For a homeowner, the main factors for investing in solar energy and other solar accessories are grid independence and home resilience. Also, environmental benefits of solar are also there but this may not be the major element for shifting to solar power.
Solar panels, batteries & generators mainly work together to achieve home resilience and make a home grid-independent. Traditionally, home standby generators are for resilience whereas solar + battery storage. They are primarily use to reduce electricity bills.
The research conducted against the backdrop of a total addressable solar residential market. This data is of approximately 77 million homes in the United States. The results showed:
- If the self-generation track is considered, solar currently has a market penetration of 4% of households. It has 3 million systems deployed. At a storage attach rate of 15%, approximately 450,000 systems include storage (1% penetration).
- On the energy resilience front, traditional home standby generators have a 5% market penetration with 3.9 million units sold.
Two Different Perspectives of Homeowners
In the majority of cases, there are two perspectives of homeowners who want to switch to solar.
On the one side, there are homeowners who focus on home resilience. Also, Such people still favor purchasing a home standby generator as backup power in case of a power outage. Unfortunately, this has no effect on their electricity bill or the environment.
On the other hand, A homeowner concerned with utility bill reduction may purchase a solar system first and then add batteries with the expectation of energy resilience during a grid outage. Most homeowners are likely unaware of the resilience limitations of batteries.
The home energy management market in the United States is changing each day. Economic attractiveness is changing utility posture and state-specific incentives. Whereas, resilience requirements are heavily influenced by wildfires, hurricanes, and other extreme weather events. In short, the most potential state markets are the intersection of renewable-friendly and disaster-prone environments.
Hence, Being a solar contractor is an interesting time for you. Solar, battery, and generator equipment manufacturers are pursuing you to align your company with their brand and technology.