Americans Embracing Off-Grid Living as a Lifestyle Choice

For many years, Americans have been outfitting their homes with numerous solar panels. Now, they are also integrating more batteries to store electricity and guard against power outages.

According to new data from Wood Mackenzie and the American Clean Power Association, a trade group, battery storage in US homes skyrocketed by 64% in 2024 compared to the previous year, surpassing growth in commercial and utility installations. These storage systems are now found in around half a million homes, collectively storing 3,028 megawatt-hours of electricity.

“The market has effectively doubled in just two years,” stated Wood Mackenzie research analyst Hanna Nuttall. “That’s a significant growth rate.”

Homeowners are accumulating power for various reasons, primarily to bypass fluctuating electricity rates and outages. For those with solar panels, storing self-generated electricity allows them to power their homes more affordably instead of selling it back to the grid at a lower rate.

Solar energy and battery storage are complementary, with the vast majority of home batteries connected to panels, according to Nuttall.

The decline in costs for storage systems also contributes to this trend, as battery manufacturers have shifted to less expensive chemical formulations. Utilities, for instance, experienced a 16% reduction in battery costs over the last year, based on Wood Mackenzie data. Additionally, prices for residential solar arrays have fallen to near record lows.

However, despite the increase in home battery installations, the US still lags behind Europe. In countries like Germany and Italy, over 70% of new home solar installations are paired with batteries, and many older setups are also equipped. In contrast, approximately 5.3 million homes in the US have solar, but only about 10% include battery storage.

The surge in battery usage is primarily seen in sunny regions, particularly California and Texas, though it’s starting to spread in the Northeast and Mid-Atlantic areas as well.

“It’s definitely the more tech-savvy individuals who are opting for storage,” noted Nuttall. “However, in states where grid reliability is a concern, we’re observing more widespread adoption.”

For instance, homeowners in Puerto Rico have been investing in battery storage to maintain power during hurricane season.

There are also benefits for utilities. As data centers and extreme weather stress power grids, every battery that stores energy at home has the potential to slightly reduce demand spikes. Similarly, during extreme weather that disrupts parts of the grid, fewer disgruntled customers flood power company call centers with complaints.

US grid disruptions are unlikely to reduce anytime soon, as climate change intensifies wildfires and heat waves. BloombergNEF predicts that residential storage will continue to rise over the next five years due to more frequent power outages and increased prices during peak demand times.

However, the expansion of battery storage could slow if the Trump administration proceeds with its commitment to limit clean energy subsidies. Currently, homeowners benefit from a 30% federal tax credit for solar and battery installations, a remnant of the 1978 oil crisis, extended by the Inflation Reduction Act.

Increased tariffs could also hinder battery purchases, as nearly all residential batteries in the US utilize imported cells.

© 2025 Bloomberg

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