Home Battery Market Expected to Match Solar Industry’s Growth

Home Battery Market Expected to Match Solar Industry’s Growth

Home batteries can help builders market a net-zero smart home with a renewable, clean energy source, and a new report shows massive growth in the home battery market.

According to Bloomberg’s New Energy Finance Report, the home battery market will be valued at $250 billion or more by 2040 with new devices and systems expanding the industry into new sectors.

The report also predicts that new home battery devices and accessories will add 25 gigawatts of energy storage by 2028. That’s about the size of the small-scale solar industry now.

Significant growth in the solar industry is being led by three factors–increased adoption of solar panels, an expected price drop for systems and parts in the next few years and the spread of electric vehicles, which is driving up demand for lithium-ion batteries.

This Bloomberg graphs shows how the market will shift toward home batteries and renewable energy sources.
This Bloomberg chart shows how the market will shift toward renewable energy sources by 2040.

Lithium-ion batteries are the main technology used in energy storage devices. A drop in costs and increase in electric cars will allow manufacturers to scale up production and cut costs, because the lithium-ion batteries will be used in a range of devices such as home and car batteries.

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Increased investment of renewable energy sources and systems will help increase the home battery market into the future. According to the report, renewable investments are expected to rise to $7.8 trillion by 2040, compared with $2.1 trillion going into the fossil-fuel market.

The report expects the technology for home batteries will cost around $120 per kilowatt-hour by 2030. This same tech cost more than $1,000 in 2010 and around $300 today for manufacturers to develop.

This significant drop in price will enable builders to include solar and a home battery as standard, which will help builders market efficient, net-zero homes to green-minded homebuyers.

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About The Author

Michael Black is a staff writer and content coordinator at TecHome Builder. He has a particular interest in new solar developments and smart energy systems and is always looking for the next smart home trend to cover. As the youngest member of the TecHome team, Michael brings a passion that keeps the team energized. He also is instrumental in leading our social media efforts.

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