Residential Energy Storage Market Report 2026

The residential energy storage market size has grown rapidly in recent years. It will grow from $1.08 billion in 2025 to $1.25 billion in 2026 at a compound annual growth rate (CAGR) of 16.4%. The growth in the historic period can be attributed to early adoption of rooftop solar systems, rise in household power outage concerns, declining cost of lithium ion batteries, increased utility time of use pricing programs, emergence of residential energy independence trends.

The residential energy storage market size is expected to see rapid growth in the next few years. It will grow to $2.27 billion in 2030 at a compound annual growth rate (CAGR) of 16%. The growth in the forecast period can be attributed to rising demand for sustainable home energy solutions, expansion of virtual power plant programs, increasing adoption of smart meters and energy monitoring tools, growth in home electrification and ev charging needs, rising regulatory support for residential storage incentives. Major trends in the forecast period include increasing adoption of home backup power solutions, growing demand for high capacity residential battery systems, expansion of solar plus storage installations in households, rising preference for smart energy management systems, shift toward long duration and high efficiency storage technologies.

The rising demand for renewable energy is expected to drive the growth of the residential energy storage market going forward. Renewable energy refers to power generated from naturally replenishing sources such as sunlight, wind, rain, tides, and geothermal heat, which serve as sustainable and environmentally friendly alternatives to finite fossil fuels. This growing demand is driven by the need to mitigate climate change through the adoption of clean and sustainable power sources. Renewable energy supports residential energy storage by supplying an intermittent yet sustainable power source, enabling homeowners to store excess energy generated during peak periods for later use, improving grid resilience, and reducing dependence on conventional energy systems. For example, in April 2024, the International Renewable Energy Agency (IRENA), a UAE-based intergovernmental organization, reported that global renewable power capacity increased by 585 GW in a single year, marking a record 15.1% annual growth and surpassing the 14.3% growth recorded in 2023. Therefore, the rising demand for renewable energy is fueling the growth of the residential energy storage market.

Major companies operating in the residential energy storage market are developing advanced home storage battery system technologies, such as electrified vehicle battery technology, to improve energy storage capacity, efficiency, and sustainability for residential users. These systems utilize EV battery technology to provide homeowners with dependable backup power, optimize energy consumption from renewable sources like solar panels, and lower electricity expenses through peak shaving and load shifting strategies. For example, in June 2024, Pylontech, a China-based provider of battery energy storage systems, launched Force H3X, a next-generation residential storage solution. This platform offers modular and scalable capacity ranging from 10 kWh to 210 kWh, supports both single-phase and three-phase power output configurations, and incorporates a battery management system with intelligent energy management to optimize solar energy usage and improve home energy reliability. This solution represents a major advancement in the residential energy storage market, promoting energy efficiency, cost savings, and sustainable energy use.

In October 2023, Hitachi Energy acquired eks Energy for an undisclosed amount, aiming to deliver advanced and reliable solutions by leveraging eks Energy's successful product range deployment in North America and Europe, along with Powin's global expansion. This strategic move positions Hitachi Energy to address the growing demands of the global battery energy storage systems (BESS) market. eks Energy designs and builds plug-and-play integrated storage systems for residential use and is based in the UK.

Major companies operating in the residential energy storage market are Huawei Technologies Co. Ltd., Tesla Inc., Siemens AG, Hitachi Energy Ltd., Panasonic Corporation, BYD Company Limited, ABB Ltd, Eaton Corporation plc, LG Energy Solution Ltd., Samsung SDI Co. Ltd., Delta Electronics Inc., Enphase Energy Inc., SMA Solar Technology AG, Saft Groupe SA, VARTA AG, Jiangsu GoodWe Power Supply Technology Co. Ltd., Sonnen GmbH, ShanghAI PYTES Energy Co. Ltd, Dyness Power Energy Limited, Deutsche Energieversorgung GmbH, Powervault Ltd., TESVOLT GmbH, Turbo Energy Ltd., Alpha ESS Co. Ltd., Sunverge Energy LLC, Eguana Technologies Inc.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on battery cells, inverters, and energy storage hardware have increased system costs for residential energy storage installations, particularly impacting regions such as North America and Europe that rely heavily on imported components. Higher costs slow adoption among price sensitive homeowners and extend installation lead times for solar plus storage projects. Nonetheless, tariffs are promoting domestic battery manufacturing, encouraging localized production of storage components, and strengthening regional supply chain resilience over the long term.

The residential energy storage research report is one of a series of new reports that provides residential energy storage market statistics, including the residential energy storage industry's global market size, regional shares, competitors with an residential energy storage market share, detailed residential energy storage market segments, market trends and opportunities, and any further data you may need to thrive in the residential energy storage industry. This residential energy storage market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Residential energy storage systems enable homeowners to store electricity generated from renewable sources such as solar panels, wind turbines, or the grid during off-peak hours when electricity rates are lower. These systems typically consist of batteries that store electrical energy as chemical energy, which can later be converted into usable electricity through an inverter.

The primary technological types of residential energy storage include lead-acid and lithium-ion batteries. Lead-acid batteries are commonly used to store excess energy generated from renewable sources, providing a reliable power supply during outages or periods of low renewable energy production for residential uses. These systems are categorized by utility type, ranging from 3KW to < 6KW, 6KW to < 10KW, and 10KW to 29KW, based on connectivity models such as on-grid and off-grid. Ownership types encompass customer-owned, utility-owned, and third-party-owned systems, further classified into operation types such as solar and storage systems or standalone systems.Europe was the largest region in the residential energy storage market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the residential energy storage market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the residential energy storage market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The residential energy storage market consist of revenues earned by entities by providing services such as installation, ongoing maintenance, and energy management. The market value includes the value of related goods sold by the service provider or included within the service offering. The residential energy storage market also includes sales of rechargeable energy storage systems, home battery systems, and solar-plus-storage solutions. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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