US Solar Prices Plummet, Battery Adoption Skyrockets: EnergySage Report

EnergySage has released its 19th Intel Solar & Storage Marketplace Report, offering detailed insights into the US residential solar and storage market. The semiannual report analyses millions of transaction data points from January to June 2024, based on consumer activity across 48 states and Washington, D.C. The data highlights key trends such as falling solar and storage prices, shifting consumer motivations, and an increase in battery storage adoption.

Solar Prices Near All-Time Lows 

The first half of 2024 saw solar prices continue to decline, reaching $2.69 per watt—the lowest prices recorded by EnergySage since 2014. This marks the second consecutive period of price drops, bringing solar pricing close to its all-time low. The declining costs present an important opportunity for homeowners looking to invest in clean energy.

Spencer Fields, EnergySage’s Director of Insights, noted, “We’re at a pivotal moment for solar pricing, where ongoing cost reductions are enabling more homeowners to make the switch to clean energy.”

Record Low Storage Prices 

In addition to solar price declines, quoted storage prices set a new record low of $1,133 per kilowatt-hour. The affordability of energy storage is encouraging more consumers to integrate batteries into their solar installations, offering increased energy resilience and independence.

Emily Walker, Senior Research Analyst at EnergySage, explained, “The high attachment rates across the country signal that more homeowners are prioritising energy independence alongside solar as they become more economical.”

Battery Adoption Skyrockets 

A key highlight of the report is the significant rise in homeowners purchasing battery storage with their solar systems. Nationwide, the battery attachment rate jumped to 34% in the first half of 2024, with California leading the trend at a 70% attachment rate due to its Net Billing Tariff introduced in 2023. Outside California, attachment rates also surged to 22%, reflecting a growing national interest in energy resilience.

Interest Rate Trends in Solar Loans 

Despite the encouraging price reductions, the report also noted that median interest rates on solar loans increased from 5.5% in the second half of 2023 to 7.49% in the first half of 2024. This increase was partly driven by the popularity of 7.99% 20-year loans with no fees. However, loan fees have dropped from 47% to 40%, offering some relief to consumers looking to finance their solar installations.

Industry Challenges and Market Shifts 

The EnergySage report arrives at a time when the solar industry is experiencing both growth and challenges. High-profile bankruptcies, such as those of SunPower and Titan Solar Power, coupled with the use of aggressive sales tactics by some players, have placed greater emphasis on transparency.

Charlie Hadlow, President and COO of EnergySage, stressed the importance of trust and transparency, stating, “With high-profile solar bankruptcies… EnergySage’s approach has never been more crucial to the sustainable growth of these industries.”

As the market evolves, the report underscores the growing role of transparent pricing, consumer-friendly financing, and high-quality equipment in the wider adoption of clean energy solutions.