The rapid growth of balcony photovoltaics in Europe has driven the installation of balcony energy storage.
In 2023, the number of operational balcony photovoltaic systems in Germany increased more than threefold compared to 2022, and this rapid growth continued into the first half of 2024, almost reaching the total installation numbers of the previous year. Balcony energy storage, as a branch of home energy storage, is typically installed on the balconies or terraces of small households, forming a micro solar storage system together with balcony photovoltaics and micro-inverters. This structure is essentially similar to the distributed rooftop photovoltaic + inverter + energy storage equipment (or integrated solar storage) system. However, the main difference between balcony energy storage and home energy storage lies in its ease of installation, requiring neither complicated steps nor high labor costs.
In Europe, installing home energy storage involves a strict process, not only requiring licensed electricians for on-site installation but also needing to report to the grid company. The combined labor and installation costs can amount to several thousand euros. A senior executive at a company engaged in the European home energy storage market told GGII Energy Storage that installing home energy storage in Europe requires both professional electricians and grid company inspections. However, as home energy storage is a household-level business, the more industrial elements are added, the more restrictive the government becomes. Therefore, the real significance of home energy storage lies in its appliance-like nature. “No family buys a television or refrigerator with the complexity of purchasing home energy storage,” the executive remarked.
From the perspective of Germany, where balcony energy storage is particularly popular, the Solar Package 1 policy passed in April significantly accelerated the adoption of balcony photovoltaics and balcony energy storage. Firstly, the inverter power limit was raised from 600W to 800W, allowing for grid-connected power generation simply by plugging the AC cable into a household socket. Secondly, the registration process was simplified, no longer requiring registration with the network operator. Thus, the core appeal of balcony photovoltaics and balcony energy storage lies in their elimination of complex installation procedures and high installation costs, making them truly personal consumer products, more akin to household appliances.
Brand vs. Channels: Which is More Important?
The growing demand for balcony energy storage overseas has attracted widespread involvement from domestic companies, primarily those in home energy storage, inverter/converter, and portable energy storage sectors.
On the one hand, in terms of products, energy storage capacities typically range from 1-3 kWh, which can be paired with mainstream balcony photovoltaic micro-inverter systems. Inverter companies can generally vertically integrate and develop related products. On the other hand, home energy storage and inverter companies have higher brand recognition and mature sales channels overseas, helping them quickly capture market share and increase customer loyalty, which can be directly replicated in the balcony energy storage field.
Peng Yi, Deputy General Manager of Daineng Power, told GGII Energy Storage that when domestic companies enter the overseas balcony micro-storage market, they often adopt a distributor model similar to that of home energy storage. This model allows companies to quickly enter the market, leveraging local distributors’ networks and influence to drive product sales. In this process, both brand building and channel expansion are equally important. Brand often enhances market awareness and trust, while a strong channel network ensures rapid market penetration. As the market matures and brand competition intensifies, the trend towards appliance-like balcony micro-storage will become more apparent. Appliance-like products may transition from technology-driven to brand-driven markets, with consumers choosing balcony micro-storage devices based on brand trust and recognition. Peng Yi pointed out that the user experience design goals of balcony energy storage and home appliances are aligned, aiming to make it easy for ordinary consumers to use. This experience optimization may gradually guide balcony micro-storage devices towards a market positioning similar to that of household appliances, eventually becoming essential energy management tools for homes.
Product Performance: Compatibility and Intelligence
Entering the balcony energy storage market can target two major segments: micro-inverters and micro-storage devices. In terms of micro-inverters, Chinese companies have performed remarkably well. Among the top five global micro-inverter companies in 2023, four are Chinese, with three of them being publicly listed companies. According to their annual reports, Hemai Co., Ltd. sold approximately 1.3188 million micro-inverters in 2023; Hoymiles sold about 842,500 micro-inverters; and Deye sold a cumulative total of 273,500 micro-inverters.
