In 2023, the energy storage market, spanning utility-scale, commercial, and industrial, as well as residential storage, witnessed significant competition and surplus across the industry chain, from upstream materials and equipment to downstream components and integration, both domestically and internationally. Enterprises vied on pricing, delivery schedules, and localized services. MeritSun, as a leading enterprise in the new energy lithium battery storage industry, successfully weathered the challenges of 2023 and is poised for a promising 2024, with the energy storage market showing signs of recovery and warmth.

The forecast by CICC indicates robust growth in the large-scale energy storage market in 2024. Factors like increased solar photovoltaic installations in the US and electricity reform in China are expected to drive global growth exceeding 40% year-on-year.

Commercial and industrial energy storage demand is surging, set to grow by over 100% due to revenue optimization and cost reduction. Despite inventory reduction affecting the residential market, shipments are expected to align with terminal installations.

Additionally, advancements like liquid cooling and fire protection solutions, along with emerging technologies such as compressed air and flow batteries, signal a diverse and innovative trajectory for the energy storage market.

Now, let's delve into specific trends in energy storage development.

1. The Global Large-Scale Energy Storage Market In 2024 Exhibits Several Significant Trends

CICC forecasts that global large-scale energy storage shipments will exceed 190GWh, representing a year-on-year growth of over 40%. This growth trend is driven by the transition towards renewable energy, with an increasing proportion of wind and solar installations. This trend intensifies price fluctuations in the electricity spot market, thereby fueling the continued growth of front-of-the-meter large-scale energy storage installations.

• In the US market, accelerated grid integration of large-scale energy storage projects is evident, particularly in California and Texas, propelled by policy reforms and subsidy support. The frequency of negative electricity prices is increasing, with significant intraday price fluctuations, positively impacting the profitability of energy storage assets. Reforms by the Federal Energy Regulatory Commission (FERC) are expected to streamline grid integration procedures, further driving the pace of project grid connection.

• In the European market, countries like the UK and Italy are leading the installation of large-scale energy storage systems, while emerging markets such as Belgium, Sweden, Spain, and Greece are rapidly developing under policy support. The frequent occurrence of negative electricity prices and weak grid infrastructure are driving increasing demand for energy storage. Meanwhile, countries are actively promoting the planning and construction of large-scale energy storage projects.

• In the European market, countries like the UK and Italy are leading the installation of large-scale energy storage systems, while emerging markets such as Belgium, Sweden, Spain, and Greece are rapidly developing under policy support. The frequent occurrence of negative electricity prices and weak grid infrastructure are driving increasing demand for energy storage. Meanwhile, countries are actively promoting the planning and construction of large-scale energy storage projects.

In summary, the global large-scale energy storage market is poised to sustain rapid growth in 2024, driven by energy transition, policy support, and the increasing demand for grid flexibility. Large-scale energy storage will play an increasingly important role in the global energy landscape.

In 2024, MeritSun has finally introduced its long-awaited customized large-scale energy storage systems, aiming to become your reliable partner in energy transformation with leading technology and outstanding products. We are committed to providing comprehensive support and solutions for global large-scale energy projects and distributors. Positioned at the forefront of the thriving large-scale energy storage market, we seize opportunities to expand our business blueprint firmly.

2. Normalization of Inventory Signals Positive Growth in Global Residential Energy Storage Demand

Currently, the household storage market is in a state of structural inventory, and regional inventory is expected to return to normal levels in 2024H1, with global household lithium battery shipments expected to reach 25GWh in 2024.

In 2023, due to high expectations for the household storage market in 2024, channel distributors continued to accumulate inventory. Different regions show a structural inventory distribution due to varying demand, installation speeds, and product certifications worldwide.

In 2023, although natural gas and residential electricity prices in Europe fell back slightly, they remained high, starting from the rise in natural gas prices in 2021, which drove electricity prices upward and improved the economics of household storage systems. Despite the decline in natural gas prices, electricity prices remain high, and solar storage systems are still economically viable, especially in Germany.

