GTM: Australia’s residential energy storage ‘explosion’ to reach 132MW a year by 2020

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
While residential energy storage is expected to be far and away the biggest segment, GTM has also predicted rapid growth at commercial scale. Image: SunPower Australia.

US analysis firm GTM Research has published the latest commentary to highlight significant potential in Australia for energy storage, driven by the success of its PV industry.

'The Australian energy storage market: Downstream drivers and opportunities', authored by GTM’s Brett Simon, predicts that by 2020, Australia will be installing 244MW of storage capacity on a yearly basis. In monetary terms, Simon predicts that what was an US$8 million market in 2013 will be worth US$448 million in five years’ time.  

Of this total annual capacity figure, as much as 132MW is expected to be deployed behind the meter and paired with PV in homes. Residential energy storage, with households storing their solar to reduce electricity costs, either by reducing their exposure to time-of-use electricity rates or simply by self-consuming a higher proportion of PV-generated power compared to more expensive power from the grid, is likely to drive the market on.

Residential storage will “explode” from 1.9MW deployed this year to 44MW in 2016, the report claims, with the above factors accelerated by big drops in the feed-in tariff (FiT) rates, or by FiT schemes closing early. The country has different FiT schemes for different regions, with different timelines for their phase out or degression. The removal of FiT incentives, replaced by what GTM called “paltry solar export tariffs”, will mean storage makes a growing degree of economic sense for homeowners.

The GTM report also said that commercial-scale storage, while not enjoying prospects for growth as strong as household, will nonetheless ramp up rapidly too. A combination of high demand charges and incentive schemes in South Australia would catalyse this market, from just 1.5MW this year to 23MW in 2016.

Australia’s storage market potential is increasingly well known both at home and abroad

GTM’s report follows closely in the wake of several other reports on the growth potential of energy storage paired with solar in Australia, mostly published by organisations based domestically. Since August, PV Tech's sister site, PV Tech Storage, has covered reports that have emerged from Australian crowd-funded non-profit organisation Climate Council, technical services company AECOM – commissioned by Australia’s Renewable Energy Agency (ARENA) – and more recently from the Australian Energy Storage Council, an offshoot of the Australian Solar Council.

Meanwhile, recent announcements from Tesla and Enphase have confirmed that both US companies share the enthusiasm of GTM and others for the emerging household solar-plus-storage market in Australia. Tesla has confirmed Australia will be one of the initial markets for Powerwall when the EV maker’s home storage battery finally hits the shelves, with Enphase expected to follow suit.

Meanwhile, Tesla’s collaborator on battery packs, Panasonic, is already trialling multiple applications of its own branded home storage devices with utility Red Energy. According to the GTM report, the interest not only of international firms to sell into Australia, but also of Australia’s electricity retailers to diversify into solar-plus-storage, is a strong indication of its future trajectory.

Read Next

PV Tech Premium
July 23, 2021
A reduction in deployment costs combined with technology gains mean solar-plus-storage is an increasingly attractive option for off-grid mining operations looking to cut emissions. Jules Scully looks at successful case studies and the opportunity ahead.
July 19, 2021
Machine learning techniques have been used in a study to boost the accuracy of renewables forecasts by up to 45%, helping improve grid operations in Australia.
July 16, 2021
The new chief of the Australian Energy Market Operator (AEMO) has said he wants the country’s grids to be capable of handling 100% renewables by 2025.
July 13, 2021
Solar PV capacity in Asia Pacific could triple to 1,500GW by 2030, with China driving deployment and Indonesia set to be the region’s fastest-growing market, according to Wood Mackenzie.
July 13, 2021
A renewable energy hub consisting of up to 50GW of solar and wind generation for the production of green hydrogen is being planned for Western Australia.
July 12, 2021
Investor confidence in the Australian clean energy market has been dented by “unhelpful and unpredictable” government interventions.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
August 19, 2021
At 9am (PT) | 6pm (CEST)
Solar Media Events
August 25, 2021
Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
BRISTOL, UK