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The twentieth version of EnergySage’s Photo voltaic & Storage Market Report provides a complete take a look at the residential photo voltaic and storage sector within the US throughout a turbulent 2024. Drawing from 1000’s of quotes submitted by vetted installers by way of EnergySage’s platform, the report tracks real-time market tendencies throughout pricing, tools preferences, financing, and shopper conduct. For trade professionals already fluent in photo voltaic and power storage dynamics, the 2024 findings paint a nuanced image of contraction, innovation, and regional variability.
Market Contraction Amid Macroeconomic Stress
Residential photo voltaic installations declined sharply in 2024, dropping 31% year-over-year in line with Wooden Mackenzie. This contraction, following years of strong progress, was pushed by excessive rates of interest, subdued electrical energy worth inflation, and vital coverage adjustments — most notably California’s Internet Billing Tariff (NBT), which decreased export compensation for solar-only programs. Regardless of this slowdown, EnergySage information suggests shopper curiosity in clear power stays sturdy, particularly when storage is concerned.
File Low Costs For Photo voltaic & Storage
For the third consecutive six-month interval, the median quoted photo voltaic worth dropped, reaching an all-time low of $2.50/W in H2 2024. Quotes for solar-only programs fell to $2.65/W, whereas solar-plus-storage quotes dipped even additional to $2.40/W — a 7.3% drop from H1 2024. Battery costs additionally hit historic lows, with the median quoted storage worth touchdown slightly below $1,000/kWh for the primary time. This pricing shift is basically resulting from falling tools prices (e.g., a 30% YoY drop in panel costs per Wooden Mackenzie), intensified installer competitors, and rising market adoption of built-in options like Tesla’s Powerwall 3.
“Heading into 2025, photo voltaic and battery costs had by no means been decrease on the EnergySage Market, and for householders, which means extra inexpensive and accessible clear power options. This creates a compelling record-low benchmark to measure towards as we start to see the results of shifting insurance policies and tariffs take maintain this yr.” — Emily Walker, Director of Content material and Insights at EnergySage
Tesla’s Powerwall 3 Redefines Market Dynamics
The Powerwall 3’s launch disrupted each storage and inverter segments. With an built-in hybrid inverter, Tesla’s share of the storage market soared to 63% — the best for any model in EnergySage historical past — and made Tesla the second-most quoted inverter supplier. The nationwide battery attachment charge reached 45% in H2 2024, additionally a report excessive, reflecting the shifting economics and worth propositions below insurance policies like California’s NBT. Tesla’s dominance drove total worth reductions, but in addition raised issues about future provide shortages and reputational dangers stemming from model controversies, each of which can have an effect on 2025 tendencies.
“Tesla’s rising dominance in each storage and inverter quotes displays the market’s urge for food for built-in, all-in-one options. However as issues round availability and model sentiment floor, we’re watching intently to see whether or not this momentum holds or if shopper backlash will start to shift installer and house owner preferences.” — Charlie Hadlow, President and COO of EnergySage
Shifts In Tools: Extra Energy, Fewer Decisions
The trade continues to pivot to higher-wattage panels: in H2 2024, 33% of quotes featured modules rated over 450 W, up from simply 1% a yr earlier. Solely 14% of quotes included modules under 400 W, in comparison with 81% in H2 2023. This shift is attributed to improved module efficiencies, bigger type components, and evolving installer preferences. REC emerged as essentially the most quoted panel model (46% of quotes), overtaking Qcells. On the inverter entrance, Enphase retained the highest spot however misplaced vital share (right down to 53% from 73% in H1), primarily resulting from Tesla’s achieve.
Apparently, installer model loyalty continues to tighten in panel choice, as 41% of installers provided just one panel model in H2 2024. Nonetheless, inverter variety grew, with fewer installers completely providing one model, reflecting a shift in product technique pushed by hybrid programs and battery integration.
Geographic Divergence In Worth & System Measurement
State-level variations in pricing and system traits had been stark:
- Arizona retained the bottom median photo voltaic worth at $1.99/W, whereas Tennessee topped the listing at $3.35/W — a diffusion of $15,640 on an 11.5 kW system.
- The highest photo voltaic states — California, Florida, and Texas — had median costs at the least $0.25/W under the nationwide median, largely resulting from excessive battery attachment charges and Tesla’s market penetration.
- System sizes elevated throughout all prime 10 states, averaging 6.5% progress from H1 to H2. States with excessive electrical energy consumption, like Texas and Florida, quoted the most important programs (~14 kW), reflecting rising dwelling electrification and climate-driven power wants.
Financing: A Shift Towards Low-Price Mortgage Buildings
Excessive rates of interest dulled demand for photo voltaic loans, dropping to 39% of installations nationally, however spurred a shift in mortgage construction preferences. Low-fee, higher-interest loans (≤3% charges) comprised 47% of EnergySage quotes in H2, up from 40% in H1. Installers more and more favor lenders like Local weather First Financial institution, Atmos Monetary, and Credit score Human for providing consumer-friendly mortgage phrases. The commonest financing product in H2 was a 20-year mortgage at 8.49%, signaling that regardless of excessive charges, patrons nonetheless prioritize long-term affordability and early payoff choices.
Storage Adoption Soars Past California
Battery curiosity reached 73% of consumers in H2 2024, and 45% moved ahead with a purchase order, which was greater than double the 22% attachment charge a yr earlier. Whereas California’s coverage adjustments had been a serious catalyst (with its attachment charge reaching 79%), different states adopted swimsuit resulting from rising grid instability, shifting internet metering, and decrease battery costs. Tesla was essentially the most quoted battery model in all 10 prime storage states, even in markets the place Enphase had beforehand dominated. Storage sizes normalized at 13.5 kWh, however pricing and adoption had been closely influenced by regional components.
Warmth Pumps: A Complementary Development
EnergySage additionally reported on its Warmth Pump Market, highlighting rising electrification synergies. Warmth pump prices different considerably by state and system dimension, with ductless programs being more cost effective in older housing inventory markets like Massachusetts. System prices rose sharply above 5 tons, reflecting tools and labor inefficiencies.
Outlook For 2025
The report emphasizes a number of components that would affect the 2025 panorama:
- Tariff uncertainties affecting module provide chains and inverter availability
- Doable backlash towards dominant manufacturers (notably Tesla)
- The increasing affect of built-in power options (photo voltaic, storage, EVs, HVAC)
- Continued evolution of state insurance policies, particularly round internet metering and power resilience
Whereas 2024 marked a setback in put in capability, the structural indicators, resembling value declines, shopper curiosity, and know-how enhancements, recommend a resilient path ahead.
“The information on this report tells a broader story concerning the trade’s evolution. From the rise in storage adoption to the shift towards higher-efficiency tools and decrease prices, we’re seeing householders take higher management over their power decisions.” — Charlie Hadlow
The total Photo voltaic & Storage Market Report 2025 is offered from EnergySage.
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