Over the next 10 years residential energy storage systems (RESS) across the world are expected to boom from under 95 megawatts of systems of annually deployed systems to 3.8 gigawatts of new energy storage systems in 2025 annually. The markets will be led by Australia, Germany, Japan, and the US, according to a new report from Navigate Research.
The report, “Residential Energy Storage," found that RESS systems are growing rapidly, particularly as utilities are beginning to recognize the value in such systems. “The growing popularity of these systems—driven by a growing residential solar PV industry, falling systems costs, rising electricity prices, and a push to improve resiliency—holds enormous potential to dramatically alter the electricity industry in terms of the grid's physical structure, business models, and utility-customer relationships,” Navigant said of the report.
Already numerous companies from Siemens to Tesla are scrambling to develop the better home energy storage system. Even BMW is getting into the game with plans for a home energy storage system that uses its car batteries.
"While the economics of RESSs to save customers money only pencil out in certain markets, the involvement of utilities in this space opens significant new opportunities for market growth," said, Navigant Research Research Analyst Alex Eller. "Residential storage offers numerous benefits for utilities, perhaps most notably the ability to reduce congestion on the network and limit the need for new peak capacity resources."
The report also observed that the market is strongest in a few scattered markets propelled by government subsidies, incentives, and evolving utility rate structures. Combined Australia, Germany, Japan, and the US, are likely to account for 81.4 percent of the market residential energy storage market.Tweet