in Off-Grid Solar Industry Enjoys High Profit Margins
A recent report titled “Batteries Included: Gauging Near-Term Prospect for Solar/ Energy Storage Systems” predicts that by 2018, there will be $2.8 billion worth of demand for integrated solar and storage systems. Although Lux Research’s findings attribute much of the demand to the grid-tied sectors, the off-grid solar-backed storage market is more lucrative. In the report, the break-even price for every installation of an energy storage device in grid-tied scenarios is under $800/kWh. In the off-grid sector, the figure balloons to between $1,200/ kWh to $2,200/ kWh.
What this means is that grid players will experience considerable pricing pressure and margin trimming. Suppliers in the off-grid segment, on the other hand, will have an easier time defending their margins.
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