Erin Vaughan, Modernize
By Erin Vaughan, Modernize
Experts have long argued that the real issue with solar panels isn’t generating energy—improvements in solar cell design and materials have allowed developers to design cells with efficiencies of nearly 40%. The real hurdle that keeps solar from competing with conventional fuel sources is our inability to do much with the electricity unless it’s being used directly.
That’s exactly why Tesla’s Powerwall announcement made industry gurus excited. Not only was home battery power finally here, it was paired with the inimitable Tesla brand! Why wouldn’t homeowners bite?
Unfortunately, the release of the first Powerwall system was a little less revolutionary than expected. In March 2016, Tesla discontinue the 10-kWh Powerwall due to lack of interest—and it looked as though home battery power would have to wait for a little longer. Then at the end of last year came another Earth-rattling announcement: Musk would release a revamped version of the original Powerwall product, with 14 kWh of rated capacity and a new, more attractive price tag of $5,500.
This time, it looks like battery power may finally be ready to break into the market. The solar industry witnessed a record-shattering 1.3 million total installations—the numbers nearly doubled between 2015 and 2016—so it seems like sustainable energy is finally sticky enough to last. Of course, Tesla—which manufactures an EV that costs more than most people’s annual salaries—doesn’t exactly have a reputation for accessibility. Tesla may be able to make solar cool, but it won’t sway budget-strapped households.
That’s where the market really shows opportunies for growth. Amid circulating rumors of a new Powerwall, Sunrun announced a partnership with Korean-based tech monolith LG. The reason for the new relationship is the new LG Chem RESU batteries—which will now come standard in its BrightBox solar+storage systems. This means households that choose to go solar now have a streamlined one-stop solution for solar panels, inverters and solar storage. Sunrun says the product is available for lease as well as purchase, opening up the market for homes that don’t have money to burn. With Sunrun’s reported 49% growth in revenue this year, there’s little question whether that approach is winning over homeowners.
While Tesla’s SolarCity and Sunrun lead the solar+storage market, manufacturers would be wise not to underestimate dark horses. Namely, a San Diego based startup launched recently on Kickstarter says it has a home battery that’s just like the Powerwall, with one distinct difference: Orison’s system will plug directly into a wall.
The potential for plug-and-play solar+storage is enormous. Orison’s unit looks just like a funky, Jetson-era lamp and skirts a costly installation fee—as much as $3,000 or more. It also weighs less than 40 pounds, which makes Tesla’s 200-pound unit seem monstrous. And it only costs about $1,600. The only downside is that Orison’s battery tops out at about 2.2 kWh, meaning you’d have to buy four or five to get the kind of storage that the Powerwall offers.
That’s just one of the other options out there right now. There are at least 10 other companies offering their own take on the home battery, so for the meantime, the competition looks to be fierce. It’s likely that the improvements and ideas coming out of these startups will just force the heavy hitters to produce a more useful and convenient product—but in the tech world, you never know. What seems like a scrappy startup today could be tomorrow’s storage titon. One thing’s for sure: When it comes to residential solar+storage, the industry is ripe for disruption.
Erin Vaughan is a blogger, gardener and aspiring homeowner. She currently resides in Austin, TX where she writes full time for Modernize, with the goal of empowering homeowners with the expert guidance and educational tools they need to take on big home projects with confidence.