European battery storage installations are expected to jump 78% year on year to 57 GWh in 2026, driven by falling costs, high electricity prices and supportive policies, with Germany, Bulgaria, Italy, the UK and Spain leading growth, according to EUPD Research.

Residential storage remains the strongest growth driver, with installed capacity forecast to rise about 36% to 15 GWh from 11 GWh last year. Germany is expected to record the largest residential additions, followed by Italy, the Netherlands, the UK and Austria.

Growth in Germany and Italy is attributed to mature installer ecosystems and established policy frameworks, while front-of-the-meter projects are driving expansion in the UK and Spain. In Bulgaria, EU economic recovery program are providing momentum across Central and Southeastern Europe.

Chinese suppliers dominate residential storage, with BYD and Huawei accounting for more than 30% of demand, followed by Sungrow and Fox ESS. EUPD said Fox ESS and Sigenergy recorded particularly strong growth in the first half and are expected to rank among leading suppliers for the full year.

The market is shifting from competition based solely on hardware toward integrated and intelligent energy solutions. Large-scale storage projects continue to face grid connection and permitting challenges, but improved market opportunities and policy frameworks are supporting growth in that segment as well.