The energy crisis in Europe is escalating again, and the price of electricity is skyrocketing. Household energy storage highlights the economy, and the demand continues to increase.

Zhu Yue, an analyst of power equipment industry of CITIC Jianguo Securities, pointed out in the latest report that the surge in electricity prices in Europe has brought opportunities for household storage. Household storage continues to maintain good economy and become the fastest growing direction of Daxin energy sector.

According to the calculation of China CITIC Construction Investment, when the German residential electricity price is stable at 0.50 euros /kWh, the capital IRR can be as high as 31.4% at the energy storage cost of 1000 euros /kWh, which is very economic.

Under the same circumstances, the cost can be recovered in about 4 years. With the reduction of the energy storage system cost, the investment recovery period will also be significantly reduced.

If the payback period of 8 years is taken as the economic critical point, it will take about 8 years to recover the cost when the residential electricity price is 25 euro cents /kWh. Therefore, CITIC Construction Investment believes that:

When the residential electricity price is 25 euro cents /kWh, it is the economic critical point of the household energy storage system. The higher the electricity price is, the better the economy will be.