Residential Solar Energy Storage Market: Size, Dynamics, global industry analysis and forecast (2024-2030)

The Residential Solar Energy Storage size was valued at USD 9336.14 Million in 2023 and the total Residential Solar Energy Storage Market revenue is expected to grow at a CAGR of 19 % from 2024 to 2030, reaching nearly USD 31549.78 Million.

The residential solar energy storage market has witnessed tremendous growth. Residential integration of solar power generation and highly efficient energy storage systems. These systems help maximize the use of solar energy, wean off the grid, and maintain electricity supply during blackouts.To know about the Research Methodology :- Request Free Sample Report

More than two million solar installations in the US in the year 2023, and it is expected to be doubled in 2023 have turned the attention to the integration of energy storage, signifying a revolution in the energy sector. Solar storage homes focus on energy resilience because grid disruptions render the solar system useless. Commercial properties, for example, depend on demand-driven utility charges, with storage providing reliable remediation for peak energy demand days. The effects of installing residential solar energy storage batteries go beyond customer specifications. To ensure this clean electricity supply, the changing energy system needs a considerable amount of storage. With increasing numbers of residential solar energy systems connecting to the grid, it becomes important to store the energy for later use as the energy is produced simultaneously and this is also during times when other utilities and prices become higher.

Battery storage systems also operate independently giving backup power of a few hours or even days without linking directly to economic benefit through solar integration. The cumulative benefits appearing from the synergy of solar and storage technologies extend beyond outage backup and provision of clean energy just when the grid needs it, not during daylight hours. According to industry experts as well as market analysts, it is envisioned that the future of the residential solar energy storage system is likely to revolve around solar and storage technologies as well. This combination promises a comprehensive and robust energy system.
Residential Solar Energy Storage Market Dynamics
Growing Demand for Energy Cost Savings

The residential solar energy storage market is growing tremendously due to Offset Peak Electricity Costs, One of the main ways that residential solar energy storage assists in cutting energy bills involves curbing spikes in electricity costs. Peak rates for electricity are common during the daytime, especially in the late afternoons and evenings when demand is high. The batteries store the extra solar energy that is generated during the day hours. Such stored energy then be used during peak hours to avoid purchasing electricity at high rates from the grid.

Homeowners use their batteries to store excess energy generated by solar panels during the day while the sun is shining. Subsequently, residential solar energy stores the excess energy during the daytime, while drawing from the stored energy at night when solar generation is minimal or non-existent. The shifting of load decreases dependence on the power grid during the expensive evening hours leading to cost reduction. Net Metering and Feed-in Tariffs, Many regions in the world support net metering as well as “Feed-In” tariffs, for example, when residential solar energy storage market is generating electricity using a solar energy system on-premises, homeowners feed excess energy to the grid in net metering while receiving credits on their monthly electricity bill.

Impact of Grid Instability and Power Outages on Solar Energy Storage Market

There are many areas around the world where there are problems with voltage, brownouts, or blackouts that often take place owing to aging electrical grid infrastructure. This is why grid instability interrupt power delivery to households and might damage the equipment connected to the power system. Increased frequency of storms, hurricanes, and wildfires are some of the extreme weather events associated with climate change. These events are capable of breaking power lines and causing grid instability that causes blackouts.

Sensitive electronic equipment such as computers, refrigerators, and medical devices may break down when power goes up or down a small notch. The use of internal stabilized solar energy storage systems is meant to protect these devices in case of fluctuation of voltage. Apart from being disturbed, power outages are dangerous to health and safety. Such disturbances interfere with vital services including heating, cooling systems, medical equipment, and communication devices. With solar-based energy storage, businesses maintain their vital operations during outages while taking advantage of renewable power sources. Power outages tend to be more frequent in remote and rural areas. The solar electricity storage system proves to be useful for those house owners in isolated locations using distributed energy generation and storage means.
Trends That Are Shaping the Future of Residential Solar Energy Storage Market



Declining Battery Costs
A dominant feature of the residential solar energy storage market is that battery costs keep falling. This has been beneficial to homeowners as it reduced the cost of these systems and so the market grows


Smart Energy Management
With smart technology integration as well as modern energy management systems, homeowners optimize their energy consumption saving costs, which makes solar energy storage systems more appealing


Energy Independence
With the increasing worry about power reliability and energy independence, homeowners are installing solar energy storage as a means of reducing their dependence on the grid and as a backup source in case of blackouts


Environmental Awareness
Many families are also becoming aware of growing environmental consciousness and they are reducing carbon footprint in their homes. The benefits of solar energy storage are numerous and include enhancing energy efficiency


Government Incentives
Government incentives and subsidies like tax credits and rebates have been motivating homes to adopt solar energy storage systems.



