As global energy demand increases and environmental protection becomes a
mainstream world issue, new energy markets The emergence of new energy
markets is an important part of the solution to human needs. As European
countries accelerate their energy restructuring, the domestic energy
storage market is growing rapidly. Currently, Europe is the world's
largest market for domestic energy storage.
There are three main customer-side electricity options in Europe.
1. complete grid purchase: no rooftop PV or energy storage system is installed, and electricity demand is sourced entirely from the grid.
2. only PV systems are installed, no energy storage
systems are installed: the proportion of self-generation and
self-consumption is only 20-35%, with excess electricity sold back to
the grid at midday when the PV is generating at high capacity, and some
electricity bought back from the grid at night when the PV is not
working.
3. Photovoltaic + energy storage": the proportion of self-generation is
increased to 60-90%, and the surplus electricity is sold back to the
grid at midday.
As European residential electricity prices rise and the cost of
photovoltaic storage falls, the economics of photovoltaic storage
packages are becoming increasingly apparent. The cost of purchasing
electricity in developed European countries such as Germany, Italy, the
UK, and Switzerland is high and continues to rise. In Germany, for
example, the cost of purchasing electricity for households has risen
from 28.7 cents/kWh in 2015 to 30.5 cents/kWh in 2019 and is expected to
continue to rise in the future. At the same time, the LCOE of PV and
PV+ storage is decreasing, and the economics of PV packages and
self-generation models are becoming more and more significant.
In addition, the PV+ storage model brings more flexibility and
facilitates the emergence of innovative business cases in the
photovoltaic storage sector. The combination of different devices and
virtual power plants (VPP) is bringing more value creation to the
domestic energy storage market.
Policy subsidies played an important driving role in the early stages
of the industry's development, but as PV technology continues to mature
and market orientation becomes clearer, European countries have weakened
PV subsidies and gradually shifted to the energy storage market,
driving the rapid development of the energy storage market. In the
future, with the further increase of PV penetration and PV distribution
and storage penetration, the European energy storage market has a bright
future. According to SolorPower Europe's forecast, by 2023, the
European According to SolorPower Europe's forecast, the new installed
capacity of the European domestic energy storage market will exceed 1GWh
by 2023.