GTM: Grid-tied residential storage to outpace off-grid deployments in 2017
2017 will be the first ever in which there are more grid-tied residential battery storage system deployments than new off-grid and grid-independent systems in the U.S., according to a new report from GTM Research.
GTM estimates that in 2016, over 4,400 residential battery systems were deployed representing 127 MWh, 86% of which were off-grid or grid-independent backup devices.
But by the end of 2017, GTM expects grid-connected deployments to comprise 57% of the residential market. By 2022, that number could climb to 99% as off-grid and grid-independent backup deployments are expected to remain relatively flat.
Homeowners and utilities are driving a revolution in energy storage, according to GTM’s new report, "U.S. Residential Battery Storage Playbook 2017."
GTM says homeowners are adding energy storage for backup power supply and to save money while utilities are encouraging those efforts as a way of reducing the effect of high solar penetration on the grid.
Local regulations, policies and incentives are also strong drivers, says GTM. To date, residential energy storage has been concentrated in markets that were the first to implement energy storage incentives, such as Hawaii, California, and some Northeast states.
GTM now expects “a confluence of factors,” including falling systems costs and changes in utility rate designs, will drive further growth for the segment.
“It is most instructive to think of the residential battery market not as a monolithic entity, but rather as a patchwork quilt of geography- and homeowner-specific applications that will be stitched together over time,” the authors of the report wrote.
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