Home battery demand surges—but a new GOP bill could stall momentum

Nearly half of solar shoppers on the EnergySage Marketplace added batteries to their solar panel system purchases in the second half of 2024, according to EnergySage Intel’s Solar & Storage Marketplace Report. The battery attachment rate hit 45%—more than doubling year-over-year—and expressed interest in storage reached an all-time high of 73%.

This surge in demand is closely tied to evolving energy policies and market dynamics, particularly in California, the longtime leader in U.S. solar and storage. The state’s 2023 transition to its latest Net Billing Tariff (NEM 3.0) drove a 72% increase in its battery attachment rate and encouraged other states to adopt similar, less consumer-friendly net metering policies. Grid instability, severe weather, and falling battery prices also fueled residential energy storage growth nationwide.

Until recently, the battery market was expected to maintain that momentum—which is particularly important as we continue to rely on an old power grid while increasing our electricity use. In an EnergySage survey fielded at the end of 2023, contractors projected that residential battery installations would grow by an average of 44% annually over the next three years. 

However, the return of the Trump administration has cast a shadow over the industry, introducing policy uncertainty that’s already beginning to cloud the outlook for continued storage growth.

The battery attachment rate on the EnergySage Marketplace—the percentage of selected solar quotes including a battery—more than doubled year-over-year in the second half of 2024. Specifically, 73% of EnergySage shoppers indicated interest in adding a battery to their solar panel system, and 45% chose a quote that included one.

This surge in battery demand largely aligns with evolving net metering policies. Since California introduced NEM 3.0 in 2023—a less consumer-friendly version of its solar buyback policy—more homeowners have opted to install batteries with their solar panel systems rather than sending their excess solar production to the grid at an unfavorable rate. EnergySage data reflects this trend nationwide: The states with the highest share of battery-interested shoppers—Hawaii, Tennessee, Alabama, Indiana, Georgia, and California—all fall short when it comes to solar buyback programs. 

Homeowner-reported motivations also support this shift. On the EnergySage Marketplace, utility bill savings remained the leading reason for battery interest in the second half of 2024, cited by 33% of shoppers.

Beyond net metering, grid instability and lower battery prices have also contributed to the growth in energy storage adoption in recent years. While resilience remained a key motivator heading into 2025, the price advantage may diminish as federal support for clean energy programs wavers.

Energy storage systems have become more abundant and affordable in recent years, largely thanks to clean energy incentives established under the Biden administration’s 2022 Inflation Reduction Act (IRA). The IRA provided unprecedented business certainty for various clean energy industries, spurring $422 billion in private-sector investments and creating more than 400,000 new jobs in less than three years.

“The IRA provided long-term certainty for all clean energy sectors by making tax incentives available for ten years or longer,” Kristina Costa, former White House advisor, said to EnergySage. “From that, we saw the private sector respond in an enormous way.”

At the heart of this growth are clean energy tax credits. For homeowners, the Investment Tax Credit (ITC) covers 30% of the cost of installing battery storage, saving the average American over $4,000. 

Before the 2024 Presidential election, the battery market was on track for continued expansion: More than 90% of installers surveyed by EnergySage in Q4 2023 anticipated their annual battery installations would grow by an average of 44% over the next three years.

Installer expectations for battery installation growth (3-year outlook)

But that momentum now faces serious threats. Under current law, the ITC will begin to phase down in 2032 and end by 2034. However, the GOP reconciliation bill aims to repeal the ITC for homeowners as early as the end of this year, cutting short a program designed to last a decade. 

On EnergySage, battery prices hit an all-time low median of $999 per kilowatt-hour (kWh) in the second half of 2024—but most installers still say they’re too expensive. That’s according to EnergySage’s latest Contractor Survey, which polled roughly 150 installers in Q1 2025. While the full report has not yet been published, early findings reveal that 64% of installers point to high battery costs as the main roadblock that keeps their companies from selling more storage alongside solar. 

If the tax credit is cut at the end of 2025, battery energy storage systems would become significantly more expensive to produce and install.

On the manufacturing side, the Advanced Manufacturing Production Credit jump-started a domestic manufacturing boom, increasing production capacity and reducing costs across the board. This provision will likely survive the budget reconciliation bill with modifications, but new provisions targeting “prohibited foreign entities”—primarily China—would disqualify most battery products from eligibility. Since the U.S. battery industry still heavily depends on Chinese components and critical minerals, these changes would have sweeping consequences.

“We can expect a lot of investments in the manufacturing sector to dry up, not only because they’re proposing to put onerous new red tape restrictions on the tax credits supporting manufacturing, but also because their customer base will dry up,” Costa said. 

To be effective, policy needs to strike a balance between encouraging domestic manufacturing and recognizing current market realities. A sudden, sweeping restriction risks derailing progress, as the U.S. lacks the infrastructure to produce entirely domestic batteries at scale. If passed as written, the GOP bill would increase battery prices and dampen demand, significantly stalling the energy storage industry’s growth.

Energy storage’s momentum is meeting a political reckoning. Congressional proponents of the “Big, Beautiful Bill” aim to send it to the President’s desk by the Fourth of July. However, thanks to the clear economic advantages of clean energy, there’s a chance that bipartisan support for tax credits in the Senate could block or soften the House version of the bill.

If you’re concerned about the potential economic and environmental consequences of rolling back clean energy incentives, now is the time to act. Contact your elected officials—call, write, or speak out on social media. Personal stories and public pressure can influence policy outcomes. Your voice matters in protecting access to affordable, reliable, clean energy.