How Batteries Are Reshaping the Solar Power Business Model

LONDON, August 2026 — Battery storage is rapidly changing the economics and operating model of solar power, with co-located solar-plus-storage projects emerging as one of the fastest-growing segments of global clean energy investment.

A key example is the Kamoa-Kakula mining complex in the Democratic Republic of Congo, where renewable energy developer CrossBoundary Energy has begun supplying power from a facility combining approximately 357,000 solar panels with 180 container-sized battery units.

The project is designed to provide around 30 MW of firm baseload power, demonstrating how solar generation paired with large-scale batteries can move beyond intermittent electricity supply and provide a more reliable power source for industrial users.

Co-Located Solar and Storage Attracts Record Investment

The growth of solar-plus-storage reflects a broader shift in the global power market.

According to BloombergNEF research cited in the Financial Times, investment in co-located solar and battery projects outside China reached approximately US$25 billion in the first half of the year, almost three times the level recorded during the same period a year earlier.

The United States accounted for the largest increase, with investment in co-located solar and storage projects reaching approximately US$14.8 billion, roughly double the previous year's level.

Other markets also recorded strong growth. Investment in the Middle East and Africa increased nearly sevenfold to around US$5.6 billion, while Australia saw investment double to approximately US$1.8 billion. European investment increased by about 86%, reaching approximately US$800 million.

Batteries Help Solve Solar Curtailment and Negative Pricing

The rapid deployment of solar power has created a new challenge for electricity markets: generation can exceed demand during periods of strong sunlight.

This can result in renewable energy curtailment and, in some markets, periods of negative electricity prices.

Co-located battery systems provide a solution by storing surplus solar generation during periods of high output and releasing electricity later when demand and electricity prices are higher.

This capability allows solar developers to improve the utilisation of generated electricity while providing additional flexibility to power grids.

The economics of this model have also improved significantly as battery costs have fallen. Advances in battery manufacturing, particularly from Chinese producers, have contributed to a sharp decline in utility-scale storage costs.

As a result, renewable energy projects combined with battery storage are increasingly able to compete with conventional fossil-fuel generation on both cost and reliability.

China Shifts Toward Standalone Battery Storage

China played an important role in accelerating the solar-plus-storage model by introducing policies that encouraged renewable energy developers to add storage capacity to new solar and wind projects.

However, the country has since begun moving toward a different approach.

China's central government has moved to end mandatory requirements for renewable energy developers to build or purchase storage capacity, allowing standalone battery projects to compete more directly in the electricity market.

The policy shift is part of a broader strategy to expand new-type energy storage, primarily battery systems, with a target of reaching approximately 300 GW of capacity by 2030.

This suggests that while co-located solar-plus-storage projects are expanding rapidly, standalone BESS may also become an increasingly important component of future electricity systems.

Solar + Storage Becomes a More Flexible Business Model

The rapid growth of battery storage is changing the traditional solar power business model.

Historically, solar projects were primarily valued according to the amount of electricity they could generate. Increasingly, project economics are being determined by when electricity can be delivered, rather than simply how much electricity can be produced.

Adding batteries allows solar projects to shift electricity generation from low-value periods to periods of higher demand. This can improve project revenues, reduce curtailment and provide additional grid services.

For energy-intensive industries such as mining, the combination of solar and storage can also reduce dependence on diesel or fossil-fuel generation while providing more predictable electricity supply.

Battery Boom Signals a Broader Transformation in Clean Energy Investment

The rapid expansion of large-scale battery deployment reflects a broader transformation in the global energy system.

Solar and wind capacity continues to grow, but their variable output is creating increasing demand for flexible resources capable of balancing electricity supply and demand.

Battery storage is emerging as one of the most scalable solutions.

The growth of co-located projects, alongside the expansion of standalone BESS, suggests that the future renewable energy market may increasingly be built around a combination of generation, storage, grid flexibility and intelligent power dispatch.

For solar developers and investors, the opportunity is therefore shifting from simply adding more generation capacity toward building renewable projects that can deliver electricity when the grid needs it most.