North America Home Energy Storage Market (2026-2036)
The North America Home Energy Storage Market was valued at USD 3.65 billion in 2025. This market is expected to reach USD 12.95 billion by 2036 from an estimated USD 3.85 billion in 2026, registering a CAGR of 12.9% during the forecast period (2026-2036).
- Published
- Sep 2026
- Pages
- 310
- Format
- PDF + Excel
- Report ID
- MR-2199
- Base year
- 2025
- 2025 · BASELINE
- $3.65B
- 2036
- $12.95B
- CAGR 2026–2036
- 12.9%
2025 baseline · 2026–2036 forecast at 12.9% CAGR · hover a bar for the value
Key highlights
The North America Home Energy Storage Market is projected to reach USD 12.95 billion by 2036, as home batteries evolve from backup devices into grid-connected distributed power plants.
The U.S. is expected to account for the largest market share in 2026, while Canada is projected to register the fastest growth during the forecast period.
Residential storage is accelerating. U.S. residential battery storage grew 51% year over year in 2025, with about 3.1 gigawatt-hours of capacity added, bringing cumulative residential storage deployed in the U.S. to about 9 gigawatt-hours, according to the Solar Energy Industries Association.
By installation type, Solar-Paired New Installations are expected to account for the largest market share, whereas Retrofits to Existing Solar are projected to witness the fastest growth through 2036.
Batteries have become standard with residential solar. Sunrun, which installed about 1.5 gigawatt-hours of the 3.1 gigawatt-hours of U.S. residential storage added in 2025, reported a record storage attachment rate of 71% in the fourth quarter of 2025, up from 62% a year earlier, with more than 237,000 storage and solar systems representing about 4.0 gigawatt-hours of networked storage capacity.
Home batteries are becoming grid resources. Sunrun's battery network dispatched nearly 18 gigawatt-hours of energy to support grids in 2025, with a combined peak output of 425 megawatts, and the company expects more than 10 gigawatt-hours of dispatchable capacity online by the end of 2028.
Report summary
| Particulars | Details |
|---|---|
| Forecast Period | 2026-2036 |
| Base Year | 2025 |
| Estimated Year | 2026 |
| CAGR (Value) | 12.9% |
| Format | PDF, Excel & Cloud Portal · 310 pages |
| Market Size (Value) in 2026 | USD 3.85 Billion |
| Market Size (Value) in 2036 | USD 12.95 Billion |
| Segments Covered | By Battery Chemistry: LFP, NMC, Others (Sodium-Ion, Others). By Storage Capacity: Below 10 kWh, 10-20 kWh, Above 20 kWh. By System Architecture: AC-Coupled, DC-Coupled/Hybrid. By Installation Type: Solar-Paired New Installation, Retrofit to Existing Solar, Standalone. By Ownership Model: Customer-Owned (Cash, Loan), Third-Party-Owned (Lease, PPA, Subscription). By Application: Backup Power & Resilience, Self-Consumption & Time-of-Use Optimization, Virtual Power Plants & Grid Services. |
| Countries Covered | U.S. (California, Texas, Hawaii, Puerto Rico, Florida & Southeast, Northeast, Rest of U.S.), Canada (Ontario, British Columbia, Quebec, Alberta, Atlantic Canada, Rest of Canada). |
| Key Companies | Tesla, Enphase Energy, Sunrun, Generac, SolarEdge, FranklinWH, LG Energy Solution, Panasonic, sonnen, Base Power, Lunar Energy, Canadian Solar (EP Cube), EcoFlow, Anker SOLIX, and Fortress Power. |
Report overview
Segments covered: battery chemistry, storage capacity, system architecture, installation type, ownership model.
The growth of this market is mainly driven by growing demand for backup power as grid outages increase, net billing and time-of-use rate structures that reward storing solar energy, the growing value of virtual power plants and grid services, and falling battery costs combined with rising electricity prices. However, the expiry of the federal residential clean energy tax credit and new sourcing restrictions, high upfront costs, permitting, interconnection, and installer capacity constraints, and tariffs and supply chain risks for imported batteries restrain the growth of this market.