For micro-storage, companies can target households that have already installed balcony photovoltaics and micro-inverters. These users have a certain foundation in photovoltaic systems and have a high acceptance and demand for plug-and-play, easy-to-install micro-storage devices. Therefore, mainstream manufacturers are currently focusing on “compatibility” with their micro-storage devices. Daineng Power believes that balcony micro-storage devices primarily revolve around small-scale energy storage, used in conjunction with photovoltaic modules and micro-inverters. This type of product requires a high degree of compatibility with micro-inverters and must consider self-consumption scenarios to ensure efficient energy conversion. Hemai stated that traditional balcony micro-storage systems on the market are mostly DC-coupled, which imposes certain requirements on compatibility between micro-storage devices and different manufacturers’ micro-inverters, necessitating the matching of different micro-inverter manufacturers’ MPPT algorithms. However, Hemai’s AC-coupled solution is compatible with all micro-inverters.
It is worth mentioning that as balcony energy storage increasingly adopts appliance-like attributes, intelligence is becoming a key trend in the future of these products. Hemai pointed out that the emergence of balcony energy storage/micro-storage has introduced more possibilities to the home energy storage market, making residential energy storage devices smaller and more intelligent, and taking an important step towards integrating energy storage with smart homes. Daineng Power also believes that in the appliance-like process of home energy storage, integration with smart home systems will be a key direction. Through seamless integration with smart home ecosystems, balcony micro-storage devices can better manage and optimize household energy use.
Which Countries Should Be Watched?
Globally, the home energy storage market looks to Europe, and within Europe, it focuses on Germany. Currently, Germany has the largest demand for balcony micro-storage in Europe, followed by France and Austria, with relatively less demand in other countries.
In Germany, the Solar Package I photovoltaic plan approved by the Federal Ministry for Economic Affairs and Climate Action in April of this year increased the inverter power for simplified registration of balcony photovoltaics from 600W to 800W. In September, Germany will begin implementing the KFW442 subsidy policy, which subsidizes photovoltaic and energy storage systems, including the purchase/installation of new charging stations. In addition, the German government supports the construction of small photovoltaic systems and balcony photovoltaic storage systems through the EEG (Renewable Energy Sources Act), which provides feed-in tariff subsidies for photovoltaic power generation systems. Small balcony systems can also enjoy certain feed-in tariff subsidies.
Germany is a highly competitive market, with numerous Chinese home energy storage and inverter companies showcasing their related balcony energy storage products at this year’s Intersolar in Munich. These include Hemai’s MS series micro-inverters, Daineng Power’s new micro-storage B2.5K-XSLA and micro-inverter GT800TL, Hoymiles’ hybrid micro-inverter EZHI, River 1600, Sungrow’s S450S, S800S, S1600S micro-inverters, Zendure SolarFlow, and Anker’s Solix 1600.
In Austria, the EAG Act supports the promotion of photovoltaic and energy storage equipment. This act provides feed-in tariff subsidies for small photovoltaic systems and additional funding support for installing energy storage systems.
Calculation example of balcony solar power station
A high self-consumption rate is essential for the economic operation of a solar system. This can be achieved by optimizing the use of household appliances, heating (for example, heat pumps), or charging electric vehicles during sunny periods. Of course, excess solar energy can also be stored in a battery storage system to achieve a higher self-consumption rate.
For small balcony power plants with an output power of 300W, the use of a storage system is not meaningful, as experience shows that the self-consumption rate is 80-90%. Even for large balcony solar power plants with an output power of 600W, the use of a storage system is not worth it, as direct self-consumption is still 60-80%.
However, when the total installed power of the solar modules exceeds 800W or even more, and the electricity consumption time is in the evening or morning, when there is no solar energy or solar energy generation is insufficient, the use of a battery storage system can improve the economic efficiency of the solar system.
The self-consumption rate of solar energy is about 50% or even lower. At this time, we consider the possibility of adding a battery storage system.820kWh / 365 = 2.24 kWh/day.The daily power generation of a 820W solar panel is 2.24 kWh. Therefore, the solar battery storage capacity for solar energy storage should be around 2 kWh to ensure generation peak shifting.