Intermittent Energy Production, High Costs, Regulatory Hurdles

The problem arises with intermittent solar energy production for the residential sector. The production of solar panels is not constant as it depends on climatic conditions, sunlight hours, and seasonal variations. This intermittency leads to erratic production of energy where there is peak production during sunny days as compared to night or on cloudy days. The problem of variation in power for residential users relying on solar power is complex. Homeowners need to install energy storage mechanisms for storing surplus sun energy for periods of low production to guarantee uninterrupted electricity supply and reduced dependence on the grid. The major challenge in solar energy production is that it is intermittent. Addressing this challenge as well as harnessing the advantages of residential solar energy storage requires proper system sizing and effective energy management.

The residential sector still confronts the challenge of high costs in solar energy storage. Although the cost of solar panels has reduced, the initial costs of purchasing and installing energy storage systems like batteries have also been increasing and contribute largely to the total system cost. The initial financial barrier is a hurdle for most homeowners, who despite the long-term economic and environmental benefits are reluctant to embrace solar energy storage solutions. The total cost-effectiveness of such systems is influenced by how energy is consumed, local electricity rates, and existing incentive schemes. It is essential to address the cost problem for solar energy storage in residential places to be available to a greater number of consumers and speed up the shift to greener energy sources with reduced costs.

The regulatory obstacle is the biggest barrier hindering the advancement of household solar energy storage. Homeowners and service providers also face a lot of uncertainties as they navigate through the complex and sometimes conflicting array of regulations and policies at the local, state, and federal levels. These may be hurdles like permitting and interconnection requirements, grid access fees, and net metering policies. Potential adopters also face additional problems in choosing an incentive, tax credit, or rebate due to variability in these incentives. It is important to simplify and harmonize regulatory processes so that the maximum benefits of household solar energy storage are realized.
Residential Solar Energy Storage Market Segment Analysis
Based on Battery Type, A solar battery is an important addition to the solar power system. Residential solar energy storage mainly involves the use of batteries as the technology. These ensure there is a continued supply of the same quality power using batteries in which they can store excess electricity generated by solar panels. Battery technology dominates the solar energy storage market. The residential solar energy storage market is dominated by lithium-ion batteries, accounting for an overall 70 % of the share in 2023, which represents most installations. This is due to their high energy density, efficiency, and comparatively longer cycle life—the most widely preferred lithium-ion battery it offers well-established technological performance. Lithium-ion batteries used for home solar applications are composed of the same chemicals utilized to produce lithium-ion batteries used in mobile phones, laptops, and electric vehicles. Tesla Powerwall and sonnenCore lithium-ion solar batteries have a compact design, more DOD, and longer life expectancy than lead-acid batteries.

The residential solar energy storage market also employs lead-acid batteries accounting for over 20 % of the market share in 2023, although the most common type used are lithium-ion. Compared to their energy efficiency and longer cycle lifetime, they are low in their initial costs. For budget-conscious buyers and specific applications, this sub-type is preferred. Lead-acid batteries are like the common car battery and have been used for decades as a solar storage option, although they are rarely used today apart from DIY projects. Compared to other solar battery types, lead-acid batteries are considerably cheaper, and yet have a shorter life and Depth of Discharge rating.

A new sub-type called flow batteries is rapidly increasing in residential applications valuing 7% of the market share in 2023. They have attributes like scalability, long cycle life, and safety. Compared to other types of batteries, flow battery has a smaller market share and grow as the technology matures and costs reduce. The flow battery is a new kind of battery in which a water-based electrolyte flows between battery cells or tanks. These types of batteries have very long lives, lasting even up to 30 days. They are increasing in popularity since they be extended as much as desired by just adding more tanks.

