3Q 2022

Analyst Insight: Residential Energy Storage Deployments Skyrocket

Energy Storage Forecast Database Insights

As energy storage systems’ (RESS) costs decrease, deployments in residences are skyrocketing. Utilities and other third parties are deploying behind-the-meter (BTM) energy storage, and linking existing RESS systems, to form virtual power plants (VPPs) capable of bidirectional distribution in times of peak electrical demand. Innovative power conservation and sharing enables cost savings to reach utilities and customers; lessens demand on traditional transmission and distribution (T&D) infrastructure; and reduces the need for additional costly or sometimes impossible construction. Increased home and grid efficiency can also aid national decarbonization goals, especially when combined with residential renewable energy generation.

As battery technology improves and distributed energy resource management (DERM) technologies permit greater system flexibility, deployments and use cases are expected to increase. Decreasing technology costs will additionally enable battery storage to become a standard for greenfield construction and residential refurbishment. Residential energy storage paired with renewable generation, such as rooftop PV, is a market segment encouraged by national legislative action that will define the grid’s future. 

This Guidehouse Analyst Insight covers the rapidly accelerating residential energy storage deployment market—including market inflection trends, market drivers and barriers, a regional overview, impact of the Inflation Reduction Act (IRA), and emerging bidirectional EV charging—before giving recommendations for stakeholders in the energy storage industry.

Pages 16
Tables | Charts | Figures 6
  • What are the latest market inflection trends for the residential energy storage market?
  • What are the main market drivers and barriers to residential energy storage adoption?
  • What is the outlook for the RESS market?
  • What are the leading countries by RESS global capacity?
  • Which RESS technologies are most popular by global capacity?
  • What is the impact of the IRA on the RESS market?
  • What are the leading RESS battery products and how are they differentiated?
  • How will bidirectional EV charging affect the RESS market?
  • What are some of the key recommendations for governments, policymakers, and market stakeholders?
  • Utilities and renewable energy providers
  • Energy retailers
  • EV companies
  • Smart appliance manufacturers
  • Renewable energy providers
  • Policy makers
  • Energy engineering, procurement, and construction (EPC) firms
  • Investor community

Introduction

Scope

Executive Summary

Market Inflection Trends

Market Drivers and Barriers

Market Forecast

Regional Market Overview

IRA Provisions, Leading Battery Products

Bidirectional EV Charging, Key Recommendations

Acronyms, Abbreviations, Contact

  • Top Countries by BTM ESS Capacity (MW), World Markets: 2Q22 
  • Residential ESS Annual Power Capacity Deployments by Technology, World Markets: 2021-2030 
  • Battery-Based RESS Annual Vendor Revenue by Region, World Markets: 2021-2030 
  • RESS Annual Power Capacity Deployments by Technology, World Markets: 2021-2030 
  • Market Drivers and Barriers
  • RESS: Leading Battery Products