Furthermore, retrofitting batteries to existing solar homes, home electrification and vehicle-to-home integration, and expanding provincial programs in Canada are expected to offer growth opportunities for the stakeholders in this market. However, uncertain compensation and design of utility virtual power plant programs, fire safety codes and insurance requirements, the financial distress of residential solar and storage companies, and consumer financing and protection concerns remain major challenges impacting the growth of this market. Additionally, the rise of storage-first installers, the shift toward third-party ownership, the scaling of residential virtual power plants, and the growth of domestic battery manufacturing are prominent trends in this market.
The North America Home Energy Storage Market comprises battery energy storage systems installed at residential properties in the U.S. and Canada, including battery packs, inverters and power conversion systems, energy management software, and installation. The market covers systems based on lithium iron phosphate, lithium nickel manganese cobalt oxide, and emerging chemistries; capacities from below 10 kilowatt-hours to more than 20 kilowatt-hours; AC-coupled and DC-coupled hybrid architectures; batteries installed with new rooftop solar, retrofitted to existing solar systems, or installed standalone; and customer-owned and third-party-owned systems under leases, power purchase agreements, and subscriptions. Applications include backup power and resilience, self-consumption and time-of-use optimization, and participation in virtual power plants and grid services. Market value is measured at the installed value of systems. Portable power stations without permanent home integration and utility-scale and commercial storage are excluded. The ecosystem spans battery and inverter manufacturers, residential solar and storage installers, financiers, utilities and grid operators, regulators, and homeowners.
Home energy storage has grown rapidly in the U.S. The Solar Energy Industries Association reported that U.S. residential battery storage grew 51% year over year in 2025, with about 3.1 gigawatt-hours of capacity added, bringing cumulative residential storage deployed in the U.S. to about 9 gigawatt-hours, and Sunrun, America's largest provider of home battery storage, deployed about 1.5 gigawatt-hours of the 2025 total, about 48%. Sunrun's storage attachment rate reached a record 71% in the fourth quarter of 2025, up from 62% a year earlier, and its customers received 3.8 million hours of backup power across more than 650,000 outage events in 2025. Adoption varies widely by state: at the end of 2024, Sunrun reported attachment rates of nearly 100% in Hawaii and Puerto Rico, about 89% in California, 66% in Texas, and about 10% in the rest of the country.
Policy is a major driver. California's shift to net billing in April 2023 sharply reduced compensation for solar exports, making batteries essential to capture the value of rooftop solar, and time-of-use rates and outage risks in Texas, Hawaii, Puerto Rico, and other markets have boosted adoption, with SEIA noting that Texas is poised to overtake California in 2026 as the largest U.S. energy storage market. At the federal level, legislation enacted in July 2025 ended the residential clean energy credit for homeowner-owned systems after 2025, while the investment tax credit remains available for storage owned by third parties, subject to new restrictions on components from foreign entities of concern, shifting the market toward leases and power purchase agreements.
Home batteries are increasingly operated as distributed power plants. Sunrun's battery network dispatched nearly 18 gigawatt-hours of energy to support grids in 2025, with a combined peak output of 425 megawatts, and in December 2025 Sunrun closed a joint venture with HASI to finance more than 300 megawatts of capacity across more than 40,000 home power plants. Manufacturers such as Tesla, Enphase, Generac, SolarEdge, FranklinWH, and others are competing on capacity, integration, and software, and Enphase shipped 170.1 megawatt-hours of batteries in the first quarter of 2025, including 44.1 megawatt-hours from U.S. facilities. In Canada, provincial programs, such as rebates in Ontario and British Columbia, and severe weather events are driving adoption from a smaller base.
Market dynamics
19 factors across 5 forcesGrowing Demand for Backup Power
Growing demand for backup power as grid outages increase is a major factor driving the North America Home Energy Storage Market. Extreme weather events, including hurricanes, winter storms, heat waves, and wildfires, have caused prolonged power outages across the U.S. and Canada, such as the February 2021 winter storm in Texas, which left millions of homes without power, and utilities in California and other western states have used public safety power shutoffs to reduce wildfire risk. Home batteries provide quiet, emission-free backup power, and Sunrun reported that its customers received 3.8 million hours of backup power across more than 650,000 outage events in 2025. Resilience is the primary motivation in markets such as Puerto Rico, where Sunrun's storage attachment rate was nearly 100% at the end of 2024, and Texas, where it was 66%. As outage frequency and severity rise, backup power is expected to remain the largest application for home energy storage.
