The cost of energy in Europe has risen sharply, driving the demand for household solar storage. High inflation in European countries has already pushed energy prices to high levels in the second half of 2021, and the Russia-Ukraine conflict at the beginning of this year has caused a shortage of fossil energy supplies worldwide, and international coal, oil and natural gas prices have risen rapidly since the beginning of the year.

Solar-storage integration is more economical

Compared with installing only photovoltaic systems, supporting energy storage will significantly increase the IRR and shorten the payback period. Assume that a household in Germany installs a 5Kw/10kwh solar storage system, the system cost is 12,000 euros, the average daily electricity consumption is 20kwh, the effective utilization rate of the installed solar storage system power generation is 85%, and the service life is 20 years. Compared with a system without photovoltaic storage, its income mainly comes from the self-sufficiency of photovoltaic power generation and the income from on-grid electricity.

According to calculations, the IRR of the solar storage system within 20 years is 17%, and the investment recovery period is 5.5 years. However, the effective utilization rate of power generation with only photovoltaic installation and no supporting energy storage system is only 25%, the calculated IRR is 12%, and the investment payback period is 7.3 years. The internal rate of return of installing the solar storage system has increased by 5pct, and the investment recovery period has been shortened by nearly 2 years, reflecting the economic advantages of the solar storage system.

Photovoltaic: With the maturity of photovoltaic technology, the cost is gradually reduced, and it can be applied to various scenarios in countries along the “Belt and Road”, bringing significant benefits to local economic development and energy transformation.

Energy storage: The intensification of the energy crisis in Europe has led to a continuous increase in electricity costs, and energy storage systems have become a rigid demand for households. European countries have launched various subsidy policies for household energy storage to accelerate energy transformation in Europe.