Vol.2.0 | February 26, 2026
Insights into the U.S. Residential Energy Storage Market
According to authoritative data from Wood Mackenzie and the American Clean Power Association (ACP), the U.S. residential energy storage market exhibits distinct characteristics:
- In Q2 2025, the U.S. energy storage market achieved a record-breaking 608 MW of newly installed capacity, with residential energy storage contributing 132% year-on-year growth.
- Despite macro-level uncertainties in electricity policies, consumer demand remains robust.
- Nearly all major analysis firms have revised downward their growth forecasts for the U.S. energy storage market from 2026 to 2028 due to supply chain constraints. Wood Mackenzie predicts that the cumulative installed capacity of energy storage in the U.S. from 2025 to 2029 will decrease by approximately 20% compared to original baseline estimates.
- Despite short-term setbacks, the long-term growth in electricity demand, driven by AI data centers, manufacturing, and transportation electrification, continues to support the sector. The U.S. Inflation Reduction Act (IRA) provides optimism about the enduring value of clean energy investments, prompting continued large-scale investments.
- The energy storage industry is demonstrating strong adaptability. Companies are actively diversifying their supply chains (shifting away from over-reliance on East Asia, Japan, and Southeast Asia), promoting technological innovation to reduce reliance on specific materials (such as sodium-ion batteries), and vigorously developing energy services and virtual power plant (VPP) businesses that are not dependent on hardware sales.
User Analysis: User Profile & Purchase Motivation
Households installing photovoltaic energy systems are predominantly high-income groups, with a median annual income of approximately $115,000—significantly higher than the U.S. median household income of $75,000. These homeowners, primarily millennials (aged 35–55), exhibit a higher acceptance of new technologies. This demographic is highly concentrated in suburban areas and regions with frequent power outages (such as California wildfire zones and the Houston area in Texas).
80% of users cite “backup power” as the primary reason for purchasing energy storage. The fear of grid collapse outweighs the desire for electricity bill savings. In California, this is a rigid demand, i.e., for “life-saving power.” Increasingly, users are shifting toward high-load-equipped systems capable of powering both regular appliances and water heaters, rather than merely sustaining “partial backup power” for lighting.
Latest Policy Developments
The UK Launches the “Warm Homes Plan”
On January 21, the UK government launched the “Warm Homes Plan” with a £1.5 billion budget. According to the official document, the plan will accelerate the installation of solar photovoltaic (PV) systems in the UK, install photovoltaic and energy storage heat pumps, and provide subsidies and government-guaranteed loans to support household energy storage. This allocation reflects the UK government’s dual goals of addressing “social equity” and achieving energy decarbonization.
Malaysia Releases the Solar ATAP Policy
On January 1, Malaysia officially launched the Solar Accelerated Transition Action Plan (Solar ATAP), which will install rooftop photovoltaic (PV) systems, prioritize their own consumption, and prioritize electricity supply to the grid with surplus electricity (bill credit). Eligible requirements include: being a Malaysian power grid user; not participating in an existing NEM scheme; and being a single-meter user with only electricity purchase or resale arrangements.
Export Tax Rebate Policies for Photovoltaic and Other Products
On January 8, the Ministry of Finance issued the “Announcement on Adjusting the Export Tax Rebate Rate for Photovoltaic and Other Products.” From April 1, 2026, the value-added tax (VAT) export rebate rate for photovoltaic and other products will be abolished. From January 1 to December 31, 2026, the VAT export rebate rate for battery products will be reduced from 9% to 6%. Starting from January 1, 2027, the VAT export rebate for battery products will be abolished.
Price Monitoring
Lithium Ore and Lithium Salts
Recently, the prices of spodumene and lithium carbonate have continued to rise.
| Product | High point | Latest point | MoM |
|---|---|---|---|
| Spodumene (CIF China) | 1,000 | 1,083 | +8.3% |
| Lithium carbonate (battery grade) | 103,400 | 107,800 | +4.24% |
Note: Data sourced from Shanghai Metals Market.
China Market Battery Cells
Recent energy storage cell prices have continued to rise.
| Product | 0.5C | 1C | 2C | 4C |
|---|---|---|---|---|
| Prismatic (LiFePO₄) | 0.465 | 0.485 | 0.500 | +4.8% |
| Cylindrical (LiFePO₄) | 0.430 | 0.430 | 0.430 | +0.0% |
| Pouch (LiFePO₄) | 0.520 | 0.520 | 0.520 | +0.0% |
Energy Storage System Prices in China
Recent price recovery in energy storage systems.
| Product | 0.5C | 1C | 2C | 4C |
|---|---|---|---|---|
| DC-side built-in controller (LiFePO₄) | 0.542 | 0.562 | 0.582 | +4.23% |
| AC-side built-in controller (LiFePO₄) | 0.582 | 0.602 | 0.622 | +3.43% |
| All-in-one integrated system (LiFePO₄) | 0.52 | 0.52 | 0.52 | +0.0% |
Note: Data sourced from Shanghai Metals Market.
Market Outlook
2026–2027 (Adjustment Period)
The market will experience demand fluctuations caused by policy rollbacks. Third-party power station (TPO/PO) leasing models will witness significant development due to their ability to counteract the volatility of commercial TCO (total cost of ownership). These models will effectively manage supply chain risks and deepen their presence in key markets such as California and Texas to navigate the industry downturn.
2028–2030 (Long Growth Phase)
With the maturation of local supply chains and further cost reductions in core energy storage systems, the market will resume robust growth. Virtual Power Plants (VPPs) will transition from functional commercial operations to become a significant source of value for residential energy storage systems. The application of AI in energy management will deepen further.
After 2030 (Maturity Stage)
Residential energy storage is expected to become a “standard feature” in newly built homes. The integrated home energy management system of “photovoltaics + energy storage + electric vehicles + smart home” will become mainstream. Market development will shift from policy-driven to users’ autonomous pursuit of more economical, reliable, and cleaner energy.