The shortage of installation workers in 2022 and the strong economics in 2023 prompted high growth in household storage installations in Europe. The European household storage market is continuing to destock, expected to end by the first quarter of 2024, and steadily increase with industry demand. Globally, countries with high electricity prices such as Europe, Japan, and Australia are driving demand for household storage installations.

In the United States, in 2023, the intention to install residential photovoltaic and energy storage systems decreased due to interest rate hikes and the impact of NEM3.0 policies. However, it is expected that interest rate hikes will end in 2024, and the US market still has significant growth potential. CICC Research predicts that global household storage installations will reach 20GWh in 2024, a year-on-year increase of 38%, with Europe reaching 13GWh, a year-on-year increase of 34%.

In 2024, MeritSun will also focus on developing innovative products for home solar energy storage systems, with the flagship product being the popular Powerwall Home Energy Storage favored by users worldwide, to meet global household storage system needs with large-capacity wall-mounted storage. Meanwhile, continuously launching function innovations, appearance upgrades, and service improvements for a new series of household storage solutions, leveraging technological advantages to create high-satisfaction household energy storage solutions.

3. OSSCD(Optical Storage, Charging, and Detection): Unlocking New Trends in Commercial and Industrial Energy Storage

For commercial and industrial energy storage operations, experts advise focusing on companies with strong distribution channels to tap into new demand opportunities and capitalize on the growth potential.

Optical Storage, Charging, and Detection (OSSCD) integrates photovoltaic generation, energy storage, and fast charging systems. It optimizes electricity usage by storing excess power for peak demand periods and charging during off-peak times, applicable in various settings like highway service areas and community charging stations.

OSSCD stations offer economic efficiency, flexibility, and safety. They benefit from multiple revenue streams and enhance operational efficiency through intelligent power distribution while ensuring charging quality and grid safety. With supportive policies, OSSCD integration is set to become a trend in future operational setups.

MeritSun's High-volt Rack Module Series epitomizes industrial and commercial energy storage solutions, offering exceptional flexibility, safety, and reliability. This comprehensive system, comprising battery modules, CBMS, and cabinet assemblies, addresses diverse energy storage needs with customized solutions tailored to specific requirements.

Furthermore, MeritSun's Commercial and Industrial Energy Storage Solutions features customizable liquid cooling, intelligent communication, and top-tier safety functions, ensuring optimal performance and long-term reliability.

MeritSun ensures seamless integration of solutions with professional expertise to precisely adapt to evolving needs. In 2024, we will collaborate closely with industry partners to build an energy storage ecosystem. Our customized battery products will support the application of integrated OSSCD solutions across various scenarios.

Innovation Paves the Path, Shaping Our Collective Future

In 2023, the energy storage market witnessed intense competition, yet MeritSun, as a pioneer, successfully navigated challenges, ushering in the recovery and warmth of the 2024 energy storage market. Looking ahead, the global large-scale energy storage market will continue to thrive, with rapid growth in commercial and industrial energy storage demand, and a gradual return to normalcy in the residential energy storage market.

2024 will witness the emergence of various trends in the energy storage market. From significant trends in the global large-scale energy storage market to the normalization of inventory in the residential energy storage market, and the unlocking of new trends in commercial and industrial energy storage with OSSCD, the diversification and innovative development of the energy storage market are becoming more apparent.

MeritSun remains at the forefront of this energy revolution, providing comprehensive support and solutions for global large-scale energy projects and distributors. We look forward to exploring, developing, and creating a better future together with you.

By George

MeritSun Power Limited

export-10@MeritSunpower.com

MeritSun was founded in 1999, we have 24 years of professional experience in energy and integrated solution services. We have 100+R&D teams,1368 employees,48 fully automatic production lines, and a 150,000 square meters factory, become the industry pioneers in battery suppliers through effective management.