Residential energy storage, primarily battery-based systems, refers to energy storage systems used in homes or residential environments. These systems aim to store electrical energy for daily needs or emergency use. They are often combined with renewable energy devices such as solar photovoltaic panels or wind turbines to achieve the conversion and storage of electrical energy. When needed, the system can convert the stored direct current (DC) into alternating current (AC) to provide a stable power supply to the home.
Residential energy storage systems are gradually becoming a market favorite due to their safety, reliability, high scalability, and ease of operation. They not only provide backup power to homes to cope with potential grid outages but also effectively balance energy supply and demand, improve self-sufficiency, and help reduce electricity bills. With their safety, convenience, and economic advantages, residential energy storage systems are becoming an important part of the market. With continuous technological advancements and gradual cost reductions, residential energy storage systems will undoubtedly become one of the most promising growth markets.
In recent years, the global installed capacity of residential energy storage has continued to climb, surging from 0.5 GWh in 2018 to 12 GWh in 2023, indicating a broad market prospect. Looking ahead, it is projected that by 2026, the global installed capacity of residential energy storage will further soar to 247.6 GWh, demonstrating its strong market appeal. The market prospects for residential energy storage systems are bright in the coming years, with a significant increase in new installed capacity.
Globally, Europe and the United States are experiencing strong growth in residential energy storage, accounting for approximately 70% of the total. This phenomenon is closely related to the high per capita electricity consumption and the continuous rise in electricity costs in these two regions. High per capita electricity consumption and rising electricity costs in Europe and the United States stimulate demand in their residential energy storage markets.
As a key engine of global economic growth, Asia's residential energy storage market is also showing a booming trend. Driven by the demand for renewable energy and low carbon, the Asian market for residential energy storage is growing rapidly. In the past few years, with increasing attention to renewable energy and energy conservation and emission reduction, the Asian residential energy storage market has continued to expand, and market demand is increasingly strong.