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Exploring the Surge in Residential Solar-plus-Storage

The residential solar-plus-storage market has seen significant growth in recent years, driven by factors such as the need for resilience and the reduction of net metering programs. Wood Mackenzie, a leading market research firm, has launched its US Distributed Solar-plus-storage Leaderboard to track this evolving market. Their findings reveal that in Q3 2023, 11% of residential solar installations and 5% of non-residential solar installations are now paired with storage.

Top Contenders in the Market


While there has been a surge of new players in this market, the Wood Mackenzie report highlights that only three vendors have consistently held an average of 80% of the market share from 2018 to Q3 2023: Tesla, LG, and Enphase. However, the landscape is evolving as new contenders emerge, offering comprehensive solutions and posing a challenge to the market leaders.


Max Issokson, a research analyst at Wood Mackenzie and author of the report, states, "These companies have long dominated the market, but they are now facing competition from new entrants. In 2018, Tesla and LG products accounted for 96% of residential solar-plus-storage installations, but by 2023 Q3, this figure dropped to 65%."


Leading the Pack



Currently, Tesla holds the top spot in Wood Mackenzie's residential solar-plus-storage rankings, commanding a market share of 30.2% in 2023 Q3. Sunrun follows closely behind at 20.5%, with SunPower securing a market share of 4.6%.


More Players Joining the Race


The increase in residential solar installations, thanks to the Inflation Reduction Act, has paved the way for new entrants to capitalize on the market. This legislation has boosted the Investment Tax Credit to 30% through 2032, creating more opportunities for homeowners to adopt solar solutions. Notably, established energy equipment companies like SunPower, Generac, and SolarEdge have quickly risen to prominent positions on the Leaderboard.


Enphase Energy, renowned for its microinverters, has also ventured into the residential storage business. The company is eyeing the lucrative California residential solar market with its cutting-edge Enphase Energy System, which integrates the IQ Battery 5P. In April, the California NEM 3.0 policy came into effect, resulting in a substantial reduction of payments for excess solar production sent to the grid. Enphase claims that its system is well-optimized to support the new NEM 3.0 rules, enabling users to maximize self-consumption and export energy at the most opportune times, thereby maximizing their value.


Maximizing Value with the New IQ Battery 5P in California's Top Market


California has long been recognized as one of the leading markets for solar energy, and according to Infinity Energy CEO Bryson Solomon, this remains true. The recent introduction of the IQ Battery 5P offers homeowners the opportunity to maximize their solar system's value under the state's new net metering rules.


The Consolidation of the Solar-Plus-Storage Market


A recent report from Wood Mackenzie highlights the consolidation of the solar-plus-storage market, particularly in comparison to residential solar installation. In the residential solar-plus-storage market, the top five players hold 59% of the market share, whereas in residential solar alone, these top five players only hold 24%, as noted by Issokson.


Entering the Market: Residential Offerings from Other Companies


Despite the dominance of the top five players, other companies have entered the market with their residential offerings. Notable companies include FranklinWH, SMA, and Schneider Electric, which aim to provide innovative solutions to homeowners.


Franklin Whole Home (WH) System: Empowering Homeowners



FranklinWH has introduced the Franklin Whole Home (WH) system, which features an integrated battery and control system. The system, launched in 2022, boasts built-in adaptive learning algorithms and is compatible with various inverters. It also comes EV charger ready and can transform a home into a micro-grid during grid outages. FranklinWH has made remarkable progress quickly and ranks eighth among national manufacturers, according to the Wood Mac report.


SMA: A Smart Energy Solution



Inverter specialist SMA has recently unveiled its residential energy storage solution, which includes the Sunny Boy Smart Energy hybrid inverter. This system offers homeowners greater control over their energy usage, with the option to equip it with SMA's Backup Secure feature. This feature enables efficient energy management, directing power to specific appliances when needed.


Schneider Electric: Simplifying Energy Management



Schneider Electric's residential system, known as the Schneider Home platform, is an advanced energy management system (EMS) that seamlessly integrates energy endpoints and household appliances into a single interface. Users can conveniently monitor their energy consumption and control household appliances from a smartphone application. Notably, Schneider's system allows users to prioritize power during outages, ensuring essential appliances remain functional.


By introducing the IQ Battery 5P into California's thriving solar market, homeowners can enhance the value of their solar systems. The growing consolidation in the solar-plus-storage market indicates the increasing potential and importance of energy storage solutions. As other companies enter the market with their offerings, homeowners have a broader range of options to choose from. FranklinWH, SMA, and Schneider Electric are among the companies providing innovative solutions to empower homeowners, offering advanced features and greater control over energy usage. With these developments, the residential solar-plus-storage market in California continues to evolve, providing homeowners with more choices and opportunities to optimize their solar investments fully.


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