Global Residential Energy Storage Market - 2024 - 2031

Report Overview

The Global Residential Energy Storage Market size was worth US$ 893.01 million in 2023 and is estimated to reach US$ 2,762.08 million by 2031, growing at a CAGR of 15.16% during the forecast period (2024-2031).

Any solar energy storage system is a battery that can be charged by a solar system linked to it, such as a photovoltaic (PV) system. Solar energy harvested from solar panels can be stored using a domestic solar energy storage device. Many households have been searching for innovative ways to link their systems to a battery supply so that they can use the battery at night or during a power outage. The market has performed exceptionally well due to increased demand for home solar energy storage.

A variety of market variables, such as increased demand for sustainable electricity generation and an increase in various government efforts that assist the adoption of solar energy sources in creating electricity, might accelerate the expansion. Solar energy provides only 2.3 percent of total energy sources for power generation, according to the U.S. Energy Information Administration (EIA). The usage of domestic solar energy storage solutions allows homeowners to make the best use of solar energy to generate electricity.

Market Dynamics

The home energy storage industry is expected to be driven by lower lithium-ion battery costs and increased awareness of the benefits of sustainable energy storage in the coming years. However, hefty installation costs and a scarcity of experienced staff may stifle expansion.

The decline in costs of lithium-ion batteries

Lithium-ion batteries have several technical benefits. On average, rechargeable Li-ion batteries survive more than 5,000 cycles, compared to 400-500 cycles for lead-acid batteries. Li-ion batteries are becoming more popular, owing to their technological and economic advantages as the most energetic rechargeable batteries accessible. Battery makers are reducing the cost of Li-ion technology.

The average price of a lithium-ion battery is predicted to continue to fall, reaching around US$ 58/kWh by 2030, making it far more cost-competitive with other battery types. It is likely to lead to the growing use of lithium-ion batteries in new and exciting sectors, such as energy storage systems (ESS) for residential and commercial applications linked with renewables like solar, wind or hydro.

The rising focus on sustainable energy

Many factors, such as increased demand for electricity generated from renewable energy sources such as solar energy, operate as market drivers that promote global growth. The government's active involvement and acceptance of new measures also contribute significantly to the global performance of the residential solar energy storage market.

Homeowners have been looking for more environmentally friendly ways to generate electricity, which has aided the growth of the home solar energy storage sector. Due to growing knowledge of residential solar energy storage equipment, many house owners have been looking for effective and helpful storage alternatives that may help them optimally use solar energy for power generation purposes.

High installation costs

During the projected period, the high installation cost of solar plus battery systems is projected to restrain the growth of the residential energy storage systems market. The significant reliance on new technologies that could be combined into revolutionary solar energy storage systems for home use. Similarly, a lack of professional and competent personnel impedes business organizations' capacity to capitalize on the global residential solar energy storage industry prospects. The scale of the residential energy storage sector and the businesses that operate in it are also influenced by changing regulatory restrictions.

Market Segment Analysis

By technology, the residential energy storage market is segmented into Lithium-ion and Lead-acid.

Wide application of Lithium-ion filters

Compared to lead-acid batteries, lithium-ion batteries provide several technical advantages. On average, rechargeable Li-ion batteries survive more than 5,000 cycles, compared to 400-500 cycles for lead-acid batteries. Li-ion batteries are becoming more popular, owing to their technological and economic advantages as the most energetic rechargeable batteries accessible. Battery makers are reducing the cost of Li-ion technology.

Lithium-ion is likely to solidify its position as the battery chemistry of choice in all energy storage industries, including domestic energy storage, thanks to the significant and continuing cost reduction. The average price of lithium-ion batteries is predicted to continue to fall. It is likely to lead to more lithium-ion batteries being used in new and exciting applications, such as energy storage systems (ESS).

Market Geographical Analysis

The growing adoption of rooftop solar power in Europe

Due to the fast adoption of rooftop solar electricity, there is a considerable need for household energy storage in the region. In recent years, the German domestic energy storage systems market has grown significantly, aided by an incentive scheme that provides a 30% investment subsidy for the battery installation. Germany's energy mix has been changing for the past few years. Rooftop solar accounted for a large portion of Germany's total solar energy generation, owing to sophisticated support mechanisms such as subsidies and loans for roof programs launched in the past.

