Bonn, Germany, August 23, 2024 – EUPD Research forecasts that the residential Battery Energy Storage Systems (BESS) market across Europe will remain strong in 2024, even though growth may slow slightly in the continent’s largest markets.
The year 2024 is expected to bring mixed market dynamics, with some regions continuing to expand their photovoltaic (PV) and BESS installations, while others experience a deceleration. According to EUPD Research, the year-on-year (YoY) growth rate for residential storage systems (<20 kWh) is projected to slow down by the end of 2024. This can be attributed to reduced uncertainty in electricity supply following the war in Ukraine, which has particularly impacted Germany and Italy—the two largest residential storage markets in Europe.
Conversely, emerging BESS markets, such as Poland and Hungary are expected to experience notable growth, especially in Q4-2024. Such markets, driven by high residential PV deployment and the need for greater grid flexibility, are likely to take center stage in the European home storage sector by year-end. Additionally, markets such as Sweden and Czech Republic, which had a considerable residential BESS growth last year, are expected to show slower deployment rates. Lastly, while small systems will continue to be the primary drivers of the storage market in 2024, installations of larger storage systems are also on the rise across Europe.
Germany: In the first half of 2024 alone, approximately 270,000 home storage systems were installed in Germany, a figure comparable to the same period last year. However, one notable trend is the increased adoption of balcony storage systems, in line with the growing number of balcony PV installations. Despite this, EUPD Research anticipates a -5% YoY decline in residential BESS installations in Germany by the end of the year.
Rising electricity prices, favorable subsidy programs, and growing environmental awareness continue to positively influence the installation rates of PV and storage systems. In the first half of 2024, Europe saw around 10 GW of small PV systems (up to 20 kW) installed, indicating that the European market could reach a total of 22 GW by year-end. Alongside the PV market, the home storage market remains robust, although the YoY growth rate for both PV and BESS is beginning to slow. EUPD Research estimates that approximately 5 GWh of small BESS systems (up to 20 kWh) were installed in the first half of 2024, and another 6 GWh will be installed in the second half.
Looking ahead, the BESS market is poised for solid growth in the coming years, driven by increasing PV deployment and the need for greater grid flexibility and self-consumption. “The European residential storage market pulses are quite mixed in 2024.” said Markus Hoehner, EUPD Research’s Founder and CEO; “While some larger European markets are facing a small decline in their residential storage installations, other emerging ones are incentivizing storage for more self-consumption. In such a market environment our recommendation to all relevant stakeholders is to utilize as much data/market intelligence as possible to optimize their strategies; in other words opt for the right market(s), with the right technology, at the right time and with the right amount of investment” adds Markus Hoehner.
The dynamic European BESS market is led by several key players, and EUPD Research provides in-depth analysis through its “Electrical Energy Storage Report Europe,” which covers biannual trends and developments in residential BESS across major European markets.
