A lot of people still see residential battery storage as a niche technology for off-gridder or wealth, tech-savvy homeowners. However, in the U.S., installations of home battery systems more than doubled from 2020 to 2021, according to analysts at Wood Mackenzie. California led the charge, but interest is expanding nationwide as utilities introduce time-of-use pricing and more extreme weather events increase demand for backup power. Australia and Germany also saw steep growth, thanks to strong rooftop solar adoption and supportive government incentives. In Germany, over 300,000 households were estimated to have battery systems installed by the end of 2021. Meanwhile, Australia saw nearly 30,000 new residential battery units deployed last year—a record.
Okay, the numbers still have a long way to go but whether it’s wildfires in California, polar vortexes in Texas, or summer, the past few years have shown us that the centralized grid system is under stress. Consumers are looking for solutions—and residential batteries are quickly becoming one of the most attractive options.
The drop in lithium-ion battery prices over the last decade is the game-changer here. Even with pandemic-related supply chain hiccups in 2021, residential battery systems are now more accessible than ever. Tesla’s Powerwall remains the household name, but a growing list of competitors—LG Energy Solution, Enphase, Sonnen, and BYD, among others—are making the market more competitive. In fact, solar companies are increasingly bundling batteries with panel installations as standard, especially in regions where blackouts are becoming more common.
Policy is also starting to catch up. While battery storage was once excluded from many renewable energy incentive programs, that’s changing. In the U.S., homeowners installing solar-plus-storage setups can still benefit from the federal Investment Tax Credit (ITC), and lawmakers are pushing for standalone battery systems to qualify as well. States like California and New York have also introduced rebates or subsidies for residential batteries, particularly for low-income households or those in wildfire-prone areas.
Beyond backup power and bill savings, home batteries are part of a broader transformation in how energy is managed. As utilities experiment with virtual power plants—networks of small batteries that can be tapped during peak demand—homeowners are starting to play a bigger role in the energy system. This decentralized model not only increases grid resilience but also unlocks new revenue streams for participants. It’s early days, but personally I’m really liking the trend – especially for its implications for the nickel sector and other battery metals.
Anthony Milewski
Chairman, Nickel 28 Capital