Germany announced a reform of the Renewable Energy Law or EEG 2021, which includes an exemption from the EEG fee for owners of PV systems for self-consumption with a capacity of less than 30kW. The maximum was formerly set at 10 kW under the prior guidelines. Because most residential systems are in the range above, this EEG levy will benefit the German residential battery market. Furthermore, from July 2020 to 2023, Italy adopted a new super bonus incentive system, which allows for a tax credit of 110 percent for energy efficiency expenditures, incentivizing energy efficiency initiatives.

However, the PV and storage systems must be implemented in conjunction with one of the primary interventions to qualify for the super incentive. The total amount of money spent must result in a higher energy efficiency rating. If it is ineligible, it can still take advantage of the existing 10-year 50% tax credit for small-scale PV-producing assets. The import of low-cost solar panels from China is also driving the home energy storage sector in the region, helping to make photovoltaic technology more competitive.

Market Competitive Landscape

Major global residential energy storage market companies include ABB Ltd., Samsung Sdi Co., Ltd., BYD Company Limited, Eguana Technologies, Schneider Electric, Siemens AG, LG Chem, Tabuchi Electric, SMA Solar Technology and Eaton Corporation.

COVID-19 Impact Analysis

Factory shutdowns, labor shortages, and shipping limitations have impacted the global supply chain for batteries and energy storage components. It caused delays in the development and supply of household energy storage devices. The epidemic generated bottlenecks in the availability of important raw materials including lithium, cobalt and nickel, which are required for battery manufacturing.

Shortages resulted to higher costs and longer lead times for energy storage technologies. Installation of domestic energy storage devices was hampered by lockdowns and social distancing techniques. Homeowners were hesitant to allow installers inside their houses and installation businesses faced operational issues, resulting in a temporary drop in new installations.

Russia-Ukraine War Impact

The ongoing conflict between Russia and Ukraine has had a substantial effect on the residential energy storage market, namely in Europe. The conflict has resulted in heightened instability in energy prices and apprehensions regarding energy security, particularly due to Europe's substantial dependence on Russian natural gas. Domestic energy storage solutions are being implemented faster because governments and consumers are actively seeking alternatives to conventional energy sources.

Battery storage systems are in high demand due to the necessity for energy self-sufficiency and resilience against supply outages, boosting market growth in the region. Governments are prioritizing energy resilience laws by incentivizing solar power and household storage system installations. This shift boosts energy security and aims to cut carbon emissions. Thus, the war has indirectly promoted the home energy storage business by emphasizing the necessity for local, green energy.

By Technology

Lithium-ion

Lead-Acid

By Ownership

Customer Owned

Utility-owned

Third party-owned

By Connectivity

On-grid

Off-grid

By Operation

Standalone Systems

Solar & Storage

By Region

North America

U.S.

Canada

Mexico

Europe

Germany

UK

France

Italy

Spain

Rest of Europe

South America

Brazil

Argentina

Rest of South America

Asia-Pacific

China

India

Japan

Australia

Rest of Asia-Pacific

Middle East and Africa

Recent Developments

In May 2022, Mango Power debuted Mango Power M Series in the Intersolar Munich 2022. Using a solar PV and a 10-20 kWh battery for daily and emergency use, the system is able Supported single and triple-phase connections with 8-14 kW output capacity by the system is Among the several uses the system can be found in built-in inverters, backup gateways and EV chargers. The corporation introduced several variants for the markets of Europe and U.S.

In June 2022, Toyota debuted the O-Uchi Kyuden System, a household battery solution, therefore joining the energy storage industry. Using their electric vehicle battery technology, Toyota debuted a rated output of 5.5 kWh and rated capacity of 8.7 kWh battery storage system. Linked to a photovoltaic rooftop system, a house can run day-and night. The firm first wants to sell the storage solution in Japan.

Why Purchase the Report?

Visualize the composition of the residential energy storage market segmentation by technology, ownership, connectivity, operation and region, highlighting the critical commercial assets and players.

Identify commercial opportunities in the residential energy storage market by analyzing trends and co-development deals.

Excel data sheet with thousands of residential energy storage market-level 4/5 segmentation points.

Pdf report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.

Product mapping in excel for the key product of all major market players

The global residential energy storage market report would provide access to an approx. 69 market data tables, 63 figures and 213 pages.

Target Audience 2024

Residential Energy Storage Third party-owned Providers/ Buyers

Industry Investors/Investment Bankers

Education & Research Institutes

Emerging Companies

Residential Energy Storage Manufacturers