The solar-plus-storage market is evolving rapidly and will look completely different a decade down the road. What can we expect on the way to 2030? Here are 10 predictions.
All-in-one systems will be the new normal
- Lots of storage
Batteries will be incentivized or mandated for practically every new solar PV system across the U.S. by 2025. As more homeowners and businesses deploy PV systems to reduce their electricity bills and ensure backup power, simple net metering will increasingly be replaced by time-of-use rates and other billing mechanisms that aim to align power prices with utility costs. We already see these trends in California and several states in the Northeast.
1. System costs will increase with the shift toward batteries
Solar systems with batteries are going to be about twice as expensive as traditional grid-direct installations, so in that sense, we will see actual costs increase as the mix shifts toward batteries. But while system costs will go up, we need to be careful to parse the actual equipment and soft costs from the consumer’s cost net of tax credits and incentives. Equipment costs for batteries and other hardware are generally flat to slightly down.
2. More battery and inverter packages from the same brand
Since the battery represents the dominant cost in an energy storage system (ESS), inverter companies will increasingly offer branded batteries. In turn, inverter companies packaging third-party batteries will eventually make way for savvy battery companies that can package the whole system.
3. Energy storage systems treated like heat pumps and air conditioners
California’s new Title 21 requirements make solar PV systems standard issue, and we can expect a future update to do the same for energy storage. By then, builders will be able to choose the ESS line they want to work with, and the whole process will look almost exactly like it does for home mechanical appliances like water heaters and HVAC systems. The only question will be whether the ESS is packaged with solar panels or kept separate.
Recent Comments