The Japanese market for energy storage systems (ESSes) will rapidly grow to 1,195,708kWh in 2017 and 3,306,600kWh in 2020, driven by residential products, according to the results of a survey by the Yano Research Institute Ltd.
The scale of the market is expected to be 581,491kWh (the total capacity of ESSes shipped by manufacturers) in 2015, which is an increase of 94.1% on a year-over-year basis. Of the total capacity, residential products account for more than 50% and have been driving the market.
Manufacturers of such residential products are offering a solar power generation system and ESS as a set. Also, they are making proposals for existing users of solar power generation systems in view of the expiration of 10-year surplus electricity purchase contracts based on the feed-in tariff (FIT) scheme, which is scheduled in 2019 or later.
Depending on the status of the subsidy of the Japanese government, the market growth will slow down in 2016. However, Yano Research Institute considers that the growth will pick up again because of the above-mentioned strategies.
Other than residential products, the increase in the demand for products for power grids and corporate and business use will contribute to the market growth due to the increase in renewable energy and changes in the power market, and the market will grow to 1,195,708kWh in 2017, the company predicted.
According to Yano Research, the Japanese market for ESSes will be 3,306,600kWh in 2020, which is about three times larger than the expected market scale in 2017 (an increase of 176.5%). In regard to installation places and applications, residential products will continue to account for a large ratio, and the ratio will be 66.0% in 2020.
Other than residential products, products for power grids and products for corporate and business use will account for 16.9% and 14.5%, respectively, according to the company.© Japan Today