Net Billing and Time-of-Use Rate Structures
Net billing and time-of-use rate structures are significantly increasing the value of home batteries. As rooftop solar penetration has grown, regulators have reduced compensation for exported solar energy and introduced time-of-use rates with high evening prices, making it more valuable to store midday solar generation for use in the evening. California's transition to net billing in April 2023 sharply reduced export compensation for new solar customers, and Sunrun's storage attachment rate in California reached about 89% by the end of 2024, while Hawaii, which moved away from traditional net metering earlier, had attachment rates of nearly 100%. Sunrun cited complicated time-of-use rate structures and utility rate increases, along with outages, as reasons for growing consumer interest in home storage. Similar rate reforms in other states are expected to expand battery adoption beyond California and Hawaii.
Growing Value of Virtual Power Plants and Grid Services
The growing value of virtual power plants and grid services is creating new revenue streams for home batteries. Utilities and grid operators are enrolling fleets of home batteries in programs that dispatch stored energy during peak demand or emergencies, paying homeowners or aggregators for capacity and energy. Sunrun's battery network dispatched nearly 18 gigawatt-hours of energy to support grids in 2025, with a combined peak output of 425 megawatts, and Sunrun reported that in California it installed more storage capacity in 2025 than the next 40 top battery installers combined, according to the California Solar and Storage Association, operating several distributed power plant programs in the state. Sunrun expects more than 10 gigawatt-hours of dispatchable capacity by the end of 2028, and FERC Order 2222, issued in 2020, enables distributed resources to participate in wholesale markets.
Falling Battery Costs and Rising Electricity Prices
Falling battery costs combined with rising electricity prices are improving the economics of home storage. Lithium-ion battery cell prices have fallen substantially as global manufacturing capacity expanded and lithium prices declined by more than 80% from their late-2022 peak, and lithium iron phosphate chemistry, which offers long cycle life and improved safety, has become standard in many home batteries. At the same time, residential electricity prices in many U.S. states and Canadian provinces have risen, and Sunrun noted that utility rate hikes are among the reasons consumers are seeking home storage. Lower costs and higher bills shorten payback periods, supporting growth in the U.S., where residential storage additions reached about 3.1 gigawatt-hours in 2025.
Table of contents
14 chapters · 139 sections · 310 pages · click to expandSegmental analysis
| Segment | Largest share (2026) | Fastest growth (2026–2036) |
|---|---|---|
| By Battery Chemistry | LFP | Rapid growth of this |
| By Installation Type | Solar-Paired New Installation | Retrofit |
| By Ownership Model | — | Rapid growth of this |
| By Application | Backup Power & Resilience | Virtual Power Plants & Grid Services |
By Battery Chemistry
- The LFP segment is expected to account for the largest share of the market.
- The large share of this segment is mainly due to its long cycle life, thermal stability, and adoption in leading home battery products.
- However, the Others segment, including sodium-ion and other emerging chemistries, is projected to register the highest CAGR during the forecast period.
- The rapid growth of this segment is attributed to efforts to reduce costs and dependence on imported lithium-ion cells subject to 25% Section 301 tariffs from January 2026.
By Installation Type
- The Solar-Paired New Installation segment is expected to account for the largest share of the market.
- The large share of this segment is mainly due to high attachment rates on new solar installations, such as Sunrun's 71% in the fourth quarter of 2025.
- However, the Retrofit to Existing Solar segment is projected to register the highest CAGR during the forecast period.
- The rapid growth of this segment is attributed to rate changes, outages, and the large base of solar-only homes that Sunrun describes as a massive untapped market for storage.
By Ownership Model
- The Third-Party-Owned segment is expected to account for the larger share of the market.
- The large share of this segment is mainly due to the expiry of the residential clean energy credit after 2025 and the continued availability of the investment tax credit for third-party-owned storage.
- However, the Customer-Owned segment is projected to register the higher CAGR during the forecast period from its reduced 2026 base.
- The rapid growth of this segment is attributed to falling battery costs, state and provincial incentives, and the recovery of cash and loan purchases.
