“Household energy storage is like air conditioning in the ’90s.”
One meaning is that it is entering thousands of households in overseas markets like air conditioners in the 1990s; the other meaning is that the shape of household energy storage is gradually equal to the volume of a cabinet air conditioner, and the household integrated machine gradually become a trend.
Affected by the surge in global energy prices, the household energy storage market is showing an explosive trend in Europe and the United States, especially European household energy storage is the world leader.
Household energy storage has low penetration rate, strong overseas policy support, and high customer demand. In developed countries with high electricity prices such as Europe, the United States, Japan, and Australia, it has good economy, rigid demand, strong willingness to pay and price acceptability.
With the current global energy shortage, soaring electricity and gas prices overseas, and the economics of solar energy storage, under the general trend of carbon neutrality, household energy storage will become the fourth high-speed growth in the new energy industry after wind power, photovoltaics, and electric vehicles. the track.
Undoubtedly, this is a hot market that the global industry is keeping an eye on.
In the current situation of tight energy supply and rising raw material prices, household energy storage is still the first to break through.
The phrase “the first look at the household sector in the global energy storage market” shows the popularity of household energy storage.
Large demand in Europe and the United States, strong economic driving force
The underlying reason for the popularity of household energy storage comes from the demand side.
On the one hand, electricity prices in Europe have risen significantly, and the conflict between Russia and Ukraine has exacerbated the European energy crisis. European energy prices have exceeded 200 euros/MWh, and European natural gas prices have risen by more than 8 times since 2020.
The low cost of solar energy storage allows European and American consumers to recover their investment costs in almost 3-5 years. Since 2021, household energy storage has shown an explosive growth trend in the European and American markets with an annual growth rate of doubling.
In 2021, the 27 EU countries will add 25.9GW of photovoltaics to the grid, providing good conditions for household energy storage.
The typical usage scenario of current household energy storage is to form a household solar energy storage system in combination with household photovoltaics. According to estimates, compared with not equipped with photovoltaic and energy storage systems, the ten-year electricity cost savings of photovoltaic and energy storage equipment is 12,673.64 euros, and the investment payback period is 5 years; while only installing photovoltaic systems saves electricity costs of only 4,816.87 euros, photovoltaic + storage The energy solution is highly economical.
A typical household solar energy storage system includes photovoltaic modules, energy storage battery systems, energy storage inverters, etc. According to estimates, generally a set of optical storage system can pay back its cost as short as 3 years.
Residential energy storage has grown rapidly in Europe in recent years. According to statistics, more than 90% of the European household energy storage share is concentrated in the top five countries – Germany, Italy, the United Kingdom, Austria, and Switzerland. Among them, Germany is the largest residential energy storage market in Europe.
In general, the outbreak of the European household energy storage market mainly relies on its excellent economy.
On the other hand, the demand for household energy storage in the United States has also risen rapidly, and giants such as Tesla have further improved the economics of household energy storage. Relevant data show that the total newly installed capacity from 2021 to 2026 will reach 63.4GW/202.5GWh, of which households can reach 4.9GW/14.3GWh.
Recently, Tesla partnered with California public utility PG&E to create a new virtual power plant (VPP), offering eligible Powerwall users a $2 per kWh incentive. It is reported that 50,000 Powerwall users will be eligible for the subsidy.
Estimated based on market power demand and the number of Powerwall users, no matter where they are, they can earn $10-$60 per dispatch. The economics of household energy storage will also be further highlighted in the US market.
The huge space on the demand side has created the prosperity of the market side. Global companies are accelerating the race for residential energy storage.
With the high prosperity of the outdoor energy storage track, Energy storage companies has gradually become a “star” of household energy storage in the industry.