"Actionable Insights to Fuel Your Growth"

U.S. Residential Lithium-ion Battery Energy Storage System Market Size, Share & COVID-19 Impact Analysis, By Power Rating (3kW-6kW, 6kW-15kW, 15kW-30kW), By Connectivity (On-grid, Off-grid), By Operation (Standalone, Solar), and Forecast, 2023-2030

Last Updated: November 18, 2024 | Format: PDF | Report ID: FBI107571

 

KEY MARKET INSIGHTS

Play Audio Listen to Audio Version

The U.S. Residential Lithium-ion Battery Energy Storage System Market size was valued at USD 896.99 million in 2022. The market is projected to grow from USD 1,198.02 million in 2023 to USD 4,740.62 million by 2030, exhibiting a CAGR of 21.7% during the forecast period.


The growth of the battery storage systems market has been remarkable over the last few years; however, the rapid growth of the residential energy storage sector in the U.S. is outpacing the growth of the commercial and utility battery storage systems market. The U.S. has emerged as the leading global residential energy storage market. Increased adoption of solar energy: with the declining cost of solar panels and advancements in power storage technology, more homeowners are installing solar panels and opting for ESS to store excess energy for later use. Compared to lead acid batteries, lithium-ion batteries are becoming the go-to choice for residential ESS due to their high energy density, long life, and low self-discharge rate.


COVID-19 IMPACT


COVID-19 Pandemic Slackened the Growth of Residential Lithium-ion Battery Energy Storage Systems Installations


The COVID-19 pandemic significantly impacted the residential lithium-ion battery energy storage systems industry, curbing investments and threatening to slow the expansion of key clean energy technologies. The U.S. economy faces unprecedented challenges from the COVID-19 crisis, with millions of Americans suffering from impacts on health, family, and financial conditions. The residential energy storage sector in the U.S. faced several challenges, including canceled shipments of components, travel restrictions, lack of direct customer contact, and reduced demand from end-users. Though this market witnessed substantial growth in 2020 and 2021, it could have experienced immense growth without COVID.


LATEST TRENDS


Request a Free sample to learn more about this report.


Shifting Trends toward Renewable Backup Power to Create Lucrative Opportunities 


Advancing technologies and declining solar system prices empower the trend toward renewable backup power. Residential lithium-ion battery energy storage systems can provide a reliable backup power source during outages, making them increasingly popular. Moreover, combining battery energy storage with solar panels creates lucrative opportunities for residential energy storage system providers. Energy storage with solar panels can manage evening energy ramps, provide black start capability, backup power, and more. It can also reduce electricity prices through arbitrage. As demand and manufacturing have increased to support electric grid applications and energy storage systems, the upfront costs of lithium-ion batteries, the most common type of storage paired with solar, have rapidly decreased.


DRIVING FACTORS


Favorable Government Policies to Upkeep Market Growth


Favorable government policies, including the Self-Generation Incentive Program (SGIP) & Investment Tax Credit (ITC), has been the major growth driver for the U.S. residential energy storage systems market. The SGIP offers reimbursements for installing battery energy storage technology. The California Public Utility Commission (CPUC) has approved over $1 billion in funding by 2024 for SGIP. Apart from that, ITC has been among the major supportive policies for residential & commercial energy storage with solar systems. Moreover, as per the Energy Storage Tax Incentive and Deployment Act (S. 627 / H.R. 1648), ITC can be availed for energy storage systems without solar panels, which are standalone energy storage systems, further stimulating the U.S. Residential Lithium-ion Battery Energy Storage System Market growth during the forecast period.


RESTRAINING FACTORS


Increasing Dependency on China to Challenge Market Growth


The energy market is shifting from conventional fossil fuels to immensely growing renewables. Moreover, residential lithium-ion battery energy storage systems hold significant growth among renewables, and developments in lithium-ion and lead-acid batteries are the primary growth drivers for the energy storage systems market. China is the global leader in the manufacturing of lithium-ion batteries, with more than 60% share, while the U.S. holds around 10%. The U.S. residential energy storage systems market witnessed swift growth in the last few years. As a result, imports of residential ESS have rapidly increased after 2020. South Korea was the most prominent residential ESS supplier for the U.S.; however, the increasing share of imports was seized by China and Vietnam. Considering the ongoing U.S.-China trade war, increasing dependence on China will likely hamper the U.S market growth.


SEGMENTATION


By Power Rating Analysis


To know how our report can help streamline your business, Speak to Analyst


Rising Adoption of Residential ESS with Multiple Batteries Leading to Higher Demand for 6kW -15kW Systems


By power rating, the market is divided into 3kW-6kW, 6kW-15kW, and 15kW-30kW.


Residential lithium-ion energy storage system data is separated based on the total power rating of the system. The 6kW-15kW segment dominates the market. This is accredited to the growing demand for energy and the rising adoption of residential ESS with multiple batteries.


By Connectivity Analysis


Large Number of Grid-tied Households to Reflect Higher Demand for On-grid Residential ESS 


Based on connectivity, the market is categorized into on-grid and off-grid.


On-grid residential lithium-ion energy storage systems tied to the power grid are considered under this segment. Off-grid systems are not connected to grids and are usually in areas with an unreliable or no power grid. On-grid segment will likely dominate the market. This is accredited to a large number of existing on-grid customers.


By Operation Analysis


Declining Solar System Prices to Stimulate Adoption of Solar-paired Residential ESS 


Based on operation, the market is categorized into standalone and solar.


Solar segment dominated the market in 2022 and will likely continue the trend during the forecast period. This is attributed to the declining solar system prices and incentives offered by the government.


