Residential Solar Energy Storage Market

Global Residential Solar Energy Storage Market Size (2024 to 2029)

The global residential solar energy storage market is predicted to attain USD 123.58 billion by of 2029, up from USD 20.55 billion in 2023, with a CAGR of 43.16% from 2024 to 2029.

Energy storage can be defined as a technology that provides a source of energy when required without going back to conventional energy sources. These energy systems are efficient and can be used when needed. The market for solar energy and battery storage systems is growing at a rapid rate and is predicted to increase significantly during the foreseen period mainly due to the escalating call for electricity across the world. The growth of the residential solar energy storage market is further attributed to factors such as lower battery costs, regulatory support, financial incentives, and consumers' need for energy self-sufficiency. Various environmental problems such as worldwide warming and climate change are obvious that conventional energy damages the environment. The world has now recognized that clean energy is a possible solution to repair the damage caused by the use of conventional fuels. Solar energy appears to be the most viable solution to reduce greenhouse gas emissions. With the falling cost of tariffs and advanced technologies in solar panel systems, the solar energy industry has gained enormous recognition. In addition, governments around the world are promoting the production of alternative energy, such as solar energy, by providing subsidies. This has led to the expansion of the solar energy industry.

MARKET DRIVERS

The rising support coupled with financial incentives from the governments of various countries for renewable energy worldwide is propelling the growth of the residential solar energy storage market.

The escalating call for Li-Ion batteries and their decreasing cost will accelerate the residential energy storage industry. Lithium-ion-based energy storage systems accounted for an industry share of around 60% in 2021. Lithium-ion batteries offer various technological advantages, such as lead-acid batteries. Also, the increase in the adoption of lithium-ion batteries due to their technological advantage is the most energy-efficient rechargeable batteries available. In addition, the replacement of conventional batteries due to their technical and economic advantages has escalated the use of lithium-ion batteries worldwide. For example, starting in 2021, lithium-ion battery prices continually decline by around 22% in 2021 from 2019 levels. However, this sharp and sustained reduction in battery costs is predicted for Lithium-ion batteries to drive the residential energy storage industry. In addition, the escalating application of lithium-ion batteries in new industries such as renewable energy such as hydro, solar, wind, and associated energy storage systems (ESS), for residential and commercial applications during the foreseen period. A growing number of government initiatives, the development of smart infrastructure, and greater investment in the use of renewable energy in emerging countries will stimulate aggregate call.

Emerging battery storage opportunities stemming from national policies and government financial initiatives are aimed at boosting the residential energy storage industry. Many countries are adopting hybrid energy systems such as renewables plus storage to reduce their dependence on imported energy, move toward environmental goals, fill gaps in their product mix, and decarbonization targets, and improve the reliability and resilience of their systems. In addition, energy storage will benefit from general political mandates related to urbanization and quality of life goals in developing countries.

MARKET RESTRAINTS

High initial installation costs required for residential solar energy storage are primarily hampering the global market growth.

In addition, factors such as limited availability of suitable storage technologies, challenges in integrating storage systems with existing solar setups and concerns regarding battery lifespan and performance are impeding the growth of the global market. Variability in solar energy generation, limited awareness among consumers about storage options, difficulty in accessing financing for storage solutions, grid infrastructure limitations for distributed energy storage and competition from other renewable energy sources are further hindering the growth of the residential solar energy storage market.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Residential Solar Energy Storage Market Analysis By Power Rating

The 3-6 kW segment is predicted to have the largest industry share in 2026. The 3-6 kW industry provides backup power in the event of a grid failure. Countries are also using 3-6kW batteries to recharge electric vehicles, where photovoltaic solar panels supply power directly to electric vehicles without escalating energy bills.

Global Residential Solar Energy Storage Market Analysis By Technology

The lithium-ion segment is predicted to have the largest share of the global market in 2023 and is predicted to be the fastest-growing segment in the global market during the forecast period owing to the lowest cost of high-efficiency lithium-ion batteries. Additionally, environmental policies and regulations are also driving the expansion of the residential lithium-ion energy storage industry.

REGIONAL ANALYSIS

Asia-Pacific is estimated to be the biggest regional segment in the global market during the forecast period. Expansion in this region is driven primarily by countries such as China, Australia, and Japan, which are installing storage solutions for residential users. In recent years, this region has experienced rapid economic development along with the expansion of renewable energy and the call for energy self-sufficiency, which has increased the call for energy storage options.

Europe has dominated the residential energy storage industry due to its strong expansion and rapid adoption of rooftop solar. The residential energy storage industry in North America is predicted to be the second-largest region with countries like the United States, Mexico, and Canada for residential energy storage systems. The Asia-Pacific region is predicted to have the fastest-growing residential energy storage industry due to its growing call for renewable energy, rapid economic development, and growing call for self-sufficient energy.

The Middle East and Africa are predicted to create a moderate additional opportunity with the escalating use of renewables during the foreseen period. Regionally, the Asia-Pacific solar energy storage market dominates and is predicted to grow significantly over the foreseen period. Countries like China, South Korea, and India are making great efforts to develop their solar power capacity. The active interests of governments in reducing greenhouse gas emissions have led to the recognition of clean energy such as solar energy as a viable alternative. Escalating calls for solar energy and favorable government policies are predicted to guide the expansion of the solar energy storage industry.

The US solar energy storage industry has seen significant expansion over the years. The growing call for rooftop solar installations in the residential sector in the United States has had a positive impact on the solar energy storage industry. Off-grid solar power systems are installed on remote islands, particularly in disaster-prone areas of the United States. Consumer acceptance of the off-grid energy system and favourable government regulations for rooftop solar panel installation are contributing to the expansion of the solar energy storage industry in this area.

KEY PLAYERS IN THE GLOBAL RESIDENTIAL SOLAR ENERGY STORAGE MARKET

Companies playing a prominent role in the global residential solar energy storage market include BB Ltd. (Switzerland), LG Chem, Ltd. (South Korea), Samsung SDI Co., Ltd (South Korea), General Electric Company (U.S.), Tesla, Inc. (U.S.), AEG Power Solutions (Germany), eSolar Inc. (U.S.), Abengoa S.A. (Spain), BrightSource Energy, Inc. (U.S.), Acciona, S.A. (Spain), Evergreen Solar Inc. (U.S.), and Alpha Technologies (U.S.), and Others.

RECENT HAPPENINGS IN THE GLOBAL MARKET

• Jackson declared the introduction of a Compact Hybrid Energy Storage system for residential and commercial users to witness the advantages of solar energy more efficiently. The launch event was held in Chandigarh and brought together the best industry professionals and members of the Jackson management team.
• Panasonic India, the local branch of Japanese electronics firm Panasonic, declared that it launched its latest variety of energy storage solutions targeting the telecom tower industry. The Power Solution The recently launched compact business unit is called CBPS 8000.

DETAILED SEGMENTATION OF THE GLOBAL RESIDENTIAL SOLAR ENERGY STORAGE MARKET INCLUDED IN THIS REPORT

This research report on the global solar panel cleaning market has been segmented and sub-segmented based on power rating, connectivity, technology, ownership, operation, and region​​​​.

By Power Rating

• 3-6 kW
• 6-10 kW

By Connectivity

• On-grid
• Off-grid

By Technology

• Lead-Acid
• Lithium-Ion

By Ownership

• Customer
• Utility
• Third-Party

By Operation

• Standalone
• Solar

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa