In 2024, the UK’s energy storage installations reached 4.5GWh, marking a 70% year-on-year increase. This slight edge over Germany has propelled the UK back to the second spot in Europe. Both residential, commercial, and utility-scale storage saw robust growth.
01-Scale Energy Storage Leading Europe
The UK has historically been a frontrunner in Europe’s large-scale energy storage market. While Italy surpassed the UK in terms of large-scale storage installations in 2024, the UK remains the most attractive market for such projects in Europe. In 2024, the UK added 3.7 GWh of new large-scale storage capacity, accounting for 34% of the European total.
With new projects coming online, the UK is poised to reclaim its leading position in 2025 and continue to drive Europe’s energy storage market in the coming years. The UK government has set an ambitious target of 24 GW of large-scale storage capacity by 2030.
The UK’s large-scale storage market has a mature regulatory framework. The government actively supports storage projects through capacity mechanisms and has removed asset size restrictions. Large-scale storage projects can benefit from five different revenue streams, which can be stacked to optimize returns. By 2028, the UK is expected to install 4.7 GWh of new large-scale storage capacity annually, representing 14% of the European total (which is projected to reach 36 GWh).
02-Household energy storage is steadily growing
In 2024, the UK’s “behind-the-meter” market (household storage + commercial storage) accounted for only 18%, far behind large-scale storage. However, in the next few years, it will gradually break away from its “minor role” and grow to 35% by 2028.
Household storage has shown an emerging trend, benefiting from several factors, including: VAT exemption, government support programs for low-income families, lower photovoltaic tariffs, and significantly reduced licensing requirements. Most importantly, UK residential electricity prices are still far higher than before the energy crisis and above the European average.
In 2024, the UK’s household storage installation reached 649 MWh, accounting for 14% of the energy storage market. Despite high interest rates and inflation, the household storage market will grow steadily over the next 5 years, reaching an estimated 919 MWh by 2028.
03-The potential for growth in commercial and industrial energy storage is enormous
In 2024, the installed capacity of commercial and industrial energy storage (C&I storage) in the UK was a modest 150 MWh, accounting for only 3% of the total energy storage market. However, C&I storage has immense growth potential due to improved policy frameworks and significant revenue opportunities from peak shaving, load shifting, and peak-to-off-peak arbitrage. By 2028, C&I storage is expected to surge to 1.7 GWh, capturing 23% of the total market.
04-Outlook for 2025-2028
In 2024, the UK accounted for 20% of the entire European energy storage market. Looking ahead to 2025, it is expected to grow by 40%, with an installed capacity of 6.4 GWh. Among this, residential storage will see a slight increase, reaching around 700 MWh and accounting for 11%. Commercial and industrial storage will double, reaching 300 MWh and accounting for 5%. Large-scale storage will continue to be the “locomotive,” with an installed capacity of around 5.38 GWh, accounting for 84%.
By 2028, it is projected that the UK’s energy storage market will reach 7.4 GWh, accounting for 9% of the new installations in Europe.
