What is home energy storage and its development?
- The core components of home energy storage
- Home energy storage product types
- Home energy storage technology route
- Demand analysis of home energy storage
- Home energy storage demand volume
- Residential energy storage industry chain pattern
The household sector is an important part of the photovoltaic market. From the perspective of development stage, the penetration rate of some household photovoltaics is already high. For further understanding, you can have a look at our latest list on top 10 photovoltaic cell manufacturers in China.
The development model of home energy storage is changing from subsidy-driven, full access to the Internet to its own economy-driven, spontaneous self-use, and the demand for supporting energy storage is gradually emerging.
The core components of home energy storage
The core of the household solar storage system is photovoltaic + battery + energy storage inverter. Home energy storage and household photovoltaics are combined to form a household optical storage system. The optical storage system mainly includes cells, energy storage inverters (bidirectional converters), and component systems.
A typical system is generally 5KW (component + inverter) supporting 10kWh (energy storage battery) or 10kW + 10kWh, of which the battery is the core of the energy storage system, accounting for about 45-50% of the cost. The energy storage converter can control charging and discharging, and convert AC to DC, and the cost accounts for about 10-15%.
The module system, that is, the photovoltaic system, is used for solar power generation, and the cost accounts for about 20-25%. The installation cost will rise from 10,000 RMB in 2021 to about 20,000 RMB, accounting for 15-20%.
Home energy storage product types
home energy storage system products include all-in-one and split.
The home-type photovoltaic energy storage and inverter integrated machine is an integrated system with photovoltaic inverter, battery and controller placed inside. The working status can be displayed quickly and intuitively through the touch screen, the parameters can be modified and various working modes can be used, which is convenient to use. Generally, there are three working modes: solar energy priority mode, AC (mains) priority mode, and SE priority mode (off-peak power consumption mode).
Split type (inverter and battery system)
The battery of the household split machine is installed separately from the inverter, and the user can match the home energy storage inverter according to their own needs. In addition, a switching power supply or an inverter can also be used as a backup power supply.
Generally, there are four types of hybrid home photovoltaic + energy storage systems, coupled home photovoltaic + energy storage systems, off-grid home photovoltaic + energy storage systems, and photovoltaic energy storage energy management systems.
Home energy storage technology route
The mainstream technology route of home energy storage is lithium iron phosphate, and sodium ion and lithium iron manganese are new paths in the future.
The technical route of battery energy storage system includes lithium ion, lead battery, flow battery, etc. At present, lithium iron phosphate batteries are more in line with the design requirements of energy storage batteries than ternary lithium batteries due to their high safety and long cycle life.
Lithium iron phosphate batteries are the mainstream development route of energy storage batteries, and Tesla energy storage batteries are gradually shifting from the ternary route to the iron-lithium route. In addition, some companies such as CATL, Paineng, etc. have been conducting research and development and testing of sodium-ion and lithium iron manganese batteries. In the future, the technical route of energy storage batteries is expected to be further improved.
Demand analysis of home energy storage
Due to the maturity of energy storage technology and falling costs, energy storage will begin to grow rapidly in 2021. In 2022, due to the rising energy costs and electricity prices in Europe, residential electricity costs are high and power supply stability is poor. The high growth of household photovoltaics has brought about an unexpected outbreak of the home energy storage market.
home energy storage has entered a new stage of explosion. In 2021, the world’s newly installed home energy storage capacity will be 1.9GW/4.4GWh, an increase of 53%/56%, accounting for about 20%, and the world’s home energy storage is booming.
Under the energy crisis, electricity costs continue to rise. In recent years, electricity prices in European and American countries have been rising year by year, the cost of natural gas has soared, and the cost of electricity prices has risen rapidly in the short term.
The average spot market price in Europe has risen from about 50 euros/MWh at the end of 2019 to a maximum of more than 300 euros/MWh, and the electricity prices of European countries in May 2022 will increase by 100-330% compared with the beginning of 2021.
According to forecasts, basic energy prices in European economies such as France, Germany, Belgium and the Netherlands will remain high at around 150-170 EUR/MWh throughout 2022.
The per capita electricity consumption of Canada, the United States, South Korea and other countries far exceeds that of China. Among them, the United States, Germany, and Australia, the main home energy storage countries, will consume 12,235/9,857/6,771KWh of electricity per capita in 2020, far exceeding the per capita consumption of 5,297KWh in China. As electricity prices continue to rise, the demand for self-generated renewable energy and energy storage is growing rapidly.
Home energy storage demand volume
The demand for home energy storage is growing rapidly, with a year-on-year increase of 56% in 2021. According to data, the world’s installed energy storage capacity in 2021 will be about 10GW/22GWh, a year-on-year increase of 84%/105%. Among them, the installed capacity of distributed energy storage is about 2.5GW/5.6GWh, a year-on-year increase of 45%/40%.
The installed capacity of home energy storage in distributed energy storage is about 1.9GW/4.4GWh, a year-on-year increase of about 53%/56%. The world’s residential energy storage is booming. The main driving factors come from two aspects, one is the continuous increase in policy support, and the other is the economic drive of high returns.
Residential energy storage industry chain pattern
The core of home energy storage is energy storage battery and energy storage inverter. The barriers lie in the adaptation of battery and energy storage inverter at the production end and the brand channel of the terminal. The core competition for profitability lies in energy storage products and market structure.
The Chinese manufacturers of energy storage batteries lead the world in shipments, and the shipments of CATL are the first in the world. According to estimates, the world’s energy storage battery shipments in 2021 will be 59.9GWh. Among them, CATL ranks first as the largest battery cell supplier, with a shipment volume of 16.7GWh, accounting for 27.9%.
As a leader in home energy storage, Paine Energy has shipped 1.5GWh, accounting for 2.6%. Experts predict that world shipments will be 114.9GWh in 2022, an increase of 91.9%. Among them, CATL shipped 45.0GWh, an increase of 169.5%; Paine Technology shipped 3.5GWh, an increase of 127.3%.
home energy storage suppliers have obvious geographical distribution characteristics. Tesla mainly supplies the US market, and Paine Energy mainly supplies the European market.
According to the data, the TOP3 home energy storage suppliers in 2021 are Tesla, Paineng and BYD, accounting for 18%/14%/11% respectively. Among them, the largest supplier in the German market is BYD, accounting for 26%, followed by local integrators such as Senec and E3/DC.
The Italian market has the highest share of pie energy, at 23%. The US market is dominated by Tesla, accounting for 55%. The Japanese market mostly supplies local brands.