40,000 European households were equipped with Home Energy Management (HEM) systems last year, up from less than 20,000 in 2015, according to Delta-ee, the specialist distributed energy and heat research and consulting company. The solutions are designed to intelligently manage electricity flows within the home, saving customers up to €1,000 a year.
The consultancy’s comprehensive new report, entitled Home Energy Management: The State and Future of the European Market predicts that while the HEM market is still in its very early stages, annual sales could quickly exceed 200,000 as these systems begin to demonstrate their value.
Arthur Jouannic, Principal Analyst and Digital Energy expert at Delta-ee says: “As the market matures, HEM could have a profound impact on energy consumption. At the moment the most obvious value to be gained from installing a system comes from the ability to optimise self-consumption, reducing the burden on the grid. These benefits will only increase as energy storage and solar PV penetrate more of the market. But HEM’s potential value goes much further.
“As we see the introduction of more favourable regulations and electricity market reform, households will be able to unlock a number of new benefits from HEM systems – not least the reduction of electricity bills without sacrificing on comfort. Of course, it takes time to make reforms but in three-to-five years the rate of change could be very fast indeed – meaning a bright future for HEM.”
Delta-ee’s research shows that a variety of players are entering the HEM market, from start-ups, battery storage companies and data analytics specialists, to energy suppliers and even telcos. The value chain is still quite long and complex, but Delta-ee expects to see more partnerships created and more players entering the market – with early entrants likely to thrive.
Additional trends identified in the research include:
Germany presents the biggest opportunities for HEM to contribute to self-consumption;
France has the most potential for residential demand response and companies are responding by focusing their efforts on grid flexibility;
The Nordics can make use of time of use tariffs which can encourage businesses to develop innovative HEM solutions.
Jouannic concludes: “Despite starting from a low base, the market is growing very quickly year-on-year. And you’re beginning to see these investments pay off. For instance, Germany’s large PV and storage markets have made it an appealing place from which to launch solutions focused on optimising self-consumption. Over the coming years we expect to see similar progress in markets such as France, where self-consumption laws are set to be finalised, and the Nordics.”
Note for editors:
The Delta-ee Connected Home Service is a syndicated, subscription service providing ongoing support and up to date market and competitor insights, helping subscribers to develop a successful strategy in the Connected Home energy market.
Delta-ee (www.delta-ee.com) is a specialist distributed energy and heat research and consulting company. Headquartered in Edinburgh and with offices in England and continental Europe, our clients comprise many of Europe’s leading utilities; heating appliance manufacturers; controls companies; policy makers; and investors. Delta-ee provides a range of subscription research services, consultancy and specialist Summits.
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