When the retail price of a battery is around 750 euros, and the battery storage can meet at least a 50% self-consumption rate for solar energy, then it is worthwhile to install battery storage in a balcony PV system.
| Model | DC-Coupled-2kW | DC-Coupled-2kW-2.5kWh | ||
|---|---|---|---|---|
| PV Input | ||||
| Max. input (W) | 2000 | |||
| Numbers of MPPTs | 2 | |||
| MPPT Voltage Range (V) | 16~50 | |||
| Max. input Current (A) | 2 × 25 | |||
| Max. input short-circuit current (A) | 2 x 30 | |||
| Suggested Module Power (W) | 240 to 500+ | |||
| PV Output | ||||
| Max. Output (W) | 300 x2/400 x2 optional | |||
| Numbers of Outputs | 2 | |||
| Output Voltage Range (V) | 28 ~ 50 | |||
| Max. Output Voltage (V) | 50 (settable) | |||
| Max. Output Current (A) | 25 (Settable) | |||
| Battery | ||||
| Battery Protocol | Based on Pylontech | Battery Cell | Prismatic LiFePO4 50Ah | |
| Battery Current(A) | 40 | Usable Energy Capacity (kWh) | 2.3 | |
| Battery Voltage (V) | 48/51.2 | Battery Voltage(V) | 51.2 | |
| Battery Type | LFP and BMS needed | Life Cycling (0.5C 25℃) | 6000 | |
| Operation Temperature (C) | Charge: 0~45℃ / Discharge: -20~45℃ | |||
| General | ||||
| Dimensions (mm) | 337 x 217 x 111 | 448 x 515 x 150 | ||
| Weight (kg) | 3.7g | 53kg | ||
| Plug | MC4 | |||
| Placed | Indoors or Outdoors | |||
The Explosive Rise of Balcony Photovoltaics in Europe
The rapid expansion of balcony photovoltaics across Europe has significantly boosted the demand for balcony energy storage systems. In Germany alone, the number of operational balcony photovoltaic systems in 2023 surged over threefold compared to 2022. This remarkable growth continued into the first half of 2024, nearly matching the total installations of the previous year.
What is Balcony Energy Storage?
Balcony energy storage systems, as a branch of home energy storage, are typically installed on balconies or terraces of small households. They form a micro solar storage system in conjunction with balcony photovoltaics and micro-inverters. This setup closely resembles the structure of distributed rooftop photovoltaic systems combined with inverters and energy storage devices.
Why Balcony Energy Storage is Gaining Popularity
The primary appeal of balcony energy storage lies in its ease of installation and cost-effectiveness. Unlike traditional home energy storage systems, which require a licensed electrician and grid company approval, balcony energy storage can be installed with minimal effort and without the high labor costs. This simplicity is turning balcony energy storage into a true consumer product, much like household appliances.
Brand vs. Channels: What’s More Important in the Balcony Energy Storage Market?
The growing demand for balcony energy storage in overseas markets has led many domestic companies, particularly those in the home energy storage, inverter/converter, and portable energy storage sectors, to enter this space.
Product Focus: Compatibility and Intelligence
Companies are focusing on product compatibility, especially with micro-inverters, and enhancing the intelligence of these systems. Major manufacturers are offering micro-storage devices that are easy to install and compatible with existing photovoltaic systems, making them ideal for the European market.
The Role of Brands and Channels in Market Penetration
Brands with strong recognition and mature sales channels in overseas markets can quickly capture market share and build customer loyalty. As the balcony energy storage market matures, the trend towards appliance-like products will intensify, with consumers increasingly relying on brand trust and recognition to make their purchasing decisions.
Key European Markets for Balcony Energy Storage
Globally, Europe, particularly Germany, is leading the demand for balcony energy storage. France and Austria also show significant potential, with government support through policies like the Solar Package I in Germany and the EAG Act in Austria.
Germany: A Strategic Market for Balcony Energy Storage
Germany’s recent policies, including the Solar Package I and the upcoming KFW442 subsidy, have simplified the installation process for balcony photovoltaics and energy storage, making it a highly competitive market. Numerous Chinese companies are showcasing their products in this market, aiming to capture significant market share.
France and Austria: Emerging Markets to Watch
In Austria, the EAG Act supports the promotion of photovoltaic and energy storage systems, while France offers feed-in tariff subsidies for households installing photovoltaic systems. These policies make these countries attractive markets for balcony energy storage solutions.