Analysis of the Germany energy storage system market: household storage system continues to thrive in April 2023

Under the European energy crisis, electricity prices have soared, and the high economic efficiency of European household solar storage has been recognized by the market, and the demand for solar storage has started to explode. The household storage market is the core driving source for the growth of energy storage in Europe. Europe has a complete electricity market spot trading system. Residential electricity consumption is a rigid demand for Europe, and its gross profit margin is relatively high, attracting domestic energy storage companies to go overseas.

From the perspective of large storage, large storage installations in some overseas regions are expected to start on a large scale in 2023. Under the dual-carbon policies of various countries, overseas developed regions have entered the stage of new energy installed capacity replacing stock thermal power installed capacity. The growth of installed capacity has made the power system's demand for energy storage more urgent. At the same time as large-scale new energy installations, large-scale supporting energy storage peak regulation and frequency regulation are also required. It is worth mentioning that the cost of photovoltaic modules has begun to decline, and the cost of overseas energy storage projects has also decreased. The superimposed overseas peak-to-valley price difference is larger than that in China, and the income of overseas large-scale energy storage is relatively higher than that in China.

Household energy storage analysis: German household storage is still booming. According to the data released by ISEA&RWTH, the installed capacity of German household storage in 2022 will be 1839MWh, +49.9% year-on-year. In 2023 Q1, the installed capacity of household storage was 976MWh, +156.2% year-on-year; among them, the installed capacity of household storage in March was 343MWh, +118.5% year-on-year, +18.7% month-on-month.

The installed capacity in April was 218MWh, +62.7% year-on-year and -36.4% month-on-month. It should be pointed out that the website data will dynamically update the historical data, and the April data may still be revised up.

Figure: Monthly New Increment of Household Energy Storage in Germany (MWh)

European electricity prices are on a downward trend, but electricity prices are not expected to change the economics of household savings in Germany. According to HEPI data, electricity prices for newly signed residents in many European countries are still on a downward trend in April, among which Denmark has dropped by more than 30% month-on-month, and Germany and Spain have dropped by more than 5% month-on-month. In terms of absolute value, the UK and Ireland are still higher than 0.45 euros/kWh, and Germany, the Czech Republic, and Italy are still higher than 0.4 euros/kWh.

Although benefiting from sufficient natural gas reserves and warm winter weather, electricity prices for European residents in April 2023 have passed the stage high point, but electricity prices are still significantly higher than the same period in April 2021 before the Russia-Ukraine conflict. Among them, the Netherlands, Ireland, Italy 1. Residential electricity prices in the United Kingdom have increased by close to or more than 80%, in Austria, the Czech Republic, and Belgium by more than 50%, and in Germany by more than 20%.

Although the marginal impact of electricity prices on household energy storage demand is weakening, Germany's "higher electricity price level + incentive policy" is still relatively economical for residential energy storage. Relaxation is also good for household energy storage demand.

The current boom in household energy storage in Germany also proves that economics still constitute a direct driving force for household energy storage demand. We believe that the current release of German household energy storage demand may be the relief of supply shortages such as labor shortages and energy storage system shortages in the early stage. In the future, it will still maintain a relatively high level of prosperity due to "higher electricity price levels + incentive policies"

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