5 BESS Trends to Watch in 2025

March 1, 2025 BESS trends energy storage

The Battery Energy Storage System (BESS) market continues to evolve rapidly in 2025, with new technologies, applications, and business models emerging. Here are five key trends we’re monitoring closely:

1. Long-Duration Storage Going Mainstream

While lithium-ion batteries have dominated the market for short-duration storage (1-4 hours), we’re seeing increasing commercial deployment of long-duration technologies (8+ hours). Flow batteries, compressed air, and gravity-based systems are moving beyond pilot projects to utility-scale implementations, particularly for grid resilience applications.

Key developments:

  • Major utilities announcing >100MWh long-duration storage projects
  • Cost reductions of 30% for flow battery technologies
  • New regulatory frameworks specifically addressing long-duration storage valuation

2. Vehicle-to-Grid Integration Scales Up

Electric vehicles are increasingly being integrated into grid operations, with bidirectional charging enabling EVs to function as distributed storage assets. Several major automakers have standardized on bidirectional capabilities, and utilities are launching programs to aggregate residential EV batteries.

Key developments:

  • Standardized V2G protocols gaining widespread adoption
  • Simplified interconnection requirements for residential V2G
  • New tariff structures specifically designed for EV owners offering grid services

3. AI-Driven Battery Management Systems

Artificial intelligence is revolutionizing how battery systems are managed, with advanced algorithms optimizing charging cycles, predicting maintenance needs, and balancing multiple revenue streams in real-time.

Key developments:

  • AI systems demonstrating 15-20% improvements in battery lifecycle
  • Predictive maintenance reducing unexpected downtime by up to 70%
  • Self-learning algorithms optimizing between multiple market opportunities

4. Community-Scale Storage Models

Between utility-scale and residential systems, community-scale BESS installations are finding a sweet spot. These systems serve multiple buildings or neighborhoods, often as part of microgrid configurations that enhance local resilience while providing grid services.

Key developments:

  • Innovative financing models splitting benefits between multiple stakeholders
  • Regulatory changes enabling community ownership structures
  • Integration with community solar projects for complete local energy systems

5. Second-Life Battery Applications Mature

As the first generation of EV batteries reaches end-of-life for vehicle applications, second-life usage in stationary storage is scaling up. Standardized testing, certification, and deployment models are emerging for these systems, which offer cost advantages despite lower energy density.

Key developments:

  • Automated battery testing and sorting facilities coming online
  • Warranty structures resolving historical barriers to financing
  • Purpose-built systems designed for easy integration of second-life modules

What trends are you seeing in the BESS market? We’d love to hear your thoughts. Contact our team to discuss how these developments might impact your energy strategy.