Residential energy storage systems to increase 3800% by 2025
Residential energy storage has been a growing market in certain areas for a number of years. To date, though, it has been a niche product for clean energy connoisseurs that utilities have mostly ignored. Momentum in this industry is now growing rapidly as utilities begin to recognize the value that residential energy storage systems (RESSs) can provide. RESSs hold enormous potential to dramatically alter the electricity industry in terms of the grid’s physical structure, business models, and utilities’ relationships with their customers.
There are numerous factors driving the residential energy storage market worldwide, including the growing residential solar PV industry, falling system costs, rising electricity prices, a push to improve resiliency, increasing awareness of home energy consumption, and the desire to use clean and locally generated electricity. Leading RESS markets around the world are driven by these factors, as well as by government subsidies, incentives, and evolving utility rate structures. Currently, the residential energy storage market is highly concentrated in select leading markets. In 2016, Australia, Germany, Japan, and the United States are expected to account for 81.4% of the global market. According to Navigant Research, global annual deployments of RESSs are expected to increase from 94.9 MW in 2016 to 3,773.3 MW in 2025.
This Navigant Research report explores trends in the residential energy storage industry. The report provides an analysis of utility involvement, business models, and how the industry will spread from early adopter markets. Global market forecasts for capacity and revenue in all major regions, including country-level forecasts for the top 10 country markets, extend through 2025. Although lithium ion (Li-ion) batteries are expected to account for the vast majority of RESS capacity during the forecast period, the report also provides forecasts for advanced lead-acid and flow batteries.