Using Incentives to Ramp Up Residential Energy Storage

In a Utility Dive Brief, Guidehouse Insights discusses how disruption is impacting residential energy storage system deployment

The spread of the coronavirus has set back the installation of new residential battery storage systems. However, the long-term outlook remains strong and is being fuelled by utilities offering customer significant incentives. 

In a Utility Dive brief, Ricardo Rodriguez and Jessie Mehrhoff, both research analysts at Guidehouse Insights, discussed the future of residential storage growth and the benefits of utility incentives.  

"Whenever we see any kind of disruption like this, whether caused by extreme weather/natural disasters or big blackouts, there is typically, following those events, greater demand for residential solar+storage," Rodriguez said. "Incentive programs are likely to play a key role in the adoption of the technology."

Through incentive programs, utilities can provide customers with hundreds of dollars per kilowatt of capacity, saving customers $500-$1,500 per year. These programs are key to driving battery storage adoption in the residential sector, passing along some of the upstream value from utilities to customers.  

"Beyond financial incentives, customers recognize that batteries enrolled in utility programs should still have capacity to get them back online in the event of an outage," Mehrhoff said. "Thus, the resiliency associated with batteries may add value to the customer proposition."

Read the Utility Dive Article
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