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The twentieth version of EnergySage’s Photo voltaic & Storage Market Report affords a complete take a look at the residential photo voltaic and storage sector within the US throughout a turbulent 2024. Drawing from hundreds of quotes submitted by vetted installers by way of EnergySage’s platform, the report tracks real-time market traits throughout pricing, tools preferences, financing, and client conduct. For business 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 based on Wooden Mackenzie. This contraction, following years of strong progress, was pushed by excessive rates of interest, subdued electrical energy value inflation, and vital coverage adjustments — most notably California’s Net Billing Tariff (NBT)which decreased export compensation for solar-only programs. Regardless of this slowdown, EnergySage knowledge suggests client curiosity in clear power stays robust, particularly when storage is concerned.
Report Low Costs For Photo voltaic & Storage
For the third consecutive six-month interval, the median quoted photo voltaic value 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 value touchdown slightly below $1,000/kWh for the primary time. This pricing shift is basically attributable to 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, solar and battery prices had never been lower on the EnergySage Marketplace, and for homeowners, that means more affordable and accessible clean energy solutions. This creates a compelling record-low benchmark to measure against as we begin to see the effects of shifting policies and tariffs take hold this year.” — 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 fee reached 45% in H2 2024, additionally a document excessive, reflecting the shifting economics and worth propositions below insurance policies like California’s NBT. Tesla’s dominance drove general value reductions, but additionally raised issues about future provide shortages and reputational dangers stemming from model controversies, each of which can have an effect on 2025 traits.
“Tesla’s emerging dominance in both storage and inverter quotes reflects the market’s appetite for integrated, all-in-one solutions. But as concerns around availability and brand sentiment surface, we’re watching closely to see whether this momentum holds or if consumer backlash will begin to shift installer and homeowner preferences.” — Charlie Hadlow, President and COO of EnergySage
Shifts In Gear: Extra Energy, Fewer Decisions
The business 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 beneath 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 attributable to 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. Nevertheless, inverter range grew, with fewer installers solely 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 have been stark:
- Arizona retained the bottom median photo voltaic value at $1.99/W, whereas Tennessee topped the listing at $3.35/W — a variety of $15,640 on an 11.5 kW system.
- The highest photo voltaic states — California, Florida, and Texas — had median costs not less than $0.25/W beneath the nationwide median, largely attributable to 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 biggest programs (~14 kW), reflecting rising home electrification and climate-driven power wants.
Financing: A Shift Towards Low-Payment 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, consumers 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 fee a yr earlier. Whereas California’s coverage adjustments have been a serious catalyst (with its attachment fee reaching 79%), different states adopted swimsuit attributable to 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 have been closely influenced by regional components.
Warmth Pumps: A Complementary Pattern
EnergySage additionally reported on its Warmth Pump Market, highlighting rising electrification synergies. Heat pump prices assorted considerably by state and system dimension, with ductless programs being cheaper 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 might affect the 2025 panorama:
- Tariff uncertainties affecting module provide chains and inverter availability
- Doable backlash in opposition to 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 price declines, client curiosity, and expertise enhancements, recommend a resilient path ahead.
“The data in this report tells a broader story about the industry’s evolution. From the rise in storage adoption to the shift toward higher-efficiency equipment and lower costs, we’re seeing homeowners take greater control over their energy choices.” — Charlie Hadlow
The full Solar & Storage Marketplace Report 2025 is available from EnergySage.
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