Residential Energy Storage Market Research Report
The Global Residential Energy Storage Market size was worth US$ 893.01 million in 2023 and is estimated to reach US$ 2,762.08 million by 2031, growing at a CAGR of 15.16% during the forecast period (2024-2031).
Residential Energy Storage refers to systems that store electricity for home use, typically using batteries. These systems allow homeowners to store excess energy generated from sources like solar panels or the grid, providing backup power during outages and reducing reliance on traditional energy sources.
With the rising demand for renewable energy and energy independence, residential energy storage systems (RESS) are gaining popularity. They help lower electricity costs, enhance grid stability, and support sustainability efforts by maximizing the use of clean energy. Advances in battery technology, such as lithium-ion and solid-state batteries, are driving market growth, making energy storage more efficient, affordable, and accessible for homeowners worldwide.
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Market Growth Drivers:
The decline in costs of lithium-ion batteries
Lithium-ion batteries offer significant technical advantages. Unlike lead-acid batteries, which typically last 400-500 cycles, rechargeable Li-ion batteries can endure over 5,000 cycles on average. Their high energy efficiency and longer lifespan make them the preferred choice for various applications. Additionally, Li-ion technology is gaining popularity due to its superior performance and cost-effectiveness, with battery manufacturers actively working to lower production costs and improve accessibility.
The cost of lithium-ion batteries is expected to keep declining, with prices projected to reach approximately US$ 58/kWh by 2030. This price drop will make them more competitive with other battery types, driving their adoption across various industries. One of the key growth areas is energy storage systems (ESS) for residential and commercial applications, particularly when integrated with renewable energy sources like solar, wind, and hydro power.
The rising focus on sustainable energy
With a growing focus on sustainability, homeowners are increasingly seeking eco-friendly energy solutions, driving the expansion of the home solar energy storage market. As awareness of residential solar storage systems rises, more homeowners are exploring efficient and reliable storage options to maximize their use of solar energy for power generation.
Market Segments:
By Technology: Lithium-ion, Lead-acid
By Ownership: Customer-owned, Utility-owned, Third party-owned
By Connectivity: On-grid, Off-grid
By Operation: Standalone Systems, Solar & Storage
By Region the market is divided into North America, Latin America, Europe, Asia Pacific, Middle East and Africa
Competitive Landscape
- ABB Ltd.
- Samsung Sdi Co., Ltd.
- BYD Company Limited
- Eguana Technologies
- Schneider Electric
- Siemens AG
- LG Chem
- Tabuchi Electric
- SMA Solar Technology
- Eaton Corporation
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Regional Growth
The growing adoption of rooftop solar power in Europe
The rapid adoption of rooftop solar power has created a strong demand for residential energy storage in the region. In recent years, Germany’s home energy storage market has seen significant growth, supported by an incentive program offering a 30% investment subsidy for battery installations. As the country continues to transition its energy mix, the shift towards sustainable power solutions is becoming more evident.
Germany has introduced reforms to the Renewable Energy Law (EEG 2021), including an EEG fee exemption for owners of solar PV systems under 30 kW for self-consumption—an increase from the previous 10 kW limit. Since most residential solar systems exceed this range, this exemption is expected to boost the German residential battery market.
To qualify for the super incentive, PV and storage systems must be integrated with key energy efficiency improvements. If a system does not meet these requirements, homeowners can still benefit from the existing 10-year, 50% tax credit for small-scale solar installations. Additionally, the influx of affordable solar panels from China is making photovoltaic (PV) technology more cost-competitive, further driving the growth of the home energy storage sector in the region.
Key Development:
In May 2022, Mango Power launched its Mango Power M Series at Intersolar Munich 2022. The system, which utilizes a solar PV and a 10–20 kWh battery, is designed for both daily and emergency use. It supports single-phase and three-phase connections, with an 8-14 kW output capacity. The system includes various features such as built-in inverters, backup gateways, and EV chargers, and has been introduced in multiple variants for the European and U.S. markets.
In June 2022, Toyota entered the energy storage industry with the launch of its O-Uchi Kyuden System, a home battery solution. The system leverages Toyota’s electric vehicle battery technology, offering a 5.5 kWh rated output and an 8.7 kWh rated capacity for efficient home energy storage. When connected to a photovoltaic rooftop system, it allows homes to run continuously, day and night. Initially, Toyota plans to sell the storage solution in Japan.
