Residential energy storage system (ESS) market is anticipated to grow at an exponential CAGR of 23.8% during the forecast period. The cohesive government policies to promote less centralized, and more digitalized and sustainable energy system is a key factor driving the growth of the global residential ESS market. Solar Mandates coupled with storage is a major contributor to the growth of the global residential ESS market. For instance, California’s solar mandate has come into effect in early 2020 and requires all residential buildings (lower than three stories) to add enough PV to, on average, offset the annual average energy demand of the household. 

The policy offers the possibility to trade in obligatory PV “credits” through “storage” credits. Integrated building renovations and efficiency standards are further contributing to the market growth. For instance, Italy has combined a renovation stimulus with the option to deduct PV & storage by 110.0% from the annual tax bill (i.e. PV & storage comes for free once a house receives an efficiency renovation). Solar Power Europe’s first European Market Outlook on Residential Battery Storage 2020–2024 shows an emerging technology sector with high prospects that builds on a strong initial growth phase. Last year, 745 MWh from 96,000 systems were installed, representing a 57.0% annual growth rate. 

Tax depreciation for storage installations is anticipated to offer lucrative opportunities to the growth of the global residential ESS market. For instance, Italy offers the option to deduct 50.0% (i.e. Euro 4,000) of the base value from the annual tax incidence. The Netherlands allows businesses to depreciate the investment over three years.

Segmental Outlook

The global residential ESS market is segmented based on technology type. Based on technology type, the market is segmented into li-ion batteries, lead-acid batteries, and other technologies. Lithium-ion batteries held major market share based on technology. Batteries play a crucial part in the energy storage systems and are responsible for major portion of the total cost of system, especially used in residential energy storage systems.

Regional Outlook

The global residential ESS market is further segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the Rest of the World (the Middle East & Africa and Latin America). Among these, Europe is estimated to grow at a considerable CAGR during the forecast period. Battery storage for homes has become very popular in a number of European countries. In the leading markets, storage attachment to residential solar systems is over 90%. 

That has several motivations, which can be all grouped under two main drivers: emotions and economics. In June 2023, Canadian Solar unveils its first residential energy storage system EP Cube, a self-designed-and-developed product by Eternal planet, at Intersolar Europe 2023, marking another milestone in the European market. EP Cube can automate power supply in outages, ensuring high-power electrical appliances operate normally even if the grid goes down. With EP Cube, homeowners will no longer worry about shortages and instability of electricity supply. Such developments are further contributing to the regional market growth.

Global Residential ESS Market Growth, by Region 2023-2030

Asia-Pacific is Projected to Have Considerable Share in the Global Residential ESS Market

Asia-Pacific is anticipated to hold a considerable market share in the global residential ESS market. The three major countries in the renewable energy sector in the region include China, India, and Japan. The Asia- pacific growth is primarily driven by China and India’s solar panel industry. China has a potential share in solar PV installations as well as the production of solar PV panels. As per the International Energy Agency (IEA), the country has the largest installed solar power capacity of more than 205 GW in 2019, contributing more than 35.0% of the global installations. Besides, China is the biggest manufacturing country for solar PV equipment globally. The large-scale installation of solar panels is making considerable contribution to the demand for residential ESS. These devices enable consumer to utilize solar power even when the sun doesn’t shine, and in consequence, also use much more of their home-made clean electricity at the point of generation. Therefore, the large-scale adoption of solar panels across the region is a key factor driving the regional market.

Market Players Outlook

The major companies serving the global residential ESS market include Tesla Inc., Panasonic Holdings Corp., Sonnen GmbH, VARTA AG, and Enphase Energy Inc. among others. The market players are considerably contributing to the market growth by the adoption of various strategies, including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in June 2022, Toyota entered the energy storage market with the launch of the O-Uchi Kyuden System, a residential battery product. Toyota launched a rated output of 5.5 kWh and rated capacity of 8.7 kWh battery storage system, which uses the company’s electric vehicle battery technology. When connected to a photovoltaic rooftop system, the system can power a home day and night. Initially, the company aims to sell the storage system in Japan

The Report Covers

• Market value data analysis of 2022 and forecast to 2030.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global residential ESS market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.