What Is the Current Market Situation for Household ESS? What Is the Next Step for Domestic Brands?

Household ESS products refer to energy storage systems designed for residential user scenarios, typically installed in combination with rooftop PV systems to provide electricity for households. Based on specific system configurations, household ESS systems can be categorized into hybrid household PV + ESS systems, coupled household PV + ESS systems, off-grid household PV + ESS systems, and PV ESS energy management systems.

In simple terms, household ESS products mainly consist of ESS batteries and inverters. End-use products can either be standalone ESS battery systems + inverters or an integrated system combining both. ESS batteries and inverters are the two main components of household ESS systems, with ESS batteries used for storing electricity and inverters for converting electricity for load or grid connection.

From the perspective of product offerings, household ESS products can be divided into integrated systems and modular systems. Integrated ESS battery systems combine batteries and inverters into one unit, typically sold and installed by integrated system brands, and are positioned as high-end products. Power wall battery systems, on the other hand, are standalone ESS battery systems and inverter products. ESS battery systems include battery packs, BMS, etc., without inverters, and are generally sold to installation service providers. These providers select suitable inverters for customer installation. Procurement costs are relatively lower for modular systems, and installation and capacity expansion are more flexible.

Currently, the global household ESS market exhibits distinct demand differentiation. Demand in European markets is relatively weak, mainly due to high penetration rates in traditional developed markets like Germany and Italy or subsidy reductions. However, the Ukrainian market is experiencing significant growth driven by post-war power restoration needs. Emerging markets show outstanding performance in household ESS, with rapid growth in South Asia and Southeast Asia. Residents in emerging markets face challenges such as weak power grid infrastructure, frequent power outages, and high electricity prices, necessitating reliable power supply and lower electricity costs, thus driving the deployment of household ESS systems. Users in emerging markets are relatively price-sensitive, often seeking high cost-performance products. Currently, domestic companies with superior cost-performance and early channel layouts are emerging.

According to data, in the ranking of domestic household ESS system shipments by independent brand enterprises in 2023, Huawei ranked first, followed by BYD and Growatt in second and third places. Voltaiq Energy, Maitian Energy, Sofar, Senergy Electric, Deye, Daqin Energy, and Aisiter ranked 4th to 10th, respectively. Among them, Deye has a broad market layout, with overseas-focused operations covering emerging markets in Asia, Africa, and Latin America, as well as the European market, holding a leading position in emerging markets like Asia, Africa, and Latin America.

On the weekend, DeepSeek shared a brief analysis titled "One Man's Opinion," serving as a starting point for discussion. Next, Battery Network will provide more in-depth analysis and sharing from professional perspectives on markets, big data, products, and brands. Stay tuned.

Analysis of Major Global Household ESS Brands

1. Tesla

Tesla has long dominated the global household ESS market with its PowerWall series products, known for their high energy density, intelligent management, and strong brand influence, particularly holding a significant share in European and US markets. Recently, Tesla's PowerWall has entered the Chinese market, further expanding its presence in the Asia-Pacific region.

2. Pylontech

As a leading enterprise in China's household ESS sector, Pylontech enjoys high brand recognition in the global electrochemical ESS market. Its household ESS products rank among the top three in domestic shipments. Leveraging its independent brand and technological advantages, the company performs exceptionally well in overseas markets such as Europe and Africa, particularly excelling in the integration of household ESS systems.

3. Hoymiles ESS

Hoymiles ESS, with its digital energy storage technologies (e.g., D-Galaxy Smart Cloud Platform) and global project delivery capabilities, has been listed in the BNEF Tier 1 ranking. Its D-Cube series products address user-side ESS operation and safety issues through liquid cooling systems and multiple safety designs, successfully expanding into markets like Europe and Southeast Asia.

4. Other International Brands

Brands such as Fluence and Powin Energy from the US, and Saft from Europe, also hold significant positions in technology R&D and large-scale project applications.

Future Development Trends in the Household ESS Market

1. Cost Reduction and Performance Improvement Driven by Technology

Continuous advancements in lithium battery technology (e.g., increased energy density, extended cycle life) are enhancing the economic viability of ESS systems. The International Energy Agency predicts that after 2025, "PV ESS integration" will become one of the most cost-effective power generation methods, accelerating the adoption of household ESS.

2. Dual Drivers of Policy and Market Demand

Policy Support: Governments are promoting household ESS development through subsidies, tax incentives, and other policies. For example, Japan offers subsidies for energy management systems, the US encourages household ESS installation through the Inflation Reduction Act, and various regions in China have introduced electricity price subsidies and convenient grid connection policies.

Demand Growth: The need for energy independence (e.g., addressing power outages), electricity price fluctuations, and increased environmental awareness are driving household ESS penetration from high-end to mass markets.

3. Intelligentization and Multi-Scenario Applications

Household ESS systems are integrating with smart home and virtual power plant (VPP) technologies, enabling real-time energy monitoring and optimized allocation. For instance, Hoymiles ESS's D-Galaxy platform supports VPP integration, enhancing user benefits.

4. Intensified Global Competition

While European and US markets are maturing, emerging markets in Asia-Pacific and Africa show significant growth potential. Chinese brands are accelerating their overseas expansion, capturing market share through localized operations (e.g., Hoymiles ESS's global service network).

Strategies and Recommendations for Domestic Brands

1. Technological Innovation and Differentiated Competition

For example, Huawei has upgraded its "solution" for household green electricity, focusing on generation, storage, backup, usage, and safety to create an ultimate user experience of worry-free and flexible electricity usage. From green power generation to intelligent electricity usage, from zero-carbon homes to zero-carbon communities, and from energy independence to energy interconnection, it leads household energy management.

Focus on high-safety, long-lifespan technology routes, such as Hoymiles ESS's liquid cooling system, addressing user concerns about safety and low-temperature performance.

Develop intelligent management systems to improve energy utilization efficiency (e.g., Pylontech's integrated ESS solutions).

2. Global Expansion and Localized Operations

Customize products to meet regional needs. For instance, the European market emphasizes environmental certifications, while the Southeast Asian market requires adaptation to high-temperature and high-humidity environments.

Establish overseas R&D centers and localized teams to reduce service costs and respond quickly to market demands (e.g., Hoymiles ESS's global network).

3. Policy Benefits and Industry Chain Collaboration

Leverage China's new energy policies (e.g., full guaranteed purchase, tax incentives) to reduce domestic production costs while expanding into overseas markets with favorable policies.

Collaborate with PV and EV enterprises to create "PV ESS charging" integrated solutions, enhancing overall competitiveness.

4. Brand Building and Market Education

Enhance brand credibility through international certifications (e.g., BNEF Tier 1) and benchmark projects.

Strengthen user and market education, promotion, and awareness campaigns to highlight the value of household ESS in energy savings, cost reduction, and emergency power supply, shifting market perception from "optional" to "essential."

Conclusion

Global household ESS market leaders remain dominated by brands like Tesla and Huawei. However, domestic brands such as Huawei, Pylontech, BYD, CATL, Huasun Energy, and Hoymiles ESS are rapidly rising through technological innovation and globalization strategies. The future market will feature trends of technological advancement, policy support, intelligentization, and globalization. Domestic brands must continue to focus on technological differentiation, global localization, and industry chain collaboration to secure a larger market share in the fierce competition.