The North America home energy storage market was valued at USD 3.65 billion in 2025. It is estimated at USD 3.85 billion in 2026 and is projected to reach USD 12.95 billion by 2036, expanding at a CAGR of 12.9% over the 2026-2036 forecast period. The report examines installation and attachment trends, tax credits and incentives, rate reforms and virtual power plant programs, technologies, safety codes, economics, supply chains, and competition.
The study tracks residential battery systems across Canada and the U.S., counting the battery, inverter, control software, and installation work. It spans lithium iron phosphate (LFP), nickel manganese cobalt (NMC), and emerging chemistries, systems from below 10 kWh to above 20 kWh, AC-coupled and DC-coupled/hybrid designs, batteries added with new rooftop solar, retrofitted to existing solar, or installed on their own, and systems bought by homeowners or owned by third parties under leases, power purchase agreements, and subscriptions. The market is measured at installed system value. Portable power stations that are not permanently wired into the home, as well as commercial and utility-scale storage, are excluded.
Home batteries are moving into the mainstream: additions in America climbed 51% in 2025 to about 3.1 GWh, taking the installed residential base to roughly 9 GWh, according to the Solar Energy Industries Association (SEIA). Sunrun reported a record storage attachment rate of 71% on new installations in the fourth quarter of 2025, compared with 62% a year earlier, and said its network of more than 237,000 solar and storage systems holds about 4.0 GWh of networked storage. Home batteries are also serving the grid: Sunrun reported that its fleet dispatched nearly 18 GWh in 2025, reaching a combined peak of 425 MW.
A federal law signed in July 2025 stopped the homeowner tax credit at the end of 2025, and the credit still available to third-party owners now excludes some components tied to foreign entities of concern. A typical 10 to 15 kWh system, once installation, electrical work, and permits are included, is a large outlay for many households, and whole-home backup with several batteries costs considerably more. Permitting and interconnection rules differ across thousands of jurisdictions and utilities, panel upgrades are often needed, and licensed installers are in short supply. Most cells come from China, and U.S. duties on Chinese batteries for stationary use rose again in January 2026. Further challenges include short-term and inconsistent virtual power plant program rules, frequently updated fire codes such as UL 9540, UL 9540A, and NFPA 855, the bankruptcies of SunPower in August 2024 and Sunnova in June 2025, and concerns over aggressive sales practices and hidden financing fees, which the U.S. Consumer Financial Protection Bureau highlighted in a 2024 report.
The largest opportunity lies in adding batteries to the millions of homes that already have solar but no storage, which Sunrun describes as a massive untapped market. Home electrification and vehicle-to-home charging also widen the role of storage, as heat pumps and EV chargers raise household demand and bidirectional products such as Ford's Intelligent Backup Power, GM Energy's vehicle-to-home offering, and Tesla's Cybertruck Powershare turn vehicles into backup sources. In Canada, new provincial rebates, such as those added under Ontario's Home Renovation Savings Program in 2025, open a fresh market. Key trends include storage-first selling by large installers, the move toward leases, power purchase agreements, and subscriptions, the scaling of residential virtual power plants, and growing U.S. production of batteries and inverters.
By battery chemistry, the report covers LFP, NMC, and others. LFP is expected to hold the largest share in 2026, since its long cycle life and thermal stability suit daily cycling inside homes, it eases fire safety concerns, and it is used in most leading home battery products. The others category, which includes sodium-ion and other emerging chemistries, is expected to grow at the highest CAGR, as suppliers look for lower costs and less dependence on imported lithium-ion cells now facing higher tariffs and foreign entity of concern rules.
By storage capacity, the market is studied across below 10 kWh, 10-20 kWh, and above 20 kWh systems. Systems in the 10-20 kWh range match the typical single-battery installation for partial-home backup and solar self-consumption, while larger systems above 20 kWh serve whole-home backup and households with heat pumps and EV charging. Smaller units below 10 kWh suit budget-conscious buyers, retrofits, and modular systems that can be expanded over time.
By system architecture, the report covers AC-coupled and DC-coupled/hybrid systems. AC-coupled batteries connect alongside an existing solar inverter, which makes them a natural fit for retrofits to homes that already have solar, as offered by Enphase and others. DC-coupled and hybrid systems use a single inverter for solar and storage, which can improve efficiency and lower equipment costs in new solar-plus-storage installations.
