U.S. Residential Solar Prices Drop To Near Historic Lows, Energy Storage Adoption Surges

EnergySage, a market platform, stated in its market report that the price of residential solar systems in the United States is hovering around historical lows.

In the first half of 2024, the average price of the EnergySage platform was $2.69 per watt, a decrease of 4% compared to the second half of 2023. This is only 1% higher than the historical low of $2.67 per watt in the first half of 2021, when residential solar energy in the United States experienced one of the largest growth cycles in history.

This marks the sixth consecutive month of cost decline, after two and a half years of rising costs due to supply chain restrictions related to the pandemic.

The report states that "stable supply and cooling demand from policy changes such as California's net billing policy and high interest rates may be potential drivers of recent price reductions

The report points out that an increasing number of customers nationwide are choosing battery energy storage systems in solar projects. By the first half of 2024, the installation rate of battery energy storage systems in China has tripled compared to the same period last year, reaching 34%.

EnergySage stated that the price of energy storage systems has reached a historical low of $1133 per kilowatt hour. In addition to changes in net metering policies and more weather related power outages, the decline in prices is likely to encourage more customers to adopt energy storage systems, a trend more evident than ever before.