The Future of Batteries is Not Only in Electric Vehicles

For all the fuss we have seen about EV’s, they are having their fair share of problems. Not to say there is no future in EV’s for the technology, but I can go on all day about the inadequate power grid, we can talk about batteries dying in cold weather and touch on several other reasons they don’t make sense quite yet. However, instead I’m going to talk about where I see the brightest future for battery technology and maybe one that could outpace EV’s. In my opinion, home emergency power storage and off grid power generation is going to play a huge role in the future electrical grid in North America.

The Rising Demand for Home Battery Storage

There has been a noticeable increase in demand for home battery storage systems in recent years. According to a report by Wood Mackenzie, the global market for residential energy storage is expected to grow rapidly, with North America being one of the key regions driving this growth (Wood Mackenzie, “Global Energy Storage Outlook 2020”). The demand is driven by various factors, including but not limited to, concerns about power outages caused by extreme weather events, grid instability, and the desire for energy independence.

As an example, Tesla has reported significant increases in demand for its Powerwall home battery storage systems over the last several years, particularly in regions prone to power outages and extreme weather events. Elon has done it again! Built cars that strain the power grid and then sell power storage solutions to fix the problem, but that’s a whole other conversation.  

Resilience Against Power Outages

The frequency and severity of weather-related power outages in North America have been increasing in recent years due to climate change. According to the U.S. Energy Information Administration (EIA), major power outages in the U.S. have doubled since 2003, with weather-related outages being the leading cause (EIA, “Power Outages: Trends, Costs, and Reliability”). This is where home battery storage systems provide homeowners with a reliable backup power source during emergencies, reducing dependence on the grid and ensuring continuity of essential services such as lighting, heating, and communication.

Technological Advancements

Advances in battery technology, particularly in lithium-ion batteries, have led to improvements in energy density, efficiency, and cost-effectiveness. These advancements have made home battery storage systems more affordable and accessible to consumers (Energy Storage Association, “State of Charge: Energy Storage in the U.S. 2021”). Companies like Tesla, LG Chem, Sonnen, and Generac are actively developing home energy storage solutions that integrate with residential solar installations and offer enhanced reliability and performance. With the right set up energy independence is possible.

Government Support and Incentives:

Governments in the US at the federal, state, and local levels are offering various incentives and subsidies to encourage the adoption of home battery storage systems. For example, the U.S. federal Investment Tax Credit (ITC) provides a tax credit of up to 26% for residential energy storage installations.

In Canada, while there may not be direct equivalents to the federal Investment Tax Credit there are still various initiatives and incentives at both the federal and provincial levels aimed at promoting the adoption of home battery storage systems and renewable energy technologies. For Example:

• In Ontario the Independent Electricity System Operator (IESO) offers incentives for energy storage projects through its Grid Innovation Fund.
• In British Columbia, the CleanBC Go Electric EV Charger Rebate Program provides rebates for the purchase and installation of home EV chargers, which could indirectly support the adoption of home battery storage systems for EV charging.
• Alberta’s Residential and Commercial Solar Program provides rebates for solar PV installations, which can be combined with battery storage systems to maximize energy self-consumption and resilience.

Furthermore, many provinces have net metering or feed-in tariff programs that allow homeowners with renewable energy systems, such as solar PV, to sell excess electricity back to the grid or receive credits on their utility bills. Integrating battery storage systems with renewable energy installations can optimize self-consumption and energy independence under these programs.

Integration with Renewable Energy

Home battery storage systems can complement residential solar panel installations by storing excess energy generated during the day for use during peak demand periods or at night when solar generation is not available. This integration can help homeowners maximize their energy independence and reduce their reliance on the grid.

In Conclusion, while the EV industry is growing rapidly and has its place in North America, the market for home battery storage systems also presents significant growth potential. For companies involved in the battery industry, diversifying into the home energy storage market makes sense and provides additional revenue streams, while reducing the dependence on the volatile automotive sector.

The bottom line is this. In a time when the cost of living is at all time highs, people are looking for ways to save money and the market for home energy storage is going to continue to grow. With Carbon tax being applied to home heating more people will be looking to transition away from corporate energy suppliers who on top of the tax, charge more to deliver the fuel than you consume. This is not a trend that will fade away, this is how society will have to go. Current power suppliers can’t keep up with the demand for energy and with EV’s being pushed, I think home energy storage will become a necessity.

Authored by: Mike Coyle