1Q 2019

Residential Energy Storage

Advanced Lead-Acid, Flow, and Li-Ion Batteries for Residential Applications: Global Capacity and Revenue Forecasts

As the behind-the-meter (BTM) distributed energy storage market continues to mature, several factors have propelled residential energy storage systems (RESSs) to the forefront of industry consciousness. These factors include technological progress, legislative and regulatory tailwinds, and new grid challenges associated with intermittent renewable generation. Despite the global RESS market gaining momentum with soaring growth rates in geographies like California, Hawaii, Germany, and Australia, long-standing uncertainties concerning feasible uses and cost-effectiveness remain.

RESSs can be a highly flexible and valuable resource, improving efficiencies for system owners and the power grid. While residential battery storage has grown in select geographies for several years, the market has been driven primarily by early adopters concerned with the environment or self-sufficiency more than economic self-interest. Many utilities see RESSs as an avenue to improve their services and relationships with customers at a time when new technologies are presenting a real risk of load defection. In recognizing these benefits, particularly the ability to reduce congestion on the network and limit the need for peak capacity resources, utilities around the world have launched programs to deploy RESSs.

This Navigant Research report analyzes global and regional drivers behind increased RESS deployments. The study examines utility involvement, cost declines, government incentives, and increased solar PV integration, as well as barriers to deployment. Capacity and revenue forecasts, broken out by region and battery technology, extend through 2028. The report also discusses emerging market participation models that enable continued RESS growth around the world.

Pages 40
Tables | Charts | Figures 30
  • What is driving the growth of residential energy storage?
  • How do the economics of residential energy storage vary by country and region?
  • What new markets are opening up for RESS technologies?
  • What new regulatory policies are increasing RESS opportunities?
  • How are market participation models and government policies improving the bankability of RESSs?
  • What is the long-term potential of RESSs in an evolving electric power industry?
  • How are utilities approaching residential energy storage in their service territories?
  • Residential energy storage vendors
  • Energy storage software and technology vendors
  • Utilities and electricity industry regulators
  • Housing cooperatives
  • Government agencies, policymakers, and non-governmental organizations
  • Finance community
  • Investor community

1. Executive Summary

1.1   Market Update

1.2   RESS Market Drivers

1.3   Market Forecasts

2. Market Issues

2.1   Drivers for Residential Energy Storage

2.1.1   Increasing Demand for Resiliency

2.1.2   Growing Use of Solar PV and Self-Consumption

2.1.2.1   Declining Battery Prices

2.1.3   Changing Rate Structures

2.1.4   Emerging RESS VPPs

2.1.5   Developing New Market Participation Models

2.2   Business Models and Financial Innovation

2.3   Barriers for RESS

2.3.1   Installed Cost

2.3.2   Regulatory Barriers

2.3.3   Lack of Awareness of RESS Benefits

3. Regional Trends

3.1   North America

3.1.1   California

3.1.2   Hawaii

3.1.3   Arizona

3.1.4   Massachusetts

3.2   Western Europe

3.2.1   Germany

3.2.2   Italy

3.2.3   UK

3.2.4   Ireland

3.3   Asia Pacific

3.3.1   Australia

3.3.2   Japan

4. Market Forecasts

4.1    Methodology and Assumptions

4.4.1   RESS Pricing

4.2   Forecasts by Region

4.3   Leading Countries for RESS

4.4   Forecasts by Technology

4.5   Revenue Forecasts

4.6   Conclusions and Recommendations

5. Acronym and Abbreviation List

6. Table of Contents

7. Table of Charts and Figures

8. Scope of Study, Sources and Methodology, Notes

Charts

  • RESS Annual Power Capacity Deployments by Country, Select Markets: 2019-2028
  • Average Installed Residential Solar PV Plus Energy Storage CAPEX Costs by Technology, World Markets: 2018-2027
  • Average RESS Installed Pricing Assumptions by Technology, World Markets: 2019 2028
  • RESS Annual Power Capacity Deployments by Region, World Markets: 2019-2028
  • RESS Annual Energy Capacity Deployments by Country, Select Markets: 2019-2028
  • RESS Annual Energy Capacity Deployments by Technology, World Markets:  2019-2028
  • RESS Annual Vendor Revenue by Region, World Markets: 2019-2028
  • RESS Annual Power Capacity Deployments by Country, Select Markets: 2019-2028
  • RESS Annual Energy Capacity Deployments by Region, World Markets: 2019-2028
  • RESS Annual Vendor Revenue by Country, Select Markets: 2019-2028
  • RESS Annual Vendor Revenue by Technology, World Markets: 2019-2028

Figures

  • Average Hours of Interrupted Service for US Electricity Customers: 2016-2017
  • Average Hours of Interrupted Service for US Electricity Customers by State: 2017
  • Sample TOU Pricing Breakdown, Ontario, Canada
  • The Coupling of Consumer and Utility Values via VPPs
  • Reduced Solar Exports Due to AGL’s RESS VPP: 2017-2018

  • Utility Residential Energy Storage Ownership Models
  • Lowest Residential Electricity Rates, Select US Markets: 2019
  • Highest Residential Electricity Rates, Select US Markets: 2019
  • Average Residential Electricity Rates, Select World Markets: 2019
  • Average RESS Installed Pricing Assumptions by Technology, World Markets: 2019-2028
  • Residential Distributed Solar PV Annual Installed Power Capacity by Region, World Markets: 2019-2028
  • RESS Annual Power Capacity Deployments by Region, World Markets: 2019-2028
  • RESS Annual Power Capacity Deployments by Region, World Markets: 2019-2028
  • RESS Annual Power Capacity Deployments by Country, Select Markets: 2019-2028
  • RESS Annual Energy Capacity Deployments by Region, World Markets: 2019-2028
  • RESS Annual Energy Capacity Deployments by Country, Select Markets: 2019-2028
  • RESS Annual Vendor Revenue by Region, World Markets: 2019-2028
  • RESS Annual Vendor Revenue by Country, Select Markets: 2019-2028
  • RESS Annual Power Capacity Deployment by Technology, World Markets: 2019-2028
  • RESS Annual Energy Capacity Deployment by Technology, World Markets: 2019-2028
  • RESS Annual Vendor Revenue by Technology, World Markets: 2019-2028
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