From ESS News
Europe continues to lead the global residential energy storage segment, accounting for seven of the top 10 global residential storage markets in 2025. However, this year, the European residential storage market is experiencing a 9% decline in installations for the second consecutive year.
There are two main reasons for this contraction. On one hand, the fall in energy prices following their peak during the energy crisis, which has reduced the sense of urgency among consumers to install storage to cut their energy bills. And, on the other hand, the expiration of major government subsidies in key markets, which has eliminated a crucial incentive for the adoption of storage.
The downturn, however, is now nearing its end, with installations plateauing in 2026 and growth picking back up in 2027 and beyond.
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