The following article is from Energy Storage Watch（WeChat ID: EnergyStorage001）
Translation：LEMAX New Energy
Latest Report: European Household Energy Storage Data Review and Prospects (2021-2025)
On 24 November, the European Photovoltaic Industry Association released its latest Market Outlook for Household Battery Storage in Europe 2021-2025.
From the data disclosed in the report, the growth trend of household battery storage in Europe is self-evident. According to the report, about 140,000 domestic battery systems were installed in Europe in 2020, with 1,072 megawatt-hours of installed capacity in a single year, up 44 percent year-on-year.
This includes two milestones — the European BESS market added 100,000 systems in a year for the first time and reached an annual GWh size for the first time. By the end of 2020, the total European household battery storage market grew by 54%, with installed capacity exceeding 3GWh, a 14-fold increase in total storage capacity compared to five years ago.
Despite the significant growth, we find that the market is mainly concentrated in several European countries. For example, Germany alone accounted for 70% of the new installed energy storage, followed by Italy, the United Kingdom, Austria and Switzerland. The market share of these five markets reached 93%, higher than the previous year, showing a highly concentrated pattern.
Germany is a strong country in European residential solar photovoltaic and residential battery energy storage systems. Due to the excellent performance of the domestic photovoltaic market in 2020 and the high allocation rate with battery energy storage, the BESS market increased significantly, reaching 749MWh, a year-on-year growth of 51%.
In Italy, the introduction of strong financial incentives for solar and energy storage, in addition to existing support programmes, has resulted in a market growth rate of 44% per year to 94MWh installed capacity. Different market conditions allowed the remaining top three countries to achieve double-digit growth — including consumer-friendly electricity prices in the UK and government incentive and supportive policy frameworks in Austria and Switzerland.
The same trend is seen in the market outlook for the next five years, with the top five countries taking 88 per cent of the market share, according to the report. SPE expects domestic energy storage installations in Europe to reach 1.37GWh in 2021, 1.67GWh in 2022, 1.96GWh in 2023 and 2.21GWh in 2024.
In 2025, it will grow to 2.51GWh, 134% higher than 2020, and the cumulative market capacity is expected to increase more than four times to 12.8 GWh. In all of those years, the annual growth rate will remain above 20 percent.
Under the best scenario, European households could produce 14.6 GWh of battery capacity for consumers by the end of 2025, compared with 10.2 GWh under low expectations.
The report delves into the specific characteristics of the top four European markets, which continue to provide the strongest driving force for residential battery storage development across the region.
In its five-year analysis, Germany continues to be the undisputed leader in residential energy storage, followed by Italy.