The Rise of the Global Energy Storage Industry: How Home Energy Storage Systems Are Key to the Energy Transition
With the growing global focus on sustainability and reducing carbon emissions, home energy storage systems are emerging as a key component of the energy transition. According to the International Energy Agency, global installed energy storage capacity will grow by 56 per cent over the next five years, reaching more than 270 GW by 2026. This trend not only reflects the importance of energy storage technology in the global energy mix, but also signals that home energy storage systems will play an even more critical role in achieving the goal of carbon neutrality.
A home energy storage system, or household energy storage system, is a device similar to a miniature energy storage plant that can recharge itself during low periods of electricity consumption for use during peak periods or power cuts. Such systems operate independently of the pressure of urban power supply, providing a more stable and reliable source of energy supply for households. Particularly when equipped with residential solar power generation facilities, smart home installations can significantly reduce peak power demand, further contributing to efficient energy management and conservation.
Currently, common types of home energy storage systems available in the market include hybrid home PV + storage systems, which generally consist of PV modules, lithium batteries, and hybrid inverters. The deployment of these systems not only realises the decarbonisation of household electricity consumption, but also unlocks more application scenarios for smart homes. In addition, with the intensive introduction of favourable national policies and the growing maturity of new energy storage business models, the initial investment cost of the system continues to decrease, making it affordable for more families to afford and install such systems.
From the perspective of the global market, the energy storage market in countries such as the United States, the United Kingdom, Australia and China has been developing rapidly, and the market size has been expanding. Data from the U.S. Energy Information Administration (EIA) shows that in the first three quarters of 2023, the scale of newly commissioned battery energy storage in the U.S. increased by 42% year-on-year, a figure that fully demonstrates the wide application and development potential of home energy storage systems globally.
In summary, home energy storage system is not only an effective way to achieve home energy self-sufficiency, but also one of the key technologies for the global energy transition and carbon neutrality goals. With technological advances and policy support, it is expected that home energy storage systems will be more widely used and developed globally in the future.
