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Solar Electricity Boom Is Starting: Citi

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The German state bank has announced new subsidies for energy storage. The scheme will subsidize storage facilities for solar energy projects to the tune of €600-€660, depending on whether the installation is new or whether it is retrofitted. The subsidies could mark a new boom in the solar electricity industry according to a new report from Citigroup.

Solar Electricity

Solar electricity and subsidies

The subsidies are targeted at commercial and residential solar projects of up to 30 kWp, which stands for Kilowatt Peak, the maximum output that can be obtained from a solar installation. Battery storage is an incredibly important part of solar electricity installations, and according to the analysts, this project might bring it to the fore.

Battery storage is important because it makes up for the weaknesses of Solar electricity as a power source. The sun shines at wildly different intensities year round, from day to day, and particularly between day and night. Battery power allows solar energy to be used when the sun doesn’t shine, and the Citigroup Inc (NYSE:C) report sees this as the next big move in the industry.


Battery power makes solar a predictable and secure energy source. The necessity of including battery power means that energy storage is the perfect play for investors who want exposure to the solar energy market. Battery storage is a major theme – if the industry grows, so will sales of battery storage.

As the Citigroup Inc (NYSE:C) analysts point out, this trend is in its very early days, and that makes it difficult to get in on. There is one obvious place to look. The biggest driver of innovation in high capacity batteries in recent years has been the auto industry, as they seek to make hybrid and electric vehicles, more efficient.

The report offers a list of battery makers currently working on these kinds of projects, and the auto manufacturers that they are associated with. Capture

In addition here’s the Citigroup Inc (NYSE:C) analysis of the entire lithium ion battery value chain. There’s some idea contained in these about where investors might get exposure to the coming surge in battery storage for solar.

Battery power is still very expensive, and the subsidies in Germany are likely to help with that burden. The United States has been, thus far, very supportive of solar electricity energy projects, so subsidies for storage and security may be on the way.

H/T Rob Wile

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