HEMS Report 2024

Executive summary

HEMS is the entry point to your future business

01

Since 2022, high electricity bills and energy security concerns in Europe have made home storage and self-generating assets more appealing. From 2022 to 2023, European demand for energy storage capacity more than doubled from 4.5 GW of new installations to nearly 10 GW. Now the question is: how steep will the growth to 2030 be?

02

25% of German homeowners want to install HEMS in the next two years. Their top three reasons: saving on electricity costs, maximizing use of self-generated solar power and being more independent of the power plant market.

03

While the upfront costs of renewable energy assets and a HEMS may give homeowners pause, the long-term financial benefits far outweigh the risks. In Germany, a HEMS solution can take the annual energy costs for a three-person household down from €5,549 (heat, electric, ICE car) to €2,586 – a nearly 50% reduction!

04

Household energy consumers are increasingly embracing sustainable solutions, recognizing the dual benefits of cost savings and environmental stewardship. 89% have expressed an interest in energy independence. 72% want greater transparency when it comes to energy consumption and 66% would switch brands for more in-depth data.

05

Each market in Europe shows different rates of progress in the adoption of energy assets. For example, the Netherlands has the highest PV capacity per capita, while Sweden leads in heat pumps. Different use cases are also emerging, such as time-of-use tariffs, imbalance markets and grid signal integration via Paragraph 14a.

06

More connected assets equal more savings. In simulations conducted between gridX and other partners, the combination of a heat pump, PV and a HEMS allowed single-family households to break-even in as little as 11 years.

Number of European households with HEMS to grow 11-fold by 2030

End users are increasingly drawn to electric assets that use higher loads, such as EVs and heat pumps, because of their ability to deliver energy savings and environmental benefits. From 2023 to 2030, the number of European homes equipped with large electric load appliances is expected to increase by 47%.

Competition is heating up and the landscape is different in every market

‍

Innovative technology, customer desires and the climate crisis have redefined market boundaries. Oil and gas corporations are diversifying to electrify their portfolios and support EV infrastructure. Traditional utility companies are now competing with tech startups and OEMs need to create solutions that support partnerships with other manufacturers and stakeholders in the value chain. Integration across sectors is key to not only promoting sustainability, but revamping supply chains to avoid future bottlenecks, improve customer engagement strategies and comply with regulatory frameworks. And this path to holistic, user-friendly solutions is only possible through integrated ecosystems and greater digitization.

Advanced HEMS makes the difference

It’s not only users who save money with advanced HEMS. By 2035, residential DERs in Germany could cover up to 100 TW hours of annual electricity demand, saving the system 4.8 billion euros per year.

Such flexibility and savings will be unlocked if HEMS shifts from playing a local, passive role to an integrated and active one. This, however, is only possible with a robust, advanced HEMS that lays the foundation for more complex use cases in the future.