By installation type, the report divides the market into solar-paired new installation, retrofit to existing solar, and standalone. Batteries sold with new solar systems are expected to lead in 2026, as batteries have become a standard part of new rooftop solar sales, net billing makes solar alone less valuable, and large installers lead with storage. Retrofits to existing solar are expected to grow at the highest CAGR, driven by rate changes and outages that push owners of solar-only homes, many installed under older net metering rules, to add batteries.
By ownership model, the report covers customer-owned systems (cash and loan) and third-party-owned systems (lease, power purchase agreement, and subscription). Third-party ownership is expected to hold the larger share in 2026, because the homeowner tax credit ended after 2025 while the investment tax credit remains open to third-party owners, who can also aggregate batteries into virtual power plants and finance large portfolios, as in Sunrun's December 2025 joint venture with HASI covering more than 300 MW across more than 40,000 home power plants. Customer-owned systems are expected to post the higher CAGR from a reduced 2026 base, helped by falling battery costs, state and provincial incentives, and a recovery in cash and loan purchases.
By application, the report divides the market into backup power & resilience, self-consumption & time-of-use optimization, and virtual power plants & grid services. Backup power & resilience is expected to account for the largest share in 2026, reflecting the rising frequency and severity of outages and the importance of resilience in Puerto Rico, Texas, California, and storm-prone regions. Virtual power plants & grid services are expected to grow at the highest CAGR, as utilities expand paid programs and fleets such as Sunrun's, Tesla's, and Enphase's, along with new entrants such as Base Power in Texas, are built to deliver grid support. Self-consumption and time-of-use optimization gain ground wherever net billing and evening price peaks spread.
The U.S., with its large residential solar base, outage exposure, rate reforms, and a mature installer and financing ecosystem, is expected to remain the dominant country market in 2026. California is the largest state market, supported by net billing and the Self-Generation Incentive Program; Sunrun reported attachment rates of about 89% there at the end of 2024. Texas is expected to be the fastest-growing state, driven by memories of the 2021 winter storm, a competitive power market, and ERCOT pilots for aggregated home batteries, and SEIA expects the state to overtake California in 2026 as the country's biggest storage market across all segments. Hawaii and Puerto Rico, with attachment rates near 100% according to Sunrun, show how island grids make storage essential, while Florida, the Southeast, and the Northeast offer growth as hurricanes, winter storms, and programs such as Massachusetts' ConnectedSolutions raise interest.
Canada is expected to grow at the highest CAGR during the forecast period, from a small base. Ontario added battery rebates under its Home Renovation Savings Program in 2025, British Columbia's utility provides solar and battery rebates, and ice storms in central Canada, including a March 2025 storm that left hundreds of thousands of Ontario customers without power, have raised demand for backup power. Alberta's competitive electricity market, wildfire risk in western Canada, and storm exposure in Atlantic Canada, where Nova Scotia's SolarHomes program has built a base of solar homes, add further potential.
The market brings together battery and integrated system makers, inverter and energy management companies, residential installers and financiers, and new entrants built around grid services. Companies compete on capacity, power output and backup capability, solar and home energy management integration, virtual power plant software, safety certification, domestic content, price, financing, and service. Leading players are putting storage at the center of their offers, growing grid-connected fleets, localizing manufacturing to meet sourcing rules, and forming financing partnerships. Enphase reported shipping 170.1 MWh of batteries in the first quarter of 2025, including 44.1 MWh from U.S. facilities, and Sunrun reported paying down USD 148 million of recourse debt in 2025.
Key companies profiled in the report include Tesla, Inc. (U.S.), Enphase Energy, Inc. (U.S.), Generac Holdings Inc. (U.S.), SolarEdge Technologies, Inc. (U.S./Israel), FranklinWH Energy Storage Inc. (U.S.), LG Energy Solution, Ltd. (South Korea), Panasonic Holdings Corporation (Japan), sonnen (Shell) (Germany/U.S.), Lunar Energy (U.S.), Canadian Solar Inc. (EP Cube) (Canada), EcoFlow (China/U.S.), Anker SOLIX (Anker Innovations) (China/U.S.), Fortress Power (U.S.), Sunrun Inc. (U.S.), and Base Power Company (U.S.).
