Australia’s energy storage market will have grown from just $11.25 million in 2013 to $630 million by 2020 according to energy market analysis firm GTM Research.
The Australian Energy Storage Market: Downstream Drivers and Opportunities, suggests Australia will hit 244MW of annual installed capacity by 2020. The next year will see a massive jump; from just 1.9MW in 2015 to 44MW in 2016.
Much of this growth will be driven by the residential market – new purchasers installing solar and storage, and also drawn from the existing 1.4 million solar households upgrading to battery system.
“Residential customers with high retail electricity prices – many with oversized solar PV systems – will soon be jolted by paltry solar export tariffs that are slated to replace the expiring high feed-in tariffs,” GTM Research said, as reported by Energy Matters.
“By 2020, residential energy storage in Australia will be an annual 13MW market.”
With regard to commercial scale storage, GTM forecasts 23MW for next year; up from just 1.4MW in 2015.
GTM expects residential and commercial storage will account for 90 per cent of battery system deployments.
Battery manufacturers have been eyeing Australia for some time as a platform to debut their next generation energy storage products.
In September, Tesla announced Australia will be one of the first markets where its Tesla Powerwall home battery system will be available. Also in September, Enphase Energy said it had chosen Australia to be the first market to be shipped its Enphase AC Battery system.
In October, after releasing its report, Powerful Potential: Battery Storage for Renewable Energy and Electric Cars, the Climate Council said installing batteries and dumping a mains grid connection altogether could be cost-competitive with staying connected by as early as 2018.
The research stated half of all Australian households are predicted to adopt solar panel systems with battery storage.
“It could be a game changer allowing households to control their energy and energy bills,” said Climate Council chief executive officer Amanda McKenzie said.
“Already 1.4 million Australian households power their homes with solar. Household batteries will mean that households can store the power they make and have the flexibility to use it later on.”
Solar PV systems with added battery storage will become the most economical solution to providing electricity as feed-in tariffs are phased out and grid electricity becomes more expensive, the report found.
“Australians are forging a people-led renewables revolution. Australia leads the world in rooftop solar with more than twice the solar PV penetration rates of the next country (Belgium) and more than three times the penetration of Germany, the US and the UK,” Ms McKenzie said.
“Now we have the opportunity to lead the world in household battery storage with major companies choosing Australia as their first market. This kind of competition is likely to cause battery storage costs to fall even more dramatically.
“In fact, going off-grid by installing battery storage could be cost-competitive with staying connected as early as 2018 as the price of battery storage falls.”
There appears to be no shortage of interest in residential energy storage solutions. Energy Matters reported thousands of potential early-adopters have signed up for its pre-release announcement list.