A new report from Navigant Research predicts that the market for residential energy generation and storage will get very big by 2023, bringing in $71.6 billion annually. According to the report, rooftop solar PV and other technologies are transforming the residential power industry.
Solar PV panels, which enable utility customers to generate some of their own electricity and sell unneeded power back to their utility, are the most visible form of the broad disruption caused by distributed generation (DG). The growing affordability of DG technologies is altering utilities’ traditional relationship with residential customers by giving customers greater control of their energy consumption.
We know this is big, but how big is it? According to a new report from Navigant Research, worldwide revenue from all forms of residential distributed generation and energy storage will grow from $52.7 billion annually in 2014 to $71.6 billion in 2023.
“Rooftop solar PV is just one of the technologies that are transforming the traditional residential power industry,” said Neil Strother, principal research analyst with Navigant Research, in a statement. “Some of these technologies, such as residential combined heat and power, are in the early stages of market development, while solar panels are more mature. Nonetheless, these energy innovations and attractive financing mechanisms provide residential customers with new options.”
One key driver for this sector, according to the report, is continuing advances in new technologies, such as more efficient energy storage systems (ESSs). These advances, along with government subsidies for ESSs, often in the form of feed-in tariffs, are enabling the combination of rooftop solar PV systems and residential energy storage in order to collect and store energy for use when sunlight is unavailable or there is a power outage.
The report, “Residential Energy Innovations”, examines the market for residential generation and storage technologies and discusses how they are reshaping the future of the residential power industry. It analyzes the key market drivers and inhibitors influencing the market, as well as major technology issues. Global market forecasts, segmented by region and category – solar PV, energy storage, electric vehicles, and residential combined heat and power – extend through 2023. The report also provides profiles of established and new industry players and explores policy issues related to residential distributed generation and energy storage technologies. An Executive Summary of the report is available for free download on the Navigant Research website.