Battery storage outpaces solar as clean power pipeline hits 6.7 terawatt-hours

Global momentum stays robust in 2026.

Global cleantech growth remains on a strong trajectory in 2026, with battery energy storage systems overtaking solar photovoltaic as the sector outperformer, as the clean power project pipeline expanded by 165 gigawatts in January to 6.7 terawatt-hours.

S&P Global said solar still leads on overall volume, but the planned and proposed pipeline for battery storage out to 2040 now stands at nearly 12 times existing capacity, compared with just under six times for solar PV.

The latest pipeline increase was driven mainly by solar PV and battery storage, helped by falling equipment prices and rising power demand in some of the world’s largest and fastest-growing markets.

The firm said China’s manufacturing overcapacity has pushed down solar and battery costs, reinforcing Asia’s central role in supporting global project economics.

S&P said solar growth is expected to decline this year for the first time, but described this as market maturation rather than a collapse in demand. Solar remains competitive on both cost and speed to power, even as forecast adjustments have turned more favourable for storage.

The stronger outlook for battery storage is being driven by rising renewable penetration, lower battery costs, and surging electricity demand, which is increasing interest in fast-to-install capacity.

S&P added that geopolitical tensions and fossil fuel price volatility could provide further support for storage and other energy assets that reduce exposure to fuel price swings.