Home energy storage system, also known as battery energy storage system, the core of which is a rechargeable energy storage battery, usually based on lithium-ion or lead-acid batteries, controlled by a computer, in coordination with other intelligent hardware and software to achieve the charging and discharging cycle. Home energy storage systems can usually be combined with distributed photovoltaic power generation to form a home optical storage system, the installed capacity is ushering in rapid growth.
The core hardware equipment of home energy storage system includes two types of products, batteries and inverters. From the user’s side, the home photovoltaic storage system can eliminate the adverse effects of power outages on normal life while reducing electricity bills; from the grid side, home energy storage devices that support unified dispatch can ease the tension of electricity consumption during peak hours and provide frequency correction for the grid.
From the battery trend, energy storage battery to higher capacity evolution. With the increase in residential electricity consumption, the amount of electricity per household gradually increased, the battery can be modularized to achieve system expansion, while high-voltage batteries become the trend.
From the trend of inverter, the demand for hybrid inverter suitable for incremental market and off-grid inverter without grid connection is increasing.
In terms of end-product trends, the current split-type is dominant, i.e., the battery and inverter systems are used together, and the subsequent development will gradually move towards the all-in-one machine.
From the regional market trend, the different grid structure and power market cause the mainstream products in different regions to be slightly different. Grid-connected mode in Europe is the main mode, the United States and off-grid mode is more, Australia is exploring the virtual power plant mode.
Why does the overseas home energy storage market continue to grow?
Benefit from the distributed PV & energy storage penetration double wheel drive, overseas household energy storage rapid growth.
Photovoltaic installation, Europe’s high degree of energy dependence on foreign energy, local geopolitical conflicts exacerbated the energy crisis, European countries have upwardly adjusted photovoltaic installation expectations. Energy storage penetration, rising energy prices prompted by the rise in residential electricity prices, energy storage economy, countries have introduced subsidy policies to encourage household energy storage installation.
Overseas market development and market space
The United States, Europe, and Australia are the current major markets for household energy storage. From the point of view of market space, it is expected that the global 2025 new installed capacity of 58GWh. 2015 global household energy storage annual new installed capacity is only about 200MW, since 2017 the global installed capacity growth is more obvious, to 2020 the global new installed capacity reached 1.2GW, a year-on-year growth of 30%.
We expect that, assuming a 15% storage penetration rate in the newly installed PV market in 2025, and a 2% storage penetration rate in the stock market, the global household energy storage capacity space reaches 25.45GW/58.26GWh, with a compound growth rate of 58% in installed energy in 2021-2025.
Global annual installed capacity additions for home energy storage (MW)
Which links in the industry chain will benefit?
Battery and PCS are the two major components of home energy storage system, which is the most beneficial segment of home energy storage market. According to our calculation, in 2025, the new installed capacity of home energy storage will be 25.45GW/58.26GWh, corresponding to 58.26GWh of battery shipments and 25.45GW of PCS shipments.
It is expected that by 2025, the incremental market space for batteries will be 78.4 billion yuan, and the incremental market space for PCS will be 20.9 billion yuan. Therefore, the industry’s energy storage business accounted for a high proportion of large market share, channel layout, strong brand enterprises will benefit.
Post time: Mar-02-2024