Fueled by government support, technological advancements, and a growing appetite for energy independence, storage companies are aggressively expanding into the global residential energy storage market. As rooftop solar incentives increase worldwide, firms are rolling out new products to capitalize on rising demand for home energy storage systems.
Tesla's Powerwall officially entered Taiwan in the fourth quarter of 2023, driving the recruitment of certified installation partners across the island. Multiple firms announced their certification during Taiwan's recent International Energy Week, positioning themselves alongside Tesla to tap into the burgeoning market.
Other players are moving in swiftly. Local and international companies, including Formosa Smart Energy, HD Renewable Energy, Tatung, and Delta Electronics, have joined the race. Formosa Smart Energy has laid plans to extend its reach into Taiwan and Japan, while HD Renewable Energy expects to unveil more home storage products by 2025.
In Taiwan, the storage market is still led by large-scale grid storage. However, with renewable installations increasing and distributed energy systems growing, demand for residential storage is gaining momentum. As government incentives for rooftop solar continue to expand, more households are installing storage systems to maximize the benefits of renewable energy.
For households, home storage paired with time-based electricity pricing offers significant cost savings. Although residential electricity rates have held steady amid recent freezes, prices are likely to rise in the future. With EV ownership climbing, home storage will also offer stable daily power to support EV charging. After years of early development, the residential storage market is expected to accelerate after 2025 as policies and regulations solidify.
Internationally, the home storage market is also picking up steam. In Japan, government support is encouraging households to adopt energy management systems, backed by supply chain subsidies.
The United States is boosting home storage adoption through the Inflation Reduction Act (IRA), with incentives driving installations across states like California, where grid strain and blackout risks are increasing. More households are investing in storage systems to enhance resilience and ensure a stable power supply.
According to QPO Energy, home storage growth is set to outpace both grid and commercial storage in the years ahead.
In Europe, the German Energy Storage Systems Association (BVES) projects that by the end of 2024, roughly 2 million households will have adopted residential storage. German media also reports that by 2024, the nation's home storage capacity will exceed that of pumped-storage hydropower.
Advancements in battery technology, particularly with lithium batteries becoming more affordable, are further enhancing the economic case for home storage. The International Energy Agency (IEA) forecasts that by 2030, the levelized cost of energy (LCOE) for solar-plus-storage systems will fall below that of coal and natural gas, making solar-plus-storage one of the most cost-effective power sources available.
