Americans are Embracing Off-Grid Living -

For years, Americans have been equipping their homes with a multitude of solar panels. Now, they are also incorporating more batteries to store electricity and protect against power outages.

Recent data from Wood Mackenzie and the American Clean Power Association indicates that battery storage in U.S. households surged by 64% in 2024 compared to the prior year, outpacing growth in commercial and utility installations. These systems are now present in approximately half a million homes, collectively holding 3,028 megawatt-hours of electricity.

“The market has essentially doubled in just two years,” noted Wood Mackenzie research analyst Hanna Nuttall. “That’s a remarkable growth rate.”

Homeowners are accumulating power for various reasons, primarily to navigate fluctuating electricity rates and outages. Those with solar installations can store self-generated power, enabling them to run their homes more cost-effectively rather than selling it back to the grid at a lower price.

Solar energy and battery storage function together, with most home batteries linked to solar panels, according to Nuttall.

The decrease in costs for storage systems also plays a role in this trend, as battery manufacturers are shifting to more affordable chemical compositions. Utilities, for example, saw a 16% drop in battery costs over the past year, based on Wood Mackenzie’s findings. Additionally, prices for residential solar systems have fallen to near-record lows.

However, even with the rise in home battery installations, the United States still trails behind Europe. In countries such as Germany and Italy, over 70% of new solar installations for homes include battery storage, with many older systems also equipped. In contrast, around 5.3 million homes in the U.S. have solar setups, yet only about 10% are accompanied by battery storage.

The increase in battery usage is especially noticeable in sunny regions, particularly California and Texas, though it is beginning to spread to the Northeast and Mid-Atlantic regions as well.

“It’s primarily the tech-savvy individuals who are choosing storage,” commented Nuttall. “However, in areas where grid reliability is a concern, we are seeing broader acceptance.”

In Puerto Rico, for instance, homeowners have been investing in battery storage to ensure power availability during hurricane seasons.

Additionally, utilities stand to benefit. As data centers and extreme weather challenges strain power grids, every home battery that stores energy could contribute to alleviating demand spikes. Furthermore, during extreme weather events that disrupt grid segments, fewer frustrated customers inundate power company call centers with complaints.

U.S. grid disruptions are unlikely to diminish in the near future as climate change amplifies wildfires and heat waves. BloombergNEF anticipates that residential storage will continue to rise over the next five years, fueled by more frequent power outages and surging prices during peak demand periods.

However, the growth of battery storage might decelerate if the current administration follows through on its plans to restrict clean energy subsidies. Presently, homeowners enjoy a 30% federal tax credit for solar and battery installation, a remnant of the 1978 oil crisis, extended through the Inflation Reduction Act.

Increased tariffs could also impede battery purchases, as nearly all residential batteries in the U.S. feature imported cells.

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