Recently, Tesla’s official announcement project of energy storage Gigafactory has been located in Shanghai, which not only alleviates Megapack’s order pressure in the world, but also has huge market attraction in China. The completion of this project will bring into play the “catfish effect” of Tesla, and the domestic energy storage supply chain is expected to usher in changes.

From the perspective of the global market, with the price of electricity in Europe and the United States rising in recent years, the impact of Russia-Ukraine conflict and other events, overseas electricity costs continue to rise, overseas countries have introduced policies to promote the development of energy storage industry.

But in contrast, the energy storage market continues to heat up. According to Bloomberg data, the global energy transformation investment exceeded 1 trillion US dollars in 2022, with China’s investment reaching 546 billion US dollars, ranking first in the world.

Energy storage circuit has become a “trillion market” after photovoltaic, electric vehicles by the capital market.

Under the energy crisis, the electricity price of European and American countries has been rising year by year in recent years, and affected by the Russia-Ukraine conflict and other events, the cost of natural gas has soared, and the electricity price has risen rapidly in the short term, resulting in the rising electricity cost and stimulating the demand for installed photovoltaic installations for household use. The high electricity price makes the integration of household light storage become the most economical solution at present.

In the early energy structure dominated by thermal power generation, because the power generation side has strong planning, it can keep up with the load side fluctuations. However, with the energy system gradually shifting to new energy, photovoltaic parity has been reached worldwide, and the installed amount is rising. With the large-scale integration of highly random and unstable wind and optical power into the grid, the proportion has increased from 5.65% in 2012 to 28.40% at present. The high volatility of the power generation side poses much higher challenges to the grid system than before, and the random, intermittent and volatile characteristics of wind-power generation are increasingly affecting the grid.

In this context, overseas countries have quickly implemented optical storage subsidy policies to facilitate the installation of household energy storage facilities. Japan provides 66% of the cost subsidy for households and businesses installing lithium electronic batteries, and Bavaria provides 500 euros ($550) subsidy for each energy storage system with a capacity of more than 3kWh.

The U.S. ITC policy provides a 30% tax credit for photovoltaic energy storage projects. A $20,000 energy storage system can receive a subsidy of $6,000 to $7,000. After the subsidy is included, the cost can be repaid in 4-5 years, after which the use of electricity is equivalent to free, but also can be used to balance the peak-valley price difference.

Based on this underlying logic and policy document guidance, the next few years will be the explosive period of the global household energy storage market, the market size may reach 100 billion by 2030, which is very imaginative space.