The study tracks residential battery systems across Canada and the U.S., counting the battery, inverter, control software, and installation work. It spans lithium iron phosphate (LFP), nickel manganese cobalt (NMC), and emerging chemistries, systems from below 10 kWh to above 20 kWh, AC-coupled and DC-coupled/hybrid designs, batteries added with new rooftop solar, retrofitted to existing solar, or installed on their own, and systems bought by homeowners or owned by third parties under leases, power purchase agreements, and subscriptions. The market is measured at installed system value. Portable power stations that are not permanently wired into the home, as well as commercial and utility-scale storage, are excluded.
Home batteries are moving into the mainstream: additions in America climbed 51% in 2025 to about 3.1 GWh, taking the installed residential base to roughly 9 GWh, according to the Solar Energy Industries Association (SEIA). Sunrun reported a record storage attachment rate of 71% on new installations in the fourth quarter of 2025, compared with 62% a year earlier, and said its network of more than 237,000 solar and storage systems holds about 4.0 GWh of networked storage. Home batteries are also serving the grid: Sunrun reported that its fleet dispatched nearly 18 GWh in 2025, reaching a combined peak of 425 MW.
Market Dynamics
Backup power is the leading reason homeowners buy batteries, as hurricanes, winter storms, heat waves, and wildfires have caused long outages, from the February 2021 Texas winter storm to public safety power shutoffs in California, and Sunrun reported that batteries kept its customers powered for 3.8 million hours during over 650,000 outages in 2025. Rate design adds to the case: California's move to net billing in April 2023 cut the value of exported solar power, and time-of-use rates with high evening prices reward homeowners who store midday solar output. Virtual power plant programs now pay homeowners and aggregators for capacity and energy, and FERC Order 2222 opened wholesale markets to distributed resources. Lower battery costs, as lithium prices fell sharply from their late-2022 peak, and rising utility bills further shorten payback periods.A federal law signed in July 2025 stopped the homeowner tax credit at the end of 2025, and the credit still available to third-party owners now excludes some components tied to foreign entities of concern. A typical 10 to 15 kWh system, once installation, electrical work, and permits are included, is a large outlay for many households, and whole-home backup with several batteries costs considerably more. Permitting and interconnection rules differ across thousands of jurisdictions and utilities, panel upgrades are often needed, and licensed installers are in short supply. Most cells come from China, and U.S. duties on Chinese batteries for stationary use rose again in January 2026. Further challenges include short-term and inconsistent virtual power plant program rules, frequently updated fire codes such as UL 9540, UL 9540A, and NFPA 855, the bankruptcies of SunPower in August 2024 and Sunnova in June 2025, and concerns over aggressive sales practices and hidden financing fees, which the U.S. Consumer Financial Protection Bureau highlighted in a 2024 report.
The largest opportunity lies in adding batteries to the millions of homes that already have solar but no storage, which Sunrun describes as a massive untapped market. Home electrification and vehicle-to-home charging also widen the role of storage, as heat pumps and EV chargers raise household demand and bidirectional products such as Ford's Intelligent Backup Power, GM Energy's vehicle-to-home offering, and Tesla's Cybertruck Powershare turn vehicles into backup sources. In Canada, new provincial rebates, such as those added under Ontario's Home Renovation Savings Program in 2025, open a fresh market. Key trends include storage-first selling by large installers, the move toward leases, power purchase agreements, and subscriptions, the scaling of residential virtual power plants, and growing U.S. production of batteries and inverters.
Segment Analysis
The report analyzes the market by battery chemistry, storage capacity, system architecture, installation type, ownership model, application, and country, showing how buyer needs, policy, and business models shape demand.By battery chemistry, the report covers LFP, NMC, and others. LFP is expected to hold the largest share in 2026, since its long cycle life and thermal stability suit daily cycling inside homes, it eases fire safety concerns, and it is used in most leading home battery products. The others category, which includes sodium-ion and other emerging chemistries, is expected to grow at the highest CAGR, as suppliers look for lower costs and less dependence on imported lithium-ion cells now facing higher tariffs and foreign entity of concern rules.
