Residential energy-storage installations in the worldwide have increased dramatically during the past several years, and rapid growth is expected to continue. Residential energy-storage installations even exceeded utility-scale storage installations for the first time, reflecting the high value customers are placing on having their own storage systems.
Several factors have contributed to the rapid uptake of residential energy-storage systems:Rising costs. Because the energy and climate change crises, the per-kilowatt-hour cost of a residential energy storage system decreased dramatically.
Reducing disruption risk. Every time a major hurricane or storm hits, battery-installation rates increase sharply. As a result, storm-affected states have seen accelerating residential battery adoption. Similarly, homeowners in wildfire-prone areas have begun to install home batteries for reliability.
Utility rate structures. Some utilities set prices based on time of use (TOU), such that power prices vary depending on the time of day. Battery-equipped households can now use energy storage to minimize how much power they consume during periods of peak prices.
Solar-plus-storage benefits. Integrated installations of solar and storage equipment cost less and allow even more flexibility in adjusting demand and supply to reflect market rates, potentially reducing the cost of a battery system by more than 25 percent compared with a stand-alone storage pack.
Purchase incentives.Government incentives for installing residential storage can be compelling. Home solar-plus-storage projects are eligible for investment tax credit in some countries, which can bring down the cost of an installed system.
Grid-services payments.Recently, some local utilities have established programs to pay residential energy-storage owners for feeding power from their batteries to the grid during peak demand periods. In return, customers receive compensation, such as a credit on their utility bill.
