Why are European household energy storage stock levels soaring in 2022?

In the realm of inventory challenges, European household storage products faced a historic surge in stock levels by the close of 2022. Adding to the predicament, the weaker demand observed in the initial half of 2023 has exacerbated the drop in shipments to the European household energy storage sector.

Why are European warehouses reporting high inventory levels for residential energy storage systems?

European warehouses are reporting very high inventory levels for residential energy storage systems, with aggressive prices expected, as distributors need to start clearing their stocks, according to S&P Global. Global residential storage shipments fell for the first time in Q2 2023. Image: S&P Global

Where is the market for residential energy storage systems located?

Currently, the market for residential energy storage systems is mainly concentrated in Europe, North America, Australia and South Africa.

Why is there no demand for residential energy storage systems in China?

1) There is little domestic demand for residential energy storage systems in China, and more than 90% of the products are exported. 2) Compared with grid energy storage systems and telecom energy storage systems, there are fewer Chinese companies engaged in lithium batteries for residential energy storage systems.

How many manufacturers are involved in residential energy storage systems?

There are relatively few manufacturers involved in residential energy storage systems, but the requirements are high, especially involving many certifications, and the gross profit margin of their products is as high as 30%.

Will residential energy storage installations grow in 2023?

Globally, S&P Global said it expects residential energy storage installations to rise by approximately 15% in 2023. However, shipment growth is expected to be more gradual as inventory levels are gradually depleted.