Other Storage Technologies, Batteries constitute the largest market share although other technologies with a relatively small market share exist like thermal energy storage and flywheels. The smaller segment includes other battery technologies such as nickel-cadmium (NiCad) and sodium-ion batteries. This battery market owning 3 % of the market share in 2023. All these technologies are yet to reach the commercialization phase.
Residential Solar Energy Storage Market, 2023 by Power Rating (%)
Residential solar energy storage systems apply thermal which owns 0.3 % of the total market that converts excess solar energy into heat for later reuse. This sub-type is a niche with a high market share and is widely applied for heating and cooling. Flywheel Energy Storage (0.2%): Another growing technique in energy storage is known as flywheel energy storage, which entails storing kinetic energy for subsequent use. It has greater reliability and quick response times, it has a relatively low market share in domestic applications.

Based on Utility Type, Grid-Connected Residential Solar Energy Storage Market, covers household energy storage systems that are mostly linked to a grid. Their main aim is to increase energy self-consumption and optimize electricity expenses, by storing additional solar energy during oversupply and using this energy during periods with high demand or low solar generation. Homeowners obtain a reliable and resilient backup source of power through grid-connected systems during grid outages.

Residential solar energy storage systems are intended to work with the utility grid. They are comprised of solar panels, the inverter, and the battery storage unit. Most solar panels produce more power than they need when the sun is out, so much excess energy is fed into the battery. At night and when it is cloudy, homeowners supplement such solar power by charging the battery or the utility grid. This setup offers benefits, which solar energy be used to power the homes of homeowners thus cutting down power from the grid and hence reducing utility bills. Grid-connected solar storage systems supply temporary backup power in case of a grid outage thus improving energy resilience by keeping critical appliances running. Excess electricity generated by homeowners sold for credits or payments through a net metering or feed-in tariff program, if applicable for a particular region.

Off-grid residential Solar Energy Storage market, a standalone system that is not affiliated with the main utility grid is referred to as an off-grid system and is commonly used in remote places where grid access is either expensive or unavailable. They are fully operated using solar energy generation as well as energy storage for household energy needs. Although off-grid systems promote autonomy, they require extensive storage capacity and backup measures.

A standalone off-grid residential solar energy storage market system is free of the utility grid. Solar panels coupled with a charge controller, battery storage, and an inverter are some of these components. Off-grid systems are specially designed to provide power to rural homes where grid access is not available or too expensive. Key characteristics include, Household off-grid systems operate using solar energy generation and battery storage as their only sources. They offer reliable power supply to remote as well as off-grid areas. Batteries of appropriate capacities are needed in off-grid systems since they store excess solar energy during the day for use at night time or when there is bad weather. Uninterruptible power depends on the battery capacity. In some instances, backup generators including diesel or propane may be included in off-grid systems for providing much power in days with little solar generation. To avoid running out of stored electricity before the next solar generation, off-grid homeowners must be careful in their energy use.
Residential Solar Energy Storage Market Regional Insights:
North America is the largest market for residential solar energy storage, accounting for over 45% of the global market in 2023, this is due to the high adoption of solar energy. According to the MMR analysis, North America has one of the highest rates of residential solar energy storage market adoption in the world. This is creating a large demand for residential solar energy storage systems. Many governments in North America offer financial incentives for residential solar energy storage systems. These incentives make solar energy storage systems more affordable for homeowners. Electricity prices in North America are relatively high, making solar energy storage more attractive to homeowners.

According to the MMR analysis, Europe is the second-largest market for residential solar energy storage market, accounting for over 25% of the global market in 2023. The European market is being driven by a growing demand for self-reliance, Homeowners in Europe are increasingly interested in becoming more self-reliant and less reliant on the grid. The residential solar energy storage market help homeowners achieve this goal. Governments in Europe offer feed-in-tariffs, net metering, subsidies, and grants for residential solar energy storage systems. This support is helping to drive the growth of the European market.

Asia Pacific is the fastest-growing market for residential solar energy storage, accounting for over 20 % of the global market in 2023 according to MMR analysis. The Asia Pacific market is being driven by the solar energy in Asia Pacific is growing rapidly, and this is driving the growth of the residential solar energy storage market. Energy costs in Asia Pacific are rising, making solar energy storage more attractive to homeowners.

