Although home batteries have always had incredible benefits for rooftop solar owners and grid-connected customers alike, sales have always been beat out by utility-scale projects because, well, utilities are huge, and so are their energy storage deployments. But 2018 looks like it’s going to be the year of the home battery. Residential storage numbers were way up in the first quarter of 2018.
“Residential storage has been growing in popularity and prominence,” said Brett Simon, on of the GTM Research’s senior analysts. “It’s getting cheaper. Folds are more aware of it and are asking for it. Solar installers are doubling down on it as a new business model.”
Until this year, home battery sales have always been on the rise, but haven’t quite hit their sweet spot. Now, it’s happening, and it seems that the residential energy storage market is about to boom.
Get ready for the long awaited rise of the home battery.
Keep in mind--it takes a lot of home batteries to hit the numbers that utility-scale projects can make in a single swing. Residential energy storage projects, individually, generally only hit a few kilowatts, so it takes a lot of deployments to rival the capacity of large-scale projects. But their doing it. Micro-projects are hitting the ground by storm.
Where are most of these home batteries hitting the ground? You can probably guess. California and Hawaii have always been frontrunners in the solar plus storage world, and they continue to lead the charge in the growth of home batteries. California’s residential energy sector rose by an incredible 3,833 percent over the previous year megawatt-wise. GTM Research’s Energy Storage Monitor gives us this great visual of how monumental this growth actually is:
Of all the new energy storage deployments in Q1 of 2018, 74 percent of them came from California and Hawaii. And the growth seems to be organic, and gaining momentum, driven by lower prices, more education, and transitions away from solar net metering. It’s very likely that we’ll continue to see even bigger numbers in the second half of the year.
“The residential market this year is going to be over five times the size of the market last year, in megawatt terms,” Simon said.
To boost future numbers even more, California’s Energy Commission recently passed a solar PV mandate for new homes starting in 2020. This uptick in home solar will also drive demand for residential storage in 2020 and beyond.