The Expanding Energy Storage Market

January 12, 2020

Though Americans have relied on grid-supplied power for over a century, the need for backup power has become a more pressing issue for many homeowners throughout the country. Backup generators have historically been the most viable option for those looking to mitigate the potentially harmful effects of an unexpected power outage. Still, another option is becoming more accessible to homeowners in the form of solar battery backup. The 2020s are predicted to see a solar battery boom. So how is this boom coming about, and how can homeowners take advantage of this viable backup power option?

The Growing Demand for Backup Power

With an expected rise in hurricanes for coastal residents that could cause grid disruptions and power outages and wildfire precautionary Public Safety Power Shutoffs in California becoming a real concern, homeowners are looking to take greater control of their power. In addition to these environmental triggers, the next decade will also see a rise in electricity demand from electric vehicles and device charging and the need for reliable energy storage systems. More and more homeowners are looking to diversify and upgrade to more sustainable backup power options, and that also helps reduce the everyday reliance on utilities with rising pricing rates and peak charging periods. 

How Do Solar Energy Storage Batteries Work?

When you combine battery energy storage with a system of solar PV (photovoltaic) panels, your home or business can utilize all of the renewable solar energy it generates, even after the sun has dipped below the horizon. These types of systems are often referred to as off-grid energy storage systems because they can operate independently of the power grid, reducing reliance on the grid.

During peak sunlight hours, a well-designed and professionally installed system of solar panels may generate more electricity than the average home can use. When combined with a solar panel energy storage system, your solar panels can store the excess energy from the sun in a network of batteries that will disperse that clean energy more evenly throughout the day and night, during peak charging and even during an outage. 

Solar Battery Prices Are Continuing to Drop

These types of solar battery storage systems have historically been too expensive to be viable for the average homeowner. However, with advances in solar battery technology, the costs of solar batteries have dropped 76% in the last eight years and could see them hit $100/kWh by 2023. Even as solar savings offered by the Federal Investment Tax Credit are set to end by the year 2022, prices continue to drop for solar panels - 36% in the last five years. Couple this with state rebates and incentives like California’s Self-Generation Incentive Program, the door is open for a continued rise in the energy storage market in the coming decade.

More affordable solar panel batteries and more affordable solar panels also shorten the payback period for the cost of installation. Since these systems can also be installed off of the grid, a solar battery home can theoretically be powered entirely by solar energy, eliminating both grid-supplied electricity costs and the risk of experiencing an unexpected power outage.

The Benefits of Financing Solar Battery Storage with PACE

Solar energy is an integral part of the path to clean energy, as seen in recent California solar news. Battery storage systems help maximize the carbon emission-reducing benefits of solar while protecting homeowners from the impacts of power outages. For this important reason, battery storage systems qualify for the 100% upfront financing of Property Assessed Clean Energy, known as PACE financing. This provides homeowners access to the upfront financing necessary to take advantage of this renewable energy storage technology while spreading out the cost as a line item on your property tax bill. 

What you need to know:

Solar battery storage system requirements for CaliforniaFIRST financing:

  • You must meet the eligibility requirements outlined in the current California Self-Generation Incentive Program (SGIP)
  • A copy of the pulled permit or permit number must be submitted for this product before funding 

Solar battery storage system requirements for RenewPACE financing in Florida:

  • Your storage system must be designed for daily cycling 
  • A copy of the pulled permit or permit number must be submitted for this product prior to funding

Looking for a long-term energy storage solution to keep the lights on during an outage? Take control of your power and ask Renew Financial about financing solar plus storage - apply here.