The demand for energy storage is growing rapidly. In 2022, the world will usher in a new stage of household energy storage explosion, and the penetration rate has room to increase tenfold. Due to the maturity of energy storage technology and cost reduction, energy storage will start to grow rapidly in 2021, and in 2022, due to the rising energy costs and electricity prices in Europe.
At the same time, superimposed on the Russian-Ukrainian war and the large-scale power outages overseas, the high cost of residential electricity consumption and poor power supply stability have brought about a high increase in household photovoltaics, which in turn has brought about an unexpected outbreak of the household energy storage market. Summer is over, winter is here, and energy shortages are a worrying issue across the Western Hemisphere. Rising energy prices have brought new growth points to household energy storage in Europe.
1. Household energy storage: the blue ocean market
Under the global carbon neutrality goal, clean energy will gradually replace fossil energy, wind power and photovoltaic power generation will become the absolute main force of new energy, and the installed capacity will continue to maintain high growth. As the proportion of new energy power generation increases, the demand for energy storage will further increase. Energy storage is widely used on the power generation side, the grid side, and the power consumption side, and can well solve the problems of new energy power generation, instability, randomness, and intermittency.
With the development of global new energy, in the future, every household may be equipped with distributed power generation. With the increase in the proportion of new energy power generation, the power balance mode of the entire power system also needs to be reconstructed, and the necessity of portable power station will be further highlighted. What is energy storage? Simply put, it is to store the electricity generated and use it when it is needed. From the production of electricity to the final use, the approximate process is: production of electricity - transmission of electricity - use of electricity.
In the above three links, energy storage can be established. According to the application scenarios, energy storage can be divided into: power generation side energy storage, grid side energy storage and user side energy storage. Household energy storage can also be called home energy storage, through the combination of distributed photovoltaics and home energy storage. In residents' homes, the households are powered by new energy power generation equipment such as solar energy, and the electricity is managed at the same time, and the excess electricity is stored and supplied to the grid. After all, the core logic of household energy storage growth comes from the fact that household energy storage can improve the efficiency of self-generated electricity and reduce economic costs.
Especially under the Russian-Ukrainian conflict, the reduction of economic costs and the characteristics of self-sufficiency are particularly important. What is the prospect of home energy storage, perhaps we can find out from a set of data in the United States. According to Energy Sage's survey on the needs of household energy storage users in the United States, ensuring the reliability of electricity consumption and achieving the purpose of self-power supply and economic reasons have become the main reasons for the majority of users to support household energy storage.
Why household energy storage has received so much attention from the market is related to the characteristics of household energy storage. First of all, from the user side, household energy storage can play a role in reducing electricity bills. This is particularly important in the face of energy shortages. The second is to improve the reliability and stability of the power supply. Household energy storage can be used as an emergency power supply to reduce the adverse impact of power outages on normal life, and as an emergency backup power supply in the face of major disasters leading to power interruptions in the power grid, improving the reliability of home power supply.
2. The current status of household energy storage market
Driven by European policies and economics, household energy storage have exploded, and U.S. household energy storage have grown rapidly. European household energy storage installed capacity shows explosive growth, of which Germany is the world's largest household energy storage market. In the global household energy storage market, the installed capacity of Germany, the United States, Japan and Australia far exceeds that of other countries.
In terms of shipments, Europe, the United States, Japan, and Australia are at the forefront. According to relevant data, in 2020, the global installed capacity of household energy storage is 4.5GWh, of which Germany, the United States, Japan, and Australia are the top four installed capacity markets, accounting for 25%, 23%, 18%, and 9% of the installed capacity respectively. The main countries that develop household energy storage are the United States, Germany, and Australia. Demand for self-generated renewable energy and energy storage is surging in many countries due to rising electricity prices. Among them, the European market is developing rapidly.
One of the reasons is that due to the Russian-Ukrainian war, there is a shortage of energy in Europe, and there is an urgent need to develop clean energy to ensure energy supply. Looking at the European market, Germany is the best in terms of household energy storage. The reason is related to the skyrocketing electricity price in Germany and Germany's good new energy foundation. Secondly, due to the relatively good development of the new energy industry in Germany, the infrastructure of residential solar energy supporting facilities is also very complete.
Relevant data show that 85% of residential battery energy storage systems in Germany will be deployed in conjunction with new residential solar power generation facilities, while 15% of household energy storage systems will be deployed in conjunction with operating residential solar power generation facilities. In 2020, its new energy power generation will account for nearly 50%, and the relative application demand of energy storage is also relatively large. At the same time, European countries have introduced a series of favorable policies to promote energy transition. Take Germany as an example. According to relevant information, Germany has advanced its 100% renewable energy power generation target from 2050 to 2035, and achieved 80% renewable energy power generation by 2030.
Energy storage is a related field of carbon neutrality, and its development prospects are quite broad. With the further improvement of household energy storage related technologies and the reduction of related costs, the energy storage market will usher in further growth. Our website had summarized the top 10 home energy storage battery companies in China. You can read this article to see the development layout of these companies for home energy storage. At present, the cost of energy storage systems needs to be reduced, and the Chinese energy storage field is still dominated by the European and American markets. However, China still has huge potential users, and the market for household energy storage to go overseas is still worthy of attention.