Major Increase in Residential Energy Storage Predicted
Residential Energy Storage Takes Off
A new report from Navigant Research examines trends in the residential energy storage industry, providing an analysis of utility involvement, business models, and a projected growth path, with global market forecasts for capacity and revenue in major regions, through 2025.
Momentum in the residential energy storage industry is growing rapidly as utilities begin to recognize the value residential energy storage systems (RESSs) can provide. The growing popularity of these systems—driven by a growing residential solar PV industry, falling systems costs, rising electricity prices, and a push to improve resiliency—holds enormous potential to dramatically alter the electricity industry in terms of the grid’s physical structure, business models, and utility-customer relationships.
“While the economics of RESSs to save customers money only pencil out in certain markets, the involvement of utilities in this space opens significant new opportunities for market growth,” says Alex Eller, research analyst with Navigant Research. “Residential storage offers numerous benefits for utilities, perhaps most notably the ability to reduce congestion on the network and limit the need for new peak capacity resources.”
The current residential energy storage market is highly concentrated in select leading markets, including Australia, Germany, Japan, and the United States, which combined are expected to account for 81.4 percent of the market. In some cases, according to the report, leading RESS markets are also propelled by government subsidies, incentives, and evolving utility rate structures.
The report, Residential Energy Storage, 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. An Executive Summary of the report is available for free download on the Navigant Research website.
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