By Application
- The Backup Power & Resilience segment is expected to account for the largest share of the market.
- The large share of this segment is mainly due to outage risks, reflected in Sunrun customers receiving 3.8 million hours of backup power across more than 650,000 outage events in 2025.
- However, the Virtual Power Plants & Grid Services segment is projected to register the highest CAGR during the forecast period.
- The rapid growth of this segment is attributed to growing utility programs and fleets such as Sunrun's, which dispatched nearly 18 gigawatt-hours in 2025.
Geographic analysis
North America
Largest shareU.S. In 2026, the U.S. is expected to account for the largest share of the North America Home Energy Storage Market. The country's dominance is supported by its large residential solar base, outage risks, net billing and time-of-use rate reforms, and a mature installer and financing ecosystem. U.S. residential battery storage grew 51% year over year in 2025, with about 3.1 gigawatt-hours added, bringing cumulative residential storage to about 9 gigawatt-hours, according to SEIA, and Sunrun deployed about 1.5 gigawatt-hours of the 2025 total. The end of the residential clean energy credit after 2025 and new foreign entity of concern restrictions are shifting demand toward third-party ownership and domestically manufactured equipment. California is the largest U.S. state market for home energy storage. The state's transition to net billing in April 2023 sharply reduced compensation for solar exports, making batteries essential to capture solar value, and Sunrun's storage attachment rate in California reached about 89% by the end of 2024. Public safety power shutoffs to prevent wildfires increase demand for backup power, and California utilities operate distributed power plant programs, with Sunrun installing more storage capacity in California in 2025 than the next 40 top battery installers combined, according to the California Solar and Storage Association. California's Self-Generation Incentive Program, in place since 2001 and later expanded to support batteries, provides rebates for home storage, with enhanced incentives for low-income and wildfire-prone households. Texas is expected to be the fastest-growing U.S. state market. The February 2021 winter storm, which caused prolonged outages for millions of homes, and the state's competitive electricity market with volatile wholesale prices have driven strong demand for backup power and grid services, and Sunrun's storage attachment rate in Texas was 66% at the end of 2024. SEIA notes that Texas is poised to overtake California in 2026 as the nation's largest energy storage market overall, and new entrants such as Base Power are deploying home batteries as a distributed grid resource in the state. ERCOT, which manages most of the Texas grid, has approved aggregated distributed energy resource pilots allowing home batteries to participate in its market, supporting the growth of residential fleets as a grid resource. Hawaii and Puerto Rico have the highest storage attachment rates in the U.S. Island grids with high electricity prices, limited export capacity, and vulnerability to outages make batteries essential, and Sunrun reported attachment rates of nearly 100% in both markets at the end of 2024. Puerto Rico's grid suffered long outages after Hurricane Maria in 2017 and continues to experience frequent disruptions, driving widespread adoption of home solar and batteries, while Hawaii's utility operates battery programs that pay customers for grid support. Hawaiian Electric's Battery Bonus program, launched in 2021, paid customers to add batteries that support the grid during peak hours, and Hurricane Fiona caused an island-wide blackout in Puerto Rico in September 2022, reinforcing demand for home solar and storage, with more than 100,000 rooftop solar systems now installed on the island. Rest of the U.S. The rest of the U.S., including Florida and the Southeast, the Northeast, the Mountain West, and the Midwest, represents a large growth opportunity. Sunrun reported a storage attachment rate of only about 10% outside Hawaii, Puerto Rico, California, and Texas at the end of 2024, reflecting less favorable rates and incentives, but hurricanes in Florida and the Gulf Coast, winter storms in the Northeast, and new state programs, such as battery incentives in Massachusetts and other northeastern states, are expected to increase adoption as rates evolve. Massachusetts' ConnectedSolutions program, operating since 2019, pays customers for battery dispatch during peak events, and Hurricanes Helene and Milton in 2024 caused widespread outages in Florida and the Southeast, strengthening demand for backup power in these markets. However, Canada is projected to register the highest CAGR during the forecast period. The rapid growth of the country is attributed to new provincial incentives, severe weather, and a small current base. Ontario added rebates for home battery storage under its Home Renovation Savings Program in 2025, British Columbia's utility offers rebates for solar and battery systems, and ice storms in Ontario and Quebec and wildfires in western Canada have increased interest in backup power. Alberta's competitive electricity market and Atlantic Canada's storm exposure are also supporting adoption. Ontario's Home Renovation Savings Program, launched in January 2025 and administered by the Independent Electricity System Operator, added rebates for battery storage paired with solar, and a severe ice storm in March 2025 left hundreds of thousands of Ontario customers without power, while Nova Scotia's SolarHomes program, in place since 2018, has built a base of solar homes that could add storage. From a small base relative to the U.S., where 3.1 gigawatt-hours were added in 2025, these programs are expected to support rapid growth. California Texas Hawaii and Puerto Rico Canada
Competitive landscape
The North America Home Energy Storage Market includes battery and integrated system manufacturers, inverter and energy management companies, residential solar and storage installers and financiers, and new entrants focused on grid services. Competition centers on capacity, power output and backup capability, integration with solar and home energy management, software for virtual power plants, safety certification, domestic content, price, financing, and service.