By storage capacity, the market is studied across below 10 kWh, 10-20 kWh, and above 20 kWh systems. Systems in the 10-20 kWh range match the typical single-battery installation for partial-home backup and solar self-consumption, while larger systems above 20 kWh serve whole-home backup and households with heat pumps and EV charging. Smaller units below 10 kWh suit budget-conscious buyers, retrofits, and modular systems that can be expanded over time.
By system architecture, the report covers AC-coupled and DC-coupled/hybrid systems. AC-coupled batteries connect alongside an existing solar inverter, which makes them a natural fit for retrofits to homes that already have solar, as offered by Enphase and others. DC-coupled and hybrid systems use a single inverter for solar and storage, which can improve efficiency and lower equipment costs in new solar-plus-storage installations.
By installation type, the report divides the market into solar-paired new installation, retrofit to existing solar, and standalone. Batteries sold with new solar systems are expected to lead in 2026, as batteries have become a standard part of new rooftop solar sales, net billing makes solar alone less valuable, and large installers lead with storage. Retrofits to existing solar are expected to grow at the highest CAGR, driven by rate changes and outages that push owners of solar-only homes, many installed under older net metering rules, to add batteries.
By ownership model, the report covers customer-owned systems (cash and loan) and third-party-owned systems (lease, power purchase agreement, and subscription). Third-party ownership is expected to hold the larger share in 2026, because the homeowner tax credit ended after 2025 while the investment tax credit remains open to third-party owners, who can also aggregate batteries into virtual power plants and finance large portfolios, as in Sunrun's December 2025 joint venture with HASI covering more than 300 MW across more than 40,000 home power plants. Customer-owned systems are expected to post the higher CAGR from a reduced 2026 base, helped by falling battery costs, state and provincial incentives, and a recovery in cash and loan purchases.
By application, the report divides the market into backup power & resilience, self-consumption & time-of-use optimization, and virtual power plants & grid services. Backup power & resilience is expected to account for the largest share in 2026, reflecting the rising frequency and severity of outages and the importance of resilience in Puerto Rico, Texas, California, and storm-prone regions. Virtual power plants & grid services are expected to grow at the highest CAGR, as utilities expand paid programs and fleets such as Sunrun's, Tesla's, and Enphase's, along with new entrants such as Base Power in Texas, are built to deliver grid support. Self-consumption and time-of-use optimization gain ground wherever net billing and evening price peaks spread.
Regional Analysis
Geographic coverage includes two countries: the U.S., split into California, Texas, Hawaii, Puerto Rico, Florida & Southeast, Northeast, and rest of U.S., and Canada, split into Ontario, British Columbia, Quebec, Alberta, Atlantic Canada, and rest of Canada. The analysis weighs outage risk, rate design, incentives, grid programs, and installer capacity.The U.S., with its large residential solar base, outage exposure, rate reforms, and a mature installer and financing ecosystem, is expected to remain the dominant country market in 2026. California is the largest state market, supported by net billing and the Self-Generation Incentive Program; Sunrun reported attachment rates of about 89% there at the end of 2024. Texas is expected to be the fastest-growing state, driven by memories of the 2021 winter storm, a competitive power market, and ERCOT pilots for aggregated home batteries, and SEIA expects the state to overtake California in 2026 as the country's biggest storage market across all segments. Hawaii and Puerto Rico, with attachment rates near 100% according to Sunrun, show how island grids make storage essential, while Florida, the Southeast, and the Northeast offer growth as hurricanes, winter storms, and programs such as Massachusetts' ConnectedSolutions raise interest.
Canada is expected to grow at the highest CAGR during the forecast period, from a small base. Ontario added battery rebates under its Home Renovation Savings Program in 2025, British Columbia's utility provides solar and battery rebates, and ice storms in central Canada, including a March 2025 storm that left hundreds of thousands of Ontario customers without power, have raised demand for backup power. Alberta's competitive electricity market, wildfire risk in western Canada, and storm exposure in Atlantic Canada, where Nova Scotia's SolarHomes program has built a base of solar homes, add further potential.
