At-home battery systems are having their moment
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.
