2025 European Residential Energy Storage Subsidy Policies: Seize the Policy Dividend for Home Energy Independence
As Europe accelerates its transition to a low-carbon economy, renewable energy has become the cornerstone of its energy strategy. Residential energy storage systems, as a key supporting facility for solar photovoltaic (PV) applications, have been vigorously promoted by governments across the continent through generous subsidy policies. For European households pursuing energy independence and cost savings, and for overseas lithium battery manufacturers targeting the European market, understanding the latest 2025 subsidy policies is crucial to seizing market opportunities.
In 2024, the total operating capacity of battery energy storage systems in Europe reached 61.1GWh, and it is predicted that the annual installation capacity will soar to 78.1GWh by 2028 . This explosive growth is inseparable from the policy support at both the EU and national levels. While the EU is advancing unified market rules and eliminating regulatory barriers through initiatives such as the European Grid Package and the Energy Storage Action Plan , various member states have introduced targeted subsidy policies for residential energy storage, making 2025 a golden year for the development of the European home energy storage market.
Hungary: $305 Million Large-Scale Subsidy Program for 10kW Storage Systems
In December 2025, the Hungarian government announced a landmark residential energy storage program with a total budget of 100 billion Hungarian forints (approximately $305.4 million) . This program is specifically designed to support households with existing solar PV systems or plans to install them, aiming to improve the self-consumption rate of solar energy and reduce peak electricity demand in the evening.
Under the program, eligible households can install a 10kW battery energy storage system and receive a non-repayable subsidy of 2.5 million Hungarian forints (about €6,532 or $7,000) . According to calculations, this subsidy can cover a significant portion of the equipment purchase cost, greatly lowering the threshold for households to adopt energy storage systems. The program is expected to support the installation of 40,000 residential energy storage systems, corresponding to a market space of 0.4-0.5GWh .
Notably, the application process has clear priority settings: households that have been excluded from annual balance settlement or will be excluded by 2030 will be given priority, followed by residents in small rural settlements with a population of less than 5,000 . The detailed application guidelines will be released by mid-January 2026, and the application window will open from early February to mid-March 2026 through a user-friendly online platform . Hungary's strong support for residential energy storage stems from its need to accommodate the large-scale integration of new energy (accounting for 25% of its total electricity) and reduce dependence on imported natural gas and coal .
Germany: Combined Federal and State Subsidies, Focus on High-Value Roof Projects
Germany, a leader in the European renewable energy sector, has formed a multi-level subsidy system for residential energy storage that combines federal and state policies. At the federal level, the "Renewable Energies – Standard 270" program offered by KfW Bank provides low-interest loans for energy storage and heating systems, reducing the financial pressure on households to purchase equipment .
At the state level, Berlin's optimized SolarPLUS program has attracted widespread attention. This comprehensive support system covers the entire process from design, installation, and energy storage to grid connection and special building renovations, with a focus on roof-mounted projects (including single-family homes, townhouses, and multi-family residences) . For residential users, the program provides standardized fixed subsidies, simplifying the application process and shortening the approval cycle. Specifically, the subsidy for energy storage systems is approximately €300 per kWh, with a maximum subsidy of up to €15,000 .
A key advantage of Berlin's SolarPLUS program is that it can be叠加 (stacked) with subsidies under the federal Renewable Energy Act (EEG). Even if a project has already received feed-in tariff subsidies under the EEG, it can still apply for installation grants under SolarPLUS, significantly improving the economic return rate of the project . Although the program temporarily suspended new applications due to a surge in demand, it will reopen for a new round of applications on January 8, 2026, presenting a huge market opportunity for lithium battery suppliers .
Malta: Up to 95% Subsidy Coverage for Island Residents, Clear Grant Options
Malta, as part of the EU's clean energy island initiative, launched a new PV and energy storage subsidy scheme (G.N. 302/2025) in 2025, offering generous grants for residential battery storage installations . The scheme distinguishes between different project types and provides tiered subsidies, with particularly favorable terms for battery storage systems.
For residential users who choose to install a hybrid inverter with a battery storage system, the government subsidizes 80% of the battery storage cost (up to €7,200, or €720 per kWh) and 80% of the hybrid inverter cost (up to €1,800, or €450 per kWp) . For users who only install a battery storage system, 80% of the cost is subsidized, with the same maximum limit of €7,200 . Notably, for the first time, residents of Gozo Island can enjoy an increased subsidy coverage of up to 95% for battery storage installations, with a maximum subsidy of €8,550 .
The application period for this scheme runs from February 25 to December 31, 2025 (or until funds are exhausted), and is open to private individuals for residential use . The application process is divided into two phases: pre-installation project declaration and post-installation completion verification, with clear guidelines and forms available on the website of the Regulator for Energy & Water Services (REWS) .
Italy: Adjustments to Tax Incentives, Strengthened Support for Industrial and Commercial Sectors While Optimizing Residential Policies
Italy, which saw a 5.9GWh increase in energy storage installed capacity in 2024, has adjusted its subsidy policies for residential energy storage in 2025 while strengthening support for industrial and commercial projects . Under the latest comprehensive budget bill, the tax reduction rate for residential energy storage installations will be gradually phased down: main residences will maintain a 50% tax reduction in 2025, decreasing to 36% in 2026-2027; other residences will see a reduction to 36% in 2025 and 30% in 2026-2027 . The maximum limit for project expenditures eligible for tax reduction remains €96,000 in 2025 and will be lowered to €48,000 starting from 2028 .
Although residential subsidies are tapering, Italy's overall policy environment still favors the development of the energy storage market. The government plans to launch the first round of auctions under the MACSE (Electricity Storage Capacity Procurement Mechanism) in the second quarter of 2025, aiming to build 72GWh of energy storage capacity by 2030 . Additionally, the "Transition 5.0" program offers increased subsidies for projects using EU-manufactured PV modules, which will indirectly drive the demand for supporting residential energy storage systems .
Key Considerations for Seizing Policy Dividends
For lithium battery manufacturers and distributors targeting the European residential energy storage market, it is not only necessary to understand the subsidy policies of various countries but also to pay attention to supporting regulatory requirements. Firstly, products must obtain CE certification, complying with the Low Voltage Directive, EMC Directive, and safety standards such as IEC 62619 . Secondly, in line with the EU Battery Regulation, products need to meet requirements for carbon footprint declarations, recyclability targets, and digital battery passports . Finally, grid connection standards vary by country, and ensuring compatibility between inverters and battery systems is essential to smooth installation and inspection .
2025 is a year of abundant policy dividends for the European residential energy storage market. From Hungary's large-scale direct subsidies to Germany's combined federal-state support and Malta's preferential policies for island residents, these measures are continuously lowering the threshold for household adoption of energy storage systems and creating huge market demand. For overseas lithium battery companies, grasping the details of these policies, ensuring product compliance, and cooperating with local partners to navigate the application process will be the key to success in the European market.
If you are looking for high-quality, CE-certified lithium battery solutions tailored to the European residential energy storage market, we are here to help. With in-depth insights into European policy trends and market demands, we provide reliable products that meet local standards, helping you and your customers fully leverage policy advantages to achieve win-win cooperation.