Why is global cooperation important in the residential battery market?

Global cooperation is an important feature of the residential battery market. The localized and distributed nature of residential battery demand makes it difficult for battery or other equipment manufacturers, most of which are based in Asia, to provide downstream services in new markets across the globe.

What percentage of residential solar systems have batteries?

Residential battery deployment is rising quickly. In 2023, over 70% of residential solar systems in Germany and Italy, as well as 20% in Australia and 13% across the US, had batteries attached.

Will energy storage capacity grow in 2022?

BNEF estimates that energy storage capacity worldwide needs to grow by a factor of 16.1 times from the end of 2022, to 720 gigawatts by 2030, to support a global target to triple renewables that is under discussion ahead of COP28.

How do virtual power plant business models aggregate residential batteries?

These virtual power plant business models aggregate residential batteries to participate in flexibility markets. Detailed examples of these business models, including the use of aggregated fleets of residential batteries for frequency response in the UK, Italy, and Australia, are featured in the report.

How many gigawatt-hours will a residential battery be installed in 2023?

Global cumulative residential battery capacity is expected to reach 34 gigawatt-hours by the end of 2023, of which 12 gigawatt-hours is to be installed in 2023 alone. Most consumers buy batteries for three distinct, but sometimes overlapping, reasons:

Will residential batteries reduce the need for grid upgrades?

Residential batteries are expected to reduce the need for expensive grid upgrades. In BNEF’s Net Zero Scenario, investment in required grid upgrades reaches $777 billion by 2030, nearly three times the figure spent updating grids in 2022.