Europe added 27.1 GWh of new battery storage capacity in 2025, marking the twelfth consecutive year of record growth, according to the EU Battery Storage Market Review 2025 published by SolarPower Europe. Annual additions rose by 45%, highlighting the rapid acceleration of the sector since 2021, when total installed capacity stood at just 7.8 GWh. By the end of last year, Europe’s battery storage fleet had expanded to 77.3 GWh, representing a tenfold increase in only four years.
Utility-scale, grid-connected battery systems were the main driver of this expansion. Large projects accounted for 55% of all new installations in 2025, signaling a clear structural shift in the market. More supportive regulation and improved investment conditions enabled a record number of large-scale projects to advance, fundamentally reshaping the balance of Europe’s storage sector.
In contrast, household battery installations continued to weaken. Residential storage capacity fell by 6% to 9.8 GWh, extending a downturn that began a year earlier. Lower electricity prices and reduced incentive schemes weighed on demand, while the commercial and industrial segment posted only modest growth and remains a relatively small contributor to total installations.
Despite strong recent momentum, SolarPower Europe warns that much faster expansion will be required to meet future system needs. To provide sufficient flexibility by 2030, the EU would need to replicate the recent tenfold growth and reach approximately 750 GWh of installed battery storage by the end of the decade.
The report also assesses Europe’s battery manufacturing landscape, where nominal cell production capacity has increased to 252 GWh, but structural weaknesses remain. While Europe has solid capabilities in producing electrolytes and separators, output of cathode and anode materials is still limited. More than 90% of manufacturing capacity is currently dedicated to electric vehicles rather than stationary storage, while project delays and high production costs continue to undermine competitiveness.
To address these challenges, SolarPower Europe outlines three key policy priorities: accelerating battery deployment through faster permitting and the removal of tariff barriers, strengthening and diversifying supply chains from raw materials to recycling, and improving safety and sustainability through harmonized standards and transparent carbon footprint reporting.
The organization concludes that battery storage has become an essential partner to renewable energy, playing a central role in grid stability and the long-term success of Europe’s energy transition.