The residential solar energy storage market is expected to grow significantly in the coming years, driven by factors such as increasing demand for self-consumption and energy independence, declining battery costs, and supportive government policies. North America is the largest market for residential solar energy storage, followed by Europe and Asia Pacific. The key trends in the market include increasing demand for self-consumption and energy independence, declining cost of battery systems, and government incentives.
Competitive Landscape
Residential Solar Energy Storage market, one of the growing sectors in the energy industry, is expected to witness a trend in the coming period. It is expected that the total market opportunity in the Residential Solar Energy Storage market to reach USD 31549.78 Mn. by 2030. As per the key findings of the Residential Solar Energy Storage Market report, the market has great potential and is being driven by investment in the industry by the corporate sector, government supports, and continuously increased demand from all part of the world.

Homeowners with the desire for more energy autonomy and electricity during grid disturbance now favour energy storage systems. Demand is being driven by the latest increase of the federal investment tax credit (ITC) to 30% for solar systems and standalone battery storage. Some states such as California, Hawaii, Illinois, Maryland, Massachusetts, and Oregon are now providing battery incentives. 2023 is expected to become a breakthrough year for battery storage in different markets starting with residential projects as well as ending up in big-scale storage. This is optimistic news for the residential storage market as it avert a sudden downturn in residential solar plus storage installations that was initially scheduled for 2024. Also, the standalone storage ITC support retrofitting homes that already have solar.

Key Players of the Residential solar energy storage market profiled in the report are In August 2022, Tesla partnered with Green Mountain Power (GMP), for the deployment of powerwalls, that is Tesla’s home battery pack, and in a decentralized way with electric utilities. In September 2022 BYD Company partnered with Victron Energy to find out the compatibility BYD premium LVL/LVS and Victron inverters/ chargers which was completed. This provides huge opportunities to serve many End-users and customers and expand the residential solar energy storage market.
Residential Solar Energy Storage Scope: Inquire Before Buying



Global Residential Solar Energy Storage Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 9336.14 Mn.


Forecast Period 2024 to 2030 CAGR:
19%
Market Size in 2030:
US $ 31549.78 Mn.


 Segments Covered:
by Battery Type
Batteries
  Lithium-ion Batteries
  Lead-Acid Batteries
  Flow Batteries
 Other Battery Technologies
Other Storage Technologies
 Thermal Energy Storage
  Flywheel Energy Storage


by Utility Type
On-grid
Off-grid



Residential Solar Energy Storage Market
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Residential Solar Energy Storage Key Players:
1. Tesla
2. Panasonic Holdings Corporation
3. BYD Company Ltd
4. Enphase Energy
5. Sonnen GmbH
6. VARTA AG
7. Delta Electronics, Inc
8. Huawei Technologies Co., Ltd
9. Eaton
10. SMA Solar Technology AG
11. LG Energy Solution
12. GoodWe
13. E3/DC
14. Alpha ESS Co., Ltd
15. RCT-Power
16. SOLARWATT
17. SENEC
18. Shanghai PYTES Energy Co., Ltd
19. Pylon Technologies, Co. Ltd
20. Victron Energy
21. Dyness
22. TESVOLT AG
23. Turbo Energy – Solar Innovation
24. BST POWER LIMITED
25. WeCo srl
26. Powervault

Frequently Asked Questions:

1. Which region has the largest share in Global Residential Solar Energy Storage Market?
Ans: North America region held the highest share in 2023.

2. What is the growth rate of Global Residential Solar Energy Storage Market?
Ans: The Global Residential Solar Energy Storage Market is growing at a CAGR of 19% during forecasting period 2024-2030.

3. What is scope of the Global Residential Solar Energy Storage Market report?
Ans: Global Residential Solar Energy Storage Market report helps with the PESTEL, PORTER, COVID-19 Impact analysis, Recommendations for Investors & Leaders, and market estimation of the forecast period.

4. Who are the key players in Global Residential Solar Energy Storage Market?
Ans: The important key players in the Global Residential Solar Energy Storage Market are – Tesla, Panasonic Holdings Corporation, BYD Company Ltd, Enphase Energy, Sonnen GmbH, VARTA AG, Delta Electronics, Inc, Huawei Technologies Co., Ltd, Eaton, SMA Solar Technology AG, LG Energy Solution, GoodWe, E3/DC, Alpha ESS Co., Ltd, RCT-Power, SOLARWATT, SENEC, Shanghai PYTES Energy Co., Ltd, Pylon Technologies, Co. Ltd, Victron Energy, Dyness.

5. What is the study period of this Market?
Ans: The Global Residential Solar Energy Storage Market is studied from 2018 to 2030.