In 2021, the largest residential battery energy storage market in Europe was Germany, Italy, Austria, and Britain. These four countries have deployed a total of 1.9GWh residential battery energy storage systems, accounting for 84%of 2.3GWh deployed in Europe in 2021.
Although these four major residential battery energy storage markets have developed for a long time, they can observe changes in market share, partly because the European residential battery energy storage market also has some new participants. First, Austria surpassed the third place in Europe in 2021. Secondly, the overall share of the four major European battery battery energy storage markets decreased from 90%in 2020 to 84%in 2021. This is due to the development of other markets such as Sweden, Spain, Poland, and Switzerland. High -electricity prices caused by the expanding residential solar power market and energy crisis have jointly promoted the development of the residential energy storage market in these countries. It is estimated that the battery storage market in the four major European residential residential houses in 2023 will still be these four countries, but Britain will regain the third market position.
It is estimated that in 2026, the size of the European residential battery energy storage market will increase significantly to 7.3GWh (compared with 2021 will increase by 220%). Germany and Italy are expected to ranks among the top two in Europe's largest residential battery energy storage markets, but Poland and Sweden are expected to replace Austria and Britain, ranking third and fourth. It is expected that by 2026, the total market share of these four countries will drop to 64%.
Among them, Germany once again became the largest residential battery energy market in Europe. The country deployed a 1354MWH residential battery energy storage system in 2021, an increase of 81%compared with the 749MWH deployed in 2020. Germany continued to maintain a strong market leadership in 2021, accounting for 59%of the European residential battery energy storage market, but its share decreased by 9 percentage points compared with 68%last year. The European Photovoltaic Industry Association estimates that Germany deployed nearly 150,000 residential battery energy storage systems in 2021. This European second largest residential battery energy storage market is more than four times higher than that of Italy.
This impressive development even slightly surpassed the prediction of the European Photovoltaic Industry Association in last year. This scene assumes that the German market will reach 1240MWh in 2021. As a mature residential solar energy and residential battery energy storage market, 2021 is a year when the German wholesale market has begun to rise. Although Germany's retail electricity price has been the highest in Europe for many years, as the price is concerned about further rise, more families have begun to deploy residential solar and residential battery energy storage systems. With the acceleration of the Russian and Ukraine issues, this development has soared. Essence
Since 2000, Germany has been the largest solar market in Europe. The solar deployment boom in Germany began in April 2000. At that time, the country implemented the first solar power generation system on -grid electricity price plan through the German Renewable Energy Law (EEG) and experienced the first stage of strong growth. It continued until 2012 Essence Under the implementation of the photovoltaic network (FIT) plan, German families can sell the electricity generated by its solar power facilities to the power grid at a very high price within 20 years. The German government's significant reduction in incentive measures and supervision reforms also launched a transition to self -consumption. At that time, the reduction in solar power generation costs made the investment in the technology again attractive.
In the past 20 years, solar power generation of German home users has decreased. In 2009, it was about 0.43 euros/kWh, about 0.24 euros/kWh in 2012, and about 0.07 euros/kWh at the end of 2021. Over time, the price of solar power generation and the decrease in the cost of solar power generation components have generally expanded the gap with German retail electricity prices. As self -consumption becomes more and more attractive, the need for deployment of a residential battery energy storage system has emerged. Due to the expensive battery price 10 years ago, the German government launched a subsidy plan in 2013 to provide subsidies for the installation of solar power facilities below 30kW. The German Development Bank (KFW) provided low -interest loans and gifts from 2013 to 2015. After that, the plan was extended for another three years, providing incentive measures for several German battery energy storage system startups, and provided the installer with providing installer provided by the installer. Learn the opportunity to deploy solar power generation facilities and battery energy storage systems.
Although several German states have also provided incentive measures for the installation of battery energy storage systems in recent years, the budget of these plans has now exhausted. At present, there are still German power generation facilities, energy storage systems, and other renewable German Development Bank Loan Programs (KFW270), but their subsidy rate is 3.58%, similar to commercial loans.
In 2020, the premium rate of the German residential battery energy storage system dropped by more than 70%, and by the end of 2021, it fell to 0.0693 euros/kWh. This situation occurs, on the one hand, due to the high number of deployment, and on the other hand, the average electric price in 2021 is 0.3214 euros/kWh. This provides attractive business cases for the application of residential solar power generation facilities and battery energy storage systems, and explains the 81%growth rate of the house battery energy storage system, although the battery price has risen due to supply chain problems. The business cases in 2022 remained similar growth, but the retail price of the retail price exceeded the level of 0.40 euros/kWh in the second half of the year, which made the investment of residential solar power generation facilities and battery energy storage systems more attractive. By 2022, it is estimated that it will reach 1.5GWh, an increase of 14%. If more batteries and installation staff are sufficient, this number will be higher.
As of July 30, 2022, the 2023 version of the German Renewable Energy Law (EEG) released by Germany took effect to increase the electricity price of residential solar energy from 0.0624 Euros/KWH in July 2022 to 0.086 euros/kwh. The trajectory of the monthly decline in electricity prices is now postponed until 2024. As the German government is seeking increasing the amount of renewable energy power generation during the current energy crisis, it is decided to export all solar power to the family to provide a subsidy of 0.048 euros/kWh to increase its electricity price to 0.134 euros/kWh. Users use the available roof space to the greatest extent, allowing two independent residential solar power generation facilities to install on the roof of the same house, one for self -consumption, and the other for providing electricity for the power grid.
The development prospects of the German residential battery energy storage market are very bright. Energy crisis has made the Germans have never worried about energy security issues for decades, which has been put on the agenda, and prompts consumers to have a major psychological change in energy autonomous production and consumption, as well as a major psychological transformation in the way home users have adopted energy.
In the next few years, the German residential battery energy storage market will continue to grow. This is mainly due to the development of the solar industry of the residential house. The installed capacity of the solar power facilities deployed in Germany will increase from approximately 1.8GW in 2022 to about 2.2GW in 2024. Essence According to the European Photovoltaic Industry Association estimates, by 2026, the supporting deployment rate of the battery energy storage system will increase to 90%, which will basically become the standard part of Germany's new solar power generation facilities. However, due to the supply chain problem and the huge demand for batteries in the automotive industry, many users cannot deploy the residential battery energy storage system in the short -term within the short term.
Overall, the European Photovoltaic Industry Association predicts that the scale of residential battery energy storage market in Germany will increase by 14%to 1.5GWh in 2022. Its growth rate is less than 2021: First, the shortage of installation personnel limited the growth of the German residential solar market. Second, the shortage of battery can be used.
The situation in 2023 will be similar. Although the bottleneck in supply is expected to continue, the government's energy price limit is expected to ensure the increase in energy expenditure to a certain extent, but the momentum of cleaning and safe power supply will be maintained, especially no one knows that this energy crisis will be about How long does it last. According to the prediction of the European Photovoltaic Industry Association, the energy storage capacity of the residential battery energy storage system deployed in 2023 is 1.8GWh, 1.9GWh in 2024, 2.2GWh in 2025, and 2.7GWh in 2026. However, if Germany is facing an intensified energy crisis in the winter of 2023, the power demand for residential solar energy and energy storage systems will become greater.