Competitive Landscape
The report reviews key growth strategies, competitive benchmarking, and the competitive dashboard, which places companies among industry leaders, market differentiators, vanguards, and emerging companies, along with a market share/rank analysis by key player for 2025. Profiles, with financials, portfolios, developments, and SWOT analyses, cover battery and system makers as well as installers, financiers, and grid service providers.The market brings together battery and integrated system makers, inverter and energy management companies, residential installers and financiers, and new entrants built around grid services. Companies compete on capacity, power output and backup capability, solar and home energy management integration, virtual power plant software, safety certification, domestic content, price, financing, and service. Leading players are putting storage at the center of their offers, growing grid-connected fleets, localizing manufacturing to meet sourcing rules, and forming financing partnerships. Enphase reported shipping 170.1 MWh of batteries in the first quarter of 2025, including 44.1 MWh from U.S. facilities, and Sunrun reported paying down USD 148 million of recourse debt in 2025.
Key companies profiled in the report include Tesla, Inc. (U.S.), Enphase Energy, Inc. (U.S.), Generac Holdings Inc. (U.S.), SolarEdge Technologies, Inc. (U.S./Israel), FranklinWH Energy Storage Inc. (U.S.), LG Energy Solution, Ltd. (South Korea), Panasonic Holdings Corporation (Japan), sonnen (Shell) (Germany/U.S.), Lunar Energy (U.S.), Canadian Solar Inc. (EP Cube) (Canada), EcoFlow (China/U.S.), Anker SOLIX (Anker Innovations) (China/U.S.), Fortress Power (U.S.), Sunrun Inc. (U.S.), and Base Power Company (U.S.).
How This Report Helps
- Provides reliable market size estimates and long-term forecasts for the North America home energy storage market through 2036.
- Explains how outages, net billing, time-of-use rates, and virtual power plant programs are driving battery adoption.
- Assesses the impact of the end of the residential tax credit, foreign entity of concern rules, tariffs, and permitting constraints.
- Identifies high-growth opportunities across battery chemistry, storage capacity, system architecture, installation type, ownership model, application, and state or province.
- Tracks retrofit demand, vehicle-to-home integration, domestic battery manufacturing, and new chemistries such as sodium-ion.
- Benchmarks battery makers, installers, and grid service providers on products, financing, and fleet strategies.
- Supports product planning, channel and financing strategy, partnership, and investment decisions for manufacturers, installers, utilities, and investors.
Key Questions Answered
- How large is the North America home energy storage market today, and how will it grow through 2036?
- How will the end of the residential clean energy credit and new sourcing rules change ownership models and demand?
- What are the main drivers, restraints, opportunities, challenges, and trends shaping the market?
- How fast are storage attachment rates rising, and how large is the retrofit opportunity in existing solar homes?
- Which battery chemistry, storage capacity, architecture, installation type, ownership model, and application segments will grow the fastest?
- How are virtual power plants turning home batteries into grid resources, and what program changes are needed?
- Which states and provinces offer the most attractive opportunities?
- Who are the leading battery makers, installers, and grid service providers, and how do they compare?
- What financing partnerships, product launches, and manufacturing investments are shaping competition?
Table of Contents
1. Introduction
2. Research Methodology
4. Market Overview
5. North America Home Energy Storage Market, by Battery Chemistry
6. North America Home Energy Storage Market, by Storage Capacity
7. North America Home Energy Storage Market, by System Architecture
8. North America Home Energy Storage Market, by Installation Type
9. North America Home Energy Storage Market, by Ownership Model
10. North America Home Energy Storage Market, by Application
11. North America Home Energy Storage Market, by Country
12. Competitive Landscape
13. Company Profiles
14. Appendix
LIST OF TABLES
LIST OF FIGURES
Companies Mentioned
- Tesla, Inc.
- Enphase Energy, Inc.
- Generac Holdings Inc.
- SolarEdge Technologies, Inc.
- FranklinWH Energy Storage Inc.
- LG Energy Solution, Ltd.
- Panasonic Holdings Corporation
- sonnen
- Lunar Energy
- Canadian Solar Inc.
- EcoFlow
- Anker SOLIX
- Fortress Power
- Sunrun Inc.
- Base Power Company
