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Alicia Cai's picture
Alicia Cai
Market Research Consultant Tecloman

An enthusiastic energy storage professional with 5 years of experience in renewable energy research and consulting at the company, non-profit, and university. I am currently working at Tecloman...

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  • May 4, 2021 4:09 pm GMTMay 4, 2021 3:12 pm GMT
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Drivers of Growth in the United States and Europe Residential Energy Storage Market

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Source: www.linkedin.com

What are the factors driving the market growth of energy storage systems in Europe vs. the United States? What do you think are the similarities and differences? Please share your thoughts and comments on this article I wrote for Tecloman!

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  • Drivers of Growth in the United States and Europe Residential Energy Storage Market
  • ENERGY STORAGE BETWEEN NATIONS Entry #1: Why are America's energy storage projections far more optimistic than Canada's?

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Matt Chester's picture
Matt Chester on May 4, 2021

A 2020 survey found that although Californians were generally supportive of renewable electricity policies, they lacked basic consumer knowledge on alternatives to fossil-fuel-burning appliances. By comparison, studies have shown the residential BESS market in Europe is largely driven by consumers’ high environmental awareness. 

I also wonder if there's a bit of a chicken and egg there-- are Europeans more likely to be aware of the electric alternatives because they are more readily available than they are in CA and the rest of the U.S.? Or do you think it really is about education and if people knew then the numbers would flip state-side? 

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Alicia Cai on May 5, 2021

Well said, Matt! I do agree that it is a bit of a chicken and egg here. I would say it is a mixture of availability and economical incentives. Coal generation has been entirely replaced by renewable energy in Europe since the early 2000s. The high electricity price has really driven the customers to learn more about the electric alternatives. Whereas in the U.S., low electricity and gas price haven't served as an incentive for the consumers to explore renewables. 

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Jim Stack's picture
Jim Stack on May 5, 2021

The residential storage growth is being driven by many factors. One is the outages that could be avoided if you have storage. Also the high rates for On Peak hours and the demand charges. In FACT many people will want to go 100% Off GRID as the price of storage keeps going down. Storage and Solar go together very well.  

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Alicia Cai's picture
Alicia Cai on May 6, 2021

Thank you for your insights, Jim! The time-of-use rates have been widespread in the U.S., but still have room for growth in some states. Net metering policies can also potentially discourage customers to add batteries to their PV systems. You are absolutely right. The off-grid lifestyle has indeed gained a lot of traction in recent years in North America.

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