Highlighting Toyota's Novel Venture into Residential Battery Operations

Toyota Introduces Home Battery System Amidst Growing Need for Energy Independence

In the aftermath of the September 2019 typhoon that left up to 930,000 homes without power in the Kanto region around Tokyo, the importance of a stable power supply has become increasingly apparent. This event may have spurred the demand for home battery systems, such as the O-Uchi Kyuden System recently introduced by Toyota.

The O-Uchi Kyuden System, launched on August 24, 2022, is a home battery designed to ensure a steady electricity supply for an entire household, even during power outages. It can be connected to solar panels to charge during the day and provide power at night. With a rated capacity of 8.7 kWh and an output of 5.5 kWh, the system offers a practical solution for energy independence and emergency use.

Toyota's entry into the home battery market comes as the Japanese solar power market reached a turning point in 2019, as 10-year contracts under the Feed-in Tariff (FIT) system started expiring. This shift has led to a surge in the home battery market, with the number of units almost doubling from 70,000 in 2018 to 127,000 in 2020 due to the need for smart electricity management.

By 2019, Japan had become the leading major nation in the rate of solar power generation by land area, with 2.7 million private homes installed with solar panels. Under the FIT system, households were able to sell their excess solar power back to the grid at a fixed and profitable price for the first ten years. However, as the buy-back period ends, the purchase price will fall to about one-sixth of its former price, from 48 yen per kWh to 8 yen.

The O-Uchi Kyuden System stands out among other Japanese home battery systems due to its focus on resilience, ease of use, and integration with renewable energy sources. As the number of former FIT households is forecasted to reach 2.42 million by 2030, the need for such a system is likely to grow.

Moreover, the recent spread of electrified vehicles has revealed a new role for cars in times of disaster: supplying power. However, many people are not fully aware of this new feature. As we move towards a more sustainable and resilient future, it is crucial to educate ourselves about the various technologies available to us, such as the O-Uchi Kyuden System, and how they can help us navigate through unexpected events.