European Residential Battery Storage Market: Strong Momentum Continues in 2025 – EUPD Research Highlights Strategic Growth Opportunities
Bonn. The European residential battery storage market under 20 kWh has remained resilient in 2025, with notable growth across mid-sized and emerging markets, according to EUPD Research’s latest Electrical Energy Storage (EES) Report© Europe H1 2025. While mature markets such as Germany and Italy began the year with more subdued figures, the overall market trajectory points to continued expansion, with over one million new residential storage systems expected to be installed across Europe this year. Although the phase-out of subsidies and adjustments to support schemes led to a weaker start in top markets, the outlook for the second half is more optimistic. Increasing interest in dynamic electricity tariffs and enhanced self-consumption is expected to stimulate demand among homeowners.
The sector continues to benefit from falling battery prices. A significant drop in lithium prices, combined with intensified competition due to the influx of new market players in the past two years, has accelerated price erosion and reduced overall system costs. According to EUPD Research’s Price and Inventory Tracker©, the price index points of residential storage systems up to 20 kWh in Germany has declined by more than 50% between H1 2023 and H1 2025. In H1 2023, the average selling price for these systems was EUR 1,332/kWh, while in H2 2025 it has dropped to EUR 711/kWh. These dynamics have made residential battery systems more accessible, attracting a broader customer base seeking relief from rising electricity bills.
Despite a moderate decline in residential battery installations during the first half of 2025, Germany remains the strongest markets in Europe, with demand expected to stay resilient throughout the year. The projected 6% year-on-year decline is mainly due to slower PV deployment, reduced regional incentives, and a growing shift in focus toward C&I and utility-scale storage. Still, Germany, alongside Italy, is estimated to account for the lion’s share of new residential storage capacity additions through 2028, despite Italy’s current slowdown following the phase-out of the Superbonus scheme.
In contrast, markets such as Austria, France, the Netherlands, and the Czech Republic are demonstrating steady and robust growth, driven by rising electricity costs since 2023, increasing PV adoption, stable policy support, and increased awareness around energy independence. In the Netherlands, the combination of dynamic tariffs, widespread smart meter deployment, and VAT exemptions for solar PV and home batteries has spurred consumer demand. Sweden, bolstered by tax rebates and a national push toward energy self-sufficiency, has seen a record number of PV systems being installed with residential storage. In France, the upcoming end of the “ARENH” (Accès Régulé à l’Électricité Nucléaire Historique) mechanism on December 31, 2025, is expected to further strengthen self-consumption incentives, as market-based retail electricity rates will rise and become more volatile, making residential and C&I battery storage even more attractive.
Looking forward, while mature markets such as Germany and Italy are stabilizing or experiencing slower growth, other European countries with favourable policy developments and expanding PV adoption, such as Austria and the United Kingdom, are expected to lead the next wave of residential storage expansion. As battery prices continue to decline and market frameworks become more established, home energy storage will play an increasingly important role in Europe’s shift toward a more resilient, consumer-cantered, and decentralized energy system.
The landscape in Europe’s residential energy storage market remains highly competitive. According to EUPD Research, BYD maintained its leading position in Europe in 2024, capturing approximately 20% market share, expected to increase to 21% in 2025. Several other manufacturers have gained market share in 2025, including Huawei, Growatt, Fox ESS, Pylontech, and GoodWe. Established German-based brands such as E3DC, Fenecon, and VARTA Storage have also maintained strong positions. The continued success of these brands reflects the ability to meet evolving customer demands and support the ongoing expansion of decentralized storage solutions.
Strategic growth patterns observed in the European residential battery storage market reflect a broader structural shift. According to EUPD Research’s analysis, based on its Market Tierization© Methodology, derived from its proprietary Global Energy Transition Matrix© (GET Matrix©) and PV | EES Installer Monitor©, mature markets are stabilizing, while policy-driven and emerging markets are gaining traction. This methodology enables a deeper understanding of where momentum is most pronounced and highlights key drivers across Europe’s leading and emerging energy storage markets.
Looking ahead, the upcoming EUPD EES Report© H2 2025 will expand its focus to include C&I and utility-scale storage segments, capturing broader dynamics across the full spectrum of the EES value chain. The relevance of C&I storage will already take centre stage at European Sustainability Week 2025 / ESG Summit on 26th November, highlighting its growing relevance in Europe’s energy transition.