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At-home battery systems are having their moment

Alan Neuhauser
Apr 12, 2023
Data: Wood Mackenzie; Chart: Axios Visuals
Data: Wood Mackenzie; Chart: Axios Visuals

Rooftop solar paired with batteries drove a giant leap in residential energy storage capacity last year from 2021, according to a report from Wood Mackenzie,

Why it matters: The at-home battery market proved more resilient to the price swings that hammered much larger grid-scale projects for the utility sector.

Driving the news: Residential energy storage saw steady 4% to 6% growth from Q1 through Q4 last year, per the report.

  • Installed capacity jumped nearly 50% to 1,538 MWh (631 MW) in 2022.

What's happening: Storage rose on the back of solar, as more homeowners invested in rooftop solar systems paired with battery backups.

Zoom in: Residential solar installers have higher margins and buy fewer panels than grid-scale developers, making them more immune to price swings.

  • The lithium-ion batteries used in most at-home storage systems saw prices increase — but not as much as the lithium-ferro-phosphate batteries used for large-scale utility projects, which drove headlines about soaring storage costs.

Between the lines: "Customers crave energy independence and savings from a solar system, particularly as retail power prices increase," Wood Mackenzie said in a report last year.

Of note: The Inflation Reduction Act signed by President Biden last year includes a new 30% tax credit for standalone home battery systems.

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