Overseas European electricity costs witnessed a significant surge in the past year, while Europe and the United States have made proactive efforts towards energy structure transformation. To bolster the adoption of solar and energy storage technologies, both regions implemented relevant tax relief policies. Notably, the household installation market has experienced a robust demand for energy storage systems to complement household PV setups. Moreover, considering the continuous growth in cumulative and new household PV installations, it is foreseeable that household energy storage will continue to flourish in the coming times.
The global energy market, particularly in household and portable energy storage, has witnessed rapid development. Notably, Europe and the United States play pivotal roles in the global household energy storage landscape, with each accounting for a significant quarter of the market.
Several factors have contributed to the previous rapid development:
Firstly, geopolitical conflicts have impacted the self-sufficiency rate of energy, resulting in relatively lower energy self-reliance and a continuous increase in electricity prices. Consequently, there has been a rapid surge in household installations as people seek alternative energy solutions.
Secondly, the prevalence of low-floor and separate buildings in overseas regions has facilitated the construction and installation of energy storage systems, making the process less challenging. Thirdly, the popularity of portable energy storage in Europe, America, and Japan can be attributed to their early adoption of outdoor culture. Additionally, specific geographic environments in some regions have fostered a tendency among local residents to proactively prepare for electricity needs.
Currently, the domestic energy storage business model is still in its infancy, leaving the overseas market as a prominent space where national brands strive to achieve their interests. Entering the overseas market offers domestic companies the opportunity to enhance overall revenue, gross profit, and brand value.
Driven by economic factors, the demand for household energy storage remains robust. Similar to portable energy storage, household energy storage holds great appeal to customers. Moreover, professionalism and safety stand as crucial factors for integrators in their competitive endeavors. Offering one-stop after-sales service and establishing excellent brands are key elements for gaining a significant market share and ensuring long-term development.
Portable energy storage finds its primary applications in outdoor activities and emergency power solutions, making up for the vacancy between rechargeable batteries and diesel generators. As a result, product design and safety have emerged as pivotal elements in brand competition. Currently, portable energy storage products enjoy a higher penetration rate in Europe and the United States and are projected to maintain a growth rate of approximately 40% over the next five years.
Europe and the United States household storage:
In 2022, the residential electricity prices surge acted as a catalyst for the remarkable growth in new installed capacity of household energy storage in Europe. Although current residential electricity prices in Europe have slightly decreased, they still remain at a relatively high level, thereby providing solid support for the economics of household solar and energy storage systems. Furthermore, in the aftermath of the European energy crisis, residents have developed an awareness and adoption habits for household light storage systems, leading to an anticipated continuous increase in the household energy storage penetration rate.
Regarding policies, Germany has taken the initiative to reduce VAT on household energy storage, while Italy has implemented tax credits reductions for energy storage. These favorable measures are expected to perpetuate the growth in installed demand, further reinforcing the positive outlook for European household storage demand.
Over the next 3 to 5 years, European household energy storage is projected to sustain its growth trajectory, driven by the rapid development of energy independence policies and the expanding market demand. According to TrendForce’s data, the new installed capacity of European household energy storage reached 1.3GWh in 2020, and it is anticipated to soar to 13.1GWh by 2026.
In the United States, the demand for power backup creates significant market opportunities for household energy storage. Frequent power outages in the country have led to a strong desire among residents for electricity security and independence. As a result, household energy storage systems have become essential household appliances for local residents. Furthermore, the net-metering policy rebate and the introduction of household energy storage subsidies in various states are expected to further fuel the demand for household energy storage in the United States.
Global Household Storage Market:
Flourishing Across Multiple Regions
From a global perspective, the demand for energy storage has thrived over an extended period. Alongside well-established markets like Europe and the United States, the global household energy storage market is also influenced by various factors, leading to its expansion.
The Australian household energy storage sector has already become economically viable. The rapid development of rooftop photovoltaic (PV) installations in the country, contributing to 8.1% of the total power generation, has brought forth the issue of local consumption. In response, the adoption of household energy storage is seen as an effective solution. The proportion of new PV distribution storage in Australia is anticipated to remain at a high level, thereby driving considerable demand for household storage. In terms of user-side energy storage, CER reports indicate that the number of registered small systems installed in Australia reached 50,270 by August 2022, with only 1.6% of rooftop PV households equipped with batteries. However, with increasing retail electricity prices and declining battery storage costs, more users are expected to integrate rooftop PV and battery storage systems. The South African market has faced significant power shortages, necessitating urgent investments in power and energy storage. As projected by the World Bank, South Africa’s cumulative installed capacity of energy storage batteries is expected to experience an impressive 30-55 times growth between 2020 and 2030, indicating a flourishing development in the region.