Leading companies are expanding storage-first offerings, building virtual power plant fleets, securing domestic manufacturing and compliant supply chains, and developing financing partnerships, as illustrated by Sunrun's 71% attachment rate, its 18 gigawatt-hours of grid dispatch in 2025, and its HASI joint venture.
The report provides a comprehensive competitive assessment of the leading companies operating in the North America Home Energy Storage Market. The key players profiled in the report include Tesla, Inc. (U.S.), Enphase Energy, Inc. (U.S.), Sunrun Inc. (U.S.), Generac Holdings Inc. (U.S.), SolarEdge Technologies, Inc. (U.S./Israel), FranklinWH Energy Storage Inc. (U.S.), LG Energy Solution, Ltd. (South Korea), Panasonic Holdings Corporation (Japan), sonnen (Shell) (Germany/U.S.), Base Power Company (U.S.), Lunar Energy (U.S.), Canadian Solar Inc. (EP Cube) (Canada), EcoFlow (China/U.S.), Anker SOLIX (Anker Innovations) (China/U.S.), and Fortress Power (U.S.).
- Tesla
- Enphase Energy
- Sunrun
- Generac
- SolarEdge
- FranklinWH
- LG Energy Solution
- Panasonic
- Base Power
- Lunar Energy
- Canadian Solar (EP Cube)
- EcoFlow
- Anker SOLIX
- Fortress Power
Expert perspectives
Home energy storage in North America has reached an inflection point. U.S. residential storage grew 51% in 2025 to about 3.1 gigawatt-hours, attachment rates on new solar have reached 71% at the largest installer, and home batteries are functioning as grid assets, with Sunrun's fleet dispatching nearly 18 gigawatt-hours in 2025. At the same time, the end of the federal residential credit and new sourcing and tariff rules are reshaping business models.
Three structural changes are expected to shape the market through 2036. First, storage will become standard with residential solar and will be added to the large base of existing solar homes. Second, third-party ownership and virtual power plants will turn home batteries into grid infrastructure, with value shifting toward software and grid services. Third, domestic manufacturing and compliant supply chains will become competitive requirements.
For companies planning entry or expansion, the most attractive positions over the forecast period are likely to be found in retrofit storage for solar homes, virtual power plant platforms, third-party ownership and financing, domestically manufactured batteries and inverters, integrated electrification systems, and the Texas and Canadian markets. The principal risks are policy changes, upfront costs, tariffs, and company financial distress.
Customer perspectives
Insights gathered during primary interviews with homeowners, residential installers, utility program managers, and battery manufacturers highlight where priorities are shifting. The following perspectives reflect recurring themes raised across these discussions.
“This reflects resilience and grid services as combined motivations.”
“This indicates the shift to third-party ownership and storage-first selling.”
“This points to virtual power plants' growing role and the need for standardization.”
Frequently asked questions
The North America Home Energy Storage Market, covering the U.S. and Canada, is estimated at USD 3.85 billion in 2026.
Cite this report
Meticulous Research. (2026). North America Home Energy Storage Market- Global Opportunity Analysis and Industry Forecast (2026-2036) (Report No. MR-2199). Meticulous Market Research Pvt. Ltd. https://meticulousresearch.com/reports/north-america-home-energy-storage-market-6882