Australia is expected to be the world’s largest residential energy storage market in 2019, according to a short note published this week by Bloomberg New Energy Finance, accounting for 30% of global demand as household storage demand triples.
Bloomberg New Energy Finance (BNEF) published one of its Shorts on Tuesday highlighting the major headline from its latest report, Australia Residential Storage to Triple, Despite High Cost. According to Bloomberg, state governments across Australia are getting behind residential storage which, in turn, is solidifying Australia as one of the most attractive markets on the globe.
More than just installing capacity, the increasing demand is convincing industry leaders to invest in setting up assembly factories. Unsurprisingly — given its recent headline status as home to a mammoth Tesla battery — South Australia has already attracted Sonnen GmbH, AlphaESS, and Eguana Technologies to set up local assembly facilities.
Bloomberg New Energy Finance expects over 70,000 households across Australia will install batteries this year — helped in large part by the provision of AU$147 million in State government subsidies as well as low-interest loans and demand response schemes, all serving to incentivise and inspire interest.
Incentivizing the energy storage still further is the possibility of an election win by the Federal opposition — with an election due for no later than May 18, 2019, and a Labor Party win shaping up to be more than likely — which will see them commit a further AU$200 million in subsidies for another 100,000 household batteries from 2020.
BNEF expects that the eventual path could be somewhat bumpy, but will likely nevertheless be an attractive market even after policy support ends, thanks to one of the world’s highest penetration of household solar which currently already sits at one in five houses partnered with high electricity costs which are pushing customers to search for alternatives.