Residential Solar Energy Storage Market

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

The size of the global residential solar energy storage market was worth USD 20.54 billion in 2023. The global market is anticipated to grow at a CAGR of 43.16% from 2024 to 2029 and be worth USD 176.85 billion by 2029 from USD 29.41 billion in 2024. 

Current Scenario of the Global Residential Solar Energy Storage Market

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 increasing number of electric vehicles worldwide is one of the major factors helping the residential solar energy storage market grow.

Solar energy might become the backup power to our homes in the future. The future is all set to adopt new sources for power backup, which are renewable and cost-effective. The growing number of solar power charging stations for EVs is likely to fuel the need to increase the storage capacity. Solar energy and EVs have some special benefits in reducing environmental pollution. The rising support from the US Department of Energy Solar Energy Technology Office is stabilizing the work on achieving clean energy goals with the combination of solar energy and EVs.

It is a known fact that future charging stations will be completely powered by solar energy. The solar energy storage helps in delivering the power when there is no sunlight. Therefore, there is a high need to install energy storage capacities in residential areas that further propel the market’s growth rate. Growing awareness of the use of energy efficiency and conversation about solar energy among people living in urban areas are greatly influencing the growth rate of the market. People living in urban areas give high importance to new technologies to conserve energy in respective ways. The installation of charging stations for electric vehicles is one more factor in the growing demand for solar energy storage in residential areas.

MARKET RESTRAINTS

The high cost of the installation of residential solar energy storage is likely to hamper the growth rate of the market.

It takes a long time to manufacture the solar energy storage system with the integration of batteries and control equipment, which implies a high cost for the final product. It is a great deal to find a huge space to install the equipment to supply the power to a house permanently. Difficulty in finding a huge space for only installation in this modern era certainly degrades the growth rate of the market.

Though the use of solar energy has the benefits in lowering the carbon emissions, but the major constraints come with the scaling up solar energy storage. The scarcity of the materials to manufacture the equipment due to supply chain disruptions can solely to limit the growth rate of the residential solar energy storage market.

MARKET OPPORTUNITIES

Focusing on promoting the benefits of solar energy in residential areas and combating the high usage of fossil fuels that simultaneously lowers environmental pollution is lucrative to showcase the growth rate of the residential solar energy storage market. The replacement of fuel-based energy sources with solar energy can help mitigate the harsh climatic conditions that eventually reduce the release of nitrogen oxides and sulfur dioxide. The use of solar energy-generated power is completely new and overcomes all the challenges with the traditional source of energy, which is gearing up to create huge opportunities for the market to grow in the coming years. Soaring electricity prices due to a shortage of fuel are introducing the scope of adopting residential solar energy storage.

MARKET CHALLENGES

Unpredictable weather conditions may be a big challenging factor for the expansion of the residential solar energy storage in various regions. Bad weather conditions may reduce the productivity that may impede the growth rate of the market. The storage of solar energy may vary according to the seasonal changes where the need to have the backup options is highly important during these times.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Residential Solar Energy Storage Market Analysis By Power Rating

The 3-6kW segment has the dominant share of the market. The design of residential solar energy storage is acquiring huge responses from users as it is flexible and cost-effective in reducing electricity bills. The increasing number of residential buildings and the growing popularity of installing solar grids according to the new design are increasing the market’s growth rate. The 6-10kW segment is gaining huge traction over the growth rate of the market.

Global Residential Solar Energy Storage Market Analysis By Connectivity

Over the past couple of years, on-grid connectivity has had huge growth opportunities. On-grid solar energy is highly efficient in sending AC electricity to residential areas. The solar panels installed receive sunlight that converts into power in the solar system set up that is directly connected to the grid. The power that is converted from sunlight is then passed to the inverter to transform DC electricity into AC electricity. This AC electricity is then passed to the buildings.

Off-grid connectivity is also deemed to have a lucrative growth rate during the forecast period. Off-grid connectivity is not directly connected to the utility grid like on-grid, whereas the generated electricity is stored in solar batteries and runs independently from the power grid. People living in urban areas encourage off-gris connectivity due to the space constraints that are ascribed to bolstering the market’s growth rate during the forecast period.

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 the fastest-growing segment 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.

Global Residential Solar Energy Storage Market Analysis By Ownership

The customer ownership segment is gaining huge traction over the residential solar energy storage market share. The increasing popularity of using solar energy storage systems among consumers, especially in developed and emerging countries, is inclined to raise the demand to own energy storage systems that are specially designed for domestic areas. The utility ownership segment is expected to have a prominent growth rate in the coming years.

Global Residential Solar Energy Storage Market Analysis By Operation

The solar operation segment will eventually have huge growth opportunities in the residential solar energy storage market. The standalone operation segment is likely to be very popular in the coming years. The standalone operation has a unique value in storing solar energy with the increasing demand in the residential areas in urban cities.

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 expanded significantly over the years. The growing demand for rooftop solar installations in the residential sector has had a positive impact on the 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 favorable government regulations for rooftop solar panel installation is 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 residential solar energy storage 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