Analysis of home power storage country in the world

The scale of home power storage and installation in Europe is constantly increasing. In 2021, the home power storage in Europe reached 2045MWh, an increase of 73% year on year. From 2015 to 21, the compound annual growth rate reached 63%, which is very fast. Germany is the largest driving force for the growth of home power storage in Europe.

In 2021, the scale of household storage and installation in Germany reached 1479MWh, accounting for 72% of European home power storage, followed by Italy (191MWh), Britain (81MWh), Spain (48MWh), France (35MWh), CR5 accounts for 90% in total. This article will analyze the home storage country in the world in detail.

Analysis of home power storage country in the world

Germany

In 2021, Germany added 1.48GWh of home power storage, an increase of 45%, accounting for 34% of the world; The total installed capacity was 3.92 GWh, an increase of 60.6%, accounting for 32% of the global total. In 2021, Germany’s optical reservoir permeability was 3.6%, ranking first in the world. Under the energy crisis, the price of electricity rose, stimulating the high demand for household storage. 

The average wholesale electricity price in Germany rose from 52.8 euros/MWh in January 2021 to a maximum of 206 euros/MWh in June 2022, an increase of 313%. Suppose home power storage is 5kw and allocation storage is 50% * 2h, that is, energy storage scale is 5kwh.

The battery has a cycle life of 7000 times and is charged and discharged once a day, so it will operate for about 20 years; The cost of home power storage is 0.45 euro/wh, the cost of household photovoltaic is 1.17 euro/W, and the comprehensive cost of household optical storage is 2.06 euro/W; The utilization hours are 1200h.

Under the self consumption mode, the income is divided into two parts:
● Self use electricity:

10kwh per day, about 3650kwh per year. Considering that the electricity price of German residents is 0.4 euro/kwh, the revenue from self use electricity increases year by year;

● On grid electricity:

Excluding self use electricity, the remaining part earns on grid income. The on grid electricity price is 0.06 euro/kwh. Due to the decline of power generation, the on grid income decreases year by year, with a yield of 22.55%. The yield will continue to increase when the self use electricity increases.

The German and state governments have introduced subsidies and tax relief policies to reduce the installation cost of household energy storage to support the development of household storage, including 30% subsidy for energy storage equipment in Thuringia, 500 euros subsidy for more than 3kwh in Bavaria, and more than 100 euros subsidy for every 1kwh increase.

The pattern of home power storage industry is relatively centralized. It is estimated that in Germany, the home power storage CR3 will exceed 50% in 2022, and the market share of local leading home power storage suppliers such as Sonnen (partial OEM shipment) and Senec is expected to further increase.

Italy, Britain and Austria

In addition to Germany, Italy, Britain and Austria, which are in the forefront of household storage and installation capacity, have steadily increased the scale of new household storage and installation capacity every year driven by electricity prices and policies.

By the end of 2021, the scale of household storage and installation in Britain reached 81MWh, with a year-on-year increase of 113%. Italy’s household storage and installation in Europe will be second only to Germany. In 2021, Italy’s household storage and installation will be 191MWh, with a year-on-year increase of 122%.

America

The cost of the energy storage system in the United States continues to decline, and policy support continues to increase. In addition to the regulatory reform of the federal and state governments, the energy storage system in the United States has developed rapidly. In 2021, the new installed capacity of energy storage in the United States was 3971MW/10880MWh, with a year-on-year growth rate of 341%.

The home power storage increased by 343MW/960MWh, accounting for 8.8% of the total newly installed energy storage capacity. It is believed that by 2025, the installed capacity of energy storage systems deployed in the American energy storage market will increase fivefold. Among them, the user side energy storage system continues to constitute the main part of this growth. 

The United States is the second largest market for home power storage, and California is the main contributor to home power storage. The demand side of household storage in the United States is strong. In 2021, the installed capacity of household storage will reach 468MWh, an increase of 110% at the same time. 

The growth rate in the past three years has remained above 26%. California is the major contributor to home power storage capacity in the United States, accounting for 57% in 2020. In 2021, the allocation rate of new household photovoltaic energy storage in the United States will be about 9%, with a large space for improvement. 

According to statistics, 70% of transmission lines and transformers in the United States have been in operation for more than 25 years, and 60% of circuit breakers have been in operation for more than 30 years. Obsolete power grid facilities face huge challenges to ensure power supply reliability. For severe weather and emergencies, the power outage in the United States lasts for a long time, exceeding 350 min in 2020.

At the same time, under the influence of the energy crisis, the electricity price of American residents is also rising. In April 2022, the electricity price of American residents is 14.77 cents/KWh, an increase of about 7%, an increase of 2%, and the electricity price is in a rising trend. The federal and state governments of the United States have continuously introduced policies to promote the development of home power storage.

For example, the California Self generation Incentive Plan provides a subsidy of $200/KWh for energy storage equipment less than 10KW. The federal government passed a bill to extend the ITC tax relief for ten years at the end of the 21st year, which fully benefits the development of PV+energy storage.

From the perspective of geographical distribution, California is the largest energy storage market in the United States due to aging natural gas, unstable power supply, and SGIP incentive policy support for self generation. It is dominated by the pre balance sheet market, and household storage demand is also rapidly starting. 

In 2021, California’s home power storage capacity was 207MW, an increase of 55%, accounting for about 10%.Data shows that Tesla, BYD and Enphrase accounted for 55%/13%/12% of the U.S. home power storage market in 2021, and Tesla took the first place with a market share of more than 50%.

The American market prefers local brands, while Chinese brands are difficult to enter at present, and most of them supply electric cells through OEM. It is expected that the United States will further increase its market size. In the future, Chinese brands may gradually enter the American market. In the long run, the home power storage industry may be fragmented.

Australia

In terms of policy support, Australia has introduced small-scale renewable energy plans and FiT subsidy policies to promote optical storage installation; In terms of lighting and installation conditions, Australia has sufficient lighting resources, high photovoltaic power generation efficiency, sparsely populated land, and villas, which are suitable for photovoltaic installation. The home energy storage system is highly economical. 

In 2021, Australia realizeed 206MW/494MWh home power storage capacity, with a year-on-year increase of 45% based on MWh. Major manufacturers include Tesla, Alpha ESS, Growtt, etc., and Tesla ranks first in terms of market share. According to Sunwiz, Tesla, Alpha ESS, Growtt, Sonnen and Solax ranked the top five in the market share of Australian domestic storage in Q3 in 2021.

China

The installed capacity of energy storage in China is growing at a high speed, mainly from centralized type. It has been growing at a high speed in recent two years. In 2020, the new installed capacity of energy storage reached 1.37GW/2.48GWh, a year-on-year increase of 153%/189%.

In 2021, the new installed capacity of energy storage reached 2.45GW/4.61GWh, a year-on-year increase of 79%/86%, of which the main contribution is from China’s centralized installed capacity of energy storage. China’s distributed energy storage is still in the early stage of development, and the economy is not high. 

The installed capacity of distributed energy storage was 188MW/333MWh,+11%/- 30% year-on-year, and the centralized energy storage will account for more than 90% in 2021. The electricity price in China is low, most of the houses are inconvenient to install photovoltaic roofs, and the home power storage configuration is not economical.

The residential electricity price in China is 0.56-0.62 RMB/kWh. In July 22, the spot price of the European Power Exchange exceeded 400 euros/MWh, equivalent to 3-5 RMB/kWh, 5-10 times the price in China. In addition, most of the houses in China are buildings, and the installation conditions of photovoltaic roofs are inferior to independent houses. On the whole, it is not economical to configure home power storage.

China’s energy storage inverters and batteries are mainly targeted at global customers, of which the global leader of energy storage inverters, SUNGROW, has shipped about 2.5GW globally, and the global leader of energy storage batteries, CATL, has shipped about 16.5GWh globally.

Those great manufacturers in the field of energy storage battery and energy storage inverter can be seen in the top 10 energy storage battery manufacturers in the world in 2022 and top 10 energy storage inverter manufacturers in detail. At the end of 2021, several provinces and cities in China successively introduced relevant policies to adjust the peak valley price difference to promote the development of user side energy storage. 

On July 29, 2021, the state issued a notice that the time of use tariff mechanism set the price difference between peak and valley prices at 4:1 or above, which will increase peak and valley prices and stimulate the development of energy storage on the user side. As of June 2022, more than 20 regions in China have issued mandatory storage plans. 

For example, Zhejiang has promoted the distributed photovoltaic scheme, which requires supporting energy storage facilities to be built at least 10% of the installed photovoltaic capacity. At present, Zaozhuang, Shandong Province, has the highest requirement for the scale of distributed mandatory storage, with the required proportion reaching 15% – 30% of the installed capacity.

Assume that the energy storage capacity is 10MW (based on the industrial and commercial model), and the storage capacity is 20% * 2h, that is, the storage capacity is 5MWh; The battery has a cycle life of 7000 times and is charged and discharged once a day, so it has been operating for about 20 years and the energy storage cost is 1.55 RMB/wh.

The income is: charging at the valley price of 0.25 RMB/kWh, discharging at the peak price of 0.95 RMB/kWh, that is, when the peak valley price difference reaches 0.7 RMB/kWh, the yield of energy storage reaches 9.16%. It is estimated that the peak valley price difference of more than 0.7 RMB/kWh has the economy of distribution and storage.

According to the time of use price statistics of industry and commerce, 8 provinces or municipalities in China, including Jiangsu, Guangdong, Zhejiang, Beijing and Shandong, can meet the demand, and China’s distributed energy storage space is open. In 2021, the installed capacity of energy storage in China reached 4.61 GWh, with a year-on-year growth of 86%, of which the installed capacity of home power storage will reach 0.0GW. 

It is expected that the installed capacity of energy storage will continue to grow at a high speed, of which the penetration rate of centralized energy storage will be higher, and the penetration rate of energy storage in distributed photovoltaic will also accelerate.

By 2025, the penetration rate of energy storage in distributed photovoltaic will reach 2.5%, and the installed capacity of distributed energy storage will reach 6.4GW/14.0GWh, of which the installed capacity of home power storage will reach 1.1GWh, with a year-on-year growth of 179%. The rapid growth of centralized energy storage in China is expected to accelerate home power storage.