COUNTRY INSIGHTS


Geographically, the U.S. Residential Lithium-ion Battery Energy Storage System Market share is studied across the U.S. and California. California is the largest consumer of residential lithium-ion battery energy storage systems in the U.S. and holds more than 50% share of the total market in the U.S. This is accredited to declining solar system prices, rising adoption of renewables, and favorable government policies, including SGIP and ITC.


KEY INDUSTRY PLAYERS


Companies Focus on Mergers & Acquisitions and Partnerships to Gain Competitive Edge


Several residential lithium-ion battery energy storage systems companies compete in the U.S. market, which has grown immensely over the last few years. As California holds the majority share of the residential energy storage market in the U.S., it replicates the similar competitive landscape as the U.S. Tesla and LG Chem constitute the majority of the market share in both the U.S. and California residential markets. However, Tesla is widely considered the dominant player in the market. Its Powerwall product portfolio is one of the U.S. and California's most well-known and widely used residential lithium-ion battery energy storage systems. This is attributed to the early entry of Tesla into the residential energy storage space, which has been investing heavily in developing its energy storage products for several years. This has allowed Tesla to build up a strong brand and reputation for quality and reliability, which has helped it to win over many customers in the U.S.


Some of th Key Companies Profiled:



  • Tesla (U.S.)

  • Generac (U.S.)

  • Panasonic (Japan)

  • LG Chem (South Korea)

  • Enphase (U.S.)

  • Eguana (Canada)

  • Sonnen (Germany)

  • Fortress (U.S.)

  • SimpliPhi (U.S.)


KEY INDUSTRY DEVELOPMENTS:



  • February 2023 - Pramac GmbH, a part of Generac Power Systems, Inc., announced the acquisition of REFU Storage Systems GmbH, a developer of battery storage hardware products for the commercial and industrial market. This acquisition would likely expand Generac’s presence outside of the U.S. market.

  • September 2022 - LG Energy Solution announced its plan to launch a home battery in 2023. The new addition to the portfolio of home batteries is likely to offer a capacity of 10.6 kWh to 35.4 kWh, varying as per the installed battery modules.

  • November 2021 - Panasonic (Panasonic Corporation of North America) announced the launch of its Total Home Energy Solution offering, the EverVolt 2.0.

  • October 2021 - Enphase Energy, Inc., a U.S. based provider of micro inverter-based solar battery systems, announced that it started supplying its Encharge battery storage systems to customers in Belgium. This move is likely to expand its presence in the Europe market.

  • September 2021 - Briggs & Stratton announced the acquisition of SimpliPhi Power, a California-based manufacturer of residential lithium-ion battery energy storage systems. This acquisition would help the company enhance its presence in the market share.


REPORT COVERAGE


An Infographic Representation of U.S. Residential Lithium-ion Battery Energy Storage System Market

To get information on various segments, share your queries with us



The report provides detailed market analysis and focuses on key aspects such as leading companies, product/service types, and leading product applications. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the market's growth in recent years.


REPORT SCOPE & SEGMENTATION















































  ATTRIBUTE

  DETAILS



Study Period



2019-2030



Base Year



2022



Estimated Year



2023



Forecast Period



2023-2030



Historical Period



2019-2021



Growth Rate



CAGR of 21.7% from 2023 to 2030



Unit



Volume (MW), Value (USD Million)



Segmentation



By Power Rating



  • 3kW -6kW

  • 6kW -15kW

  • 15kW-30kW



By Connectivity



  • On-grid

  • Off-grid



By Operation



  • Standalone

  • Solar






Frequently Asked Questions

As per the Fortune Business Insights study, the market size was USD 896.99 million in 2022.

Favorable government policies, incentives, and declining solar system prices are the major driving factors for the market.

Some of the top players in the market are Tesla, LG Chem, and Enphase.

Rising dependency on China for lithium-ion batteries and growing geopolitical tensions between the U.S. and China are expected to restrain the deployment of the product.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts
Speak to an Expert
  • 2019-2030
  • 2022
  • 2019-2021
  • 87
Multi-report Purchase Plan
    A Customized Plan Will be Created Based on the number of reports you wish to purchase
Client Testimonials

“We are quite happy with the methodology you outlined. We really appreciate the time your team has spent on this project, and the efforts of your team to answer our questions.”

- One of the largest & renowned medical research centers based in the U.S. on a report on the U.S. NIPT Market.

“Thanks a million. The report looks great!”

- Feedback from a consultant on a report on the U.S. Beef Market.

“Thanks for the excellent report and the insights regarding the lactose market.”

- Brazil based company specializing in production of protein ingredients.

“I liked the report; would it be possible to send me the PPT version as I want to use a few slides in an internal presentation that I am preparing.”

- Global Digital Services Agency on a report on the Global Luxury Goods Market.

“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”

- U.S.-based biotechnology company focussing on treatment of chronic pain.

“Kudos to your team. Thank you very much for your support and agility to answer our questions.”

- Europe-based provider of solutions to automate data centre operations.

“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”

- India-based manufacturer of industrial and specialty intermediates with a strong global presence.

“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”

- One of the largest cosmetics company in the world.

“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”

- U.S. based startup operating in the cultivated meat market.

“We received the below report on the U.S. market from you. We were very satisfied with the report.”

- Global hearing aids manufacturer.

“I just finished my first pass-through of the report. Great work! Thank you!”

- U.S. based solar racking solutions provider.

“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”

- World’s leading advisory firm.

“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”

- Germany based machine construction company.

“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”

- Japanese manufacturing company of stationery products.

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.
X