European home battery market growing fast
A European study conducted by SolarPower Europe found that the European home battery market grew by 107% in 2021 compared to 2020. This has resulted in the installation of 650,000 home batteries with a cumulative capacity of 5.4 GWh. The rise of home battery is partly due to the growth of the European solar market, according to the researchers. Indeed, the average installation rate of solar panels combined with a home battery has grown from 23% in 2020 to 27% in 2021.
Germany is European leader
The growth of the European home battery market is mainly due to a handful of leading countries in Europe. The European leader in this market segment is Germany. Driven by high electricity prices and a strong connection to solar PV installations, 1.3 GWh of home batteries were installed in Germany. Italy, second in the list of European home storage markets, was the biggest surprise in 2021. The Italian market shot up to 321 MWh of installed capacity per year, up 240% from 2020. This is thanks to an incentive scheme with very advantageous terms for the purchase of home batteries. In Austria, the third largest European market in 2021, the discontinuation of subsidy schemes did not reduce market growth, which was ultimately driven by a strong increase in the residential PV segment. Austria tripled its home battery market, reaching a total capacity of 132 MWh and, by a small margin, surpassing the United Kingdom, which now ranks fourth with 128 MWh of installed capacity.
Further growth expected in 2022
The political and economic landscape in 2022 is characterized by even higher electricity prices than in 2021 and major concerns about the energy security of a war in Europe. This has further improved the business case for even home storage. The researchers expect the residential battery market to maintain a very high growth trajectory: after reaching 1 GWh in 2020 and 2.3 GWh in 2021, expectations from the Medium Scenario are that 3.9 GWh will be installed in 2022, up 71% from the previous year. During 2022, the remarkable limit of 1 million homes with solar & storage has been crossed.
European energy storage target needed
For growth to continue, the study calls for, among other things, developing a European target for energy storage, creating incentives whereby collective and self-generated energy also leads to joint and own consumption, and accelerating regulations for demand-driven flexiblity.
Download European Market Outlook For Residential Battery Storage 2022
