Residential investment in generation and storage expected to top $625 billion by 2023

Innovations in renewable distributed power generation and attractive new financing possibilities spur homeowners to invest more than $625 billion, cumutaively, in distributed energy resources in the next nine years.

In a recent report, Navigant Research says distributed energy resources, or DER, are providing residential customers around the globe with new options to manage energy use and generate their own power. Innovative DER technologies are causing a broad disruption that is altering the traditional relationship between utilities and their residential customers, the report adds.

"The growing affordability of DER technologies is giving customers greater control of their energy consumption — turning some homes into miniature power plants that generate all the power they consume and even deliver power back to the grid," says Neil Strother, principal research analyst with Navigant Research. "Solar PV panels are the most visible technology reshaping the residential power landscape, but there are many others, as well."

Some of these technologies, such as residential combined heat and power, are in the early stages of market development, according to the report, while solar panels are more mature. Residential energy storage systems, vehicle-to-grid and vehicle-to-home systems that enable plug-in electric vehicles (EVs) to receive and provide power from and to the grid, and increasingly sophisticated home energy management tools are all likely to deliver more capability to homes and integrate onsite generation and storage in new and innovative ways.

The report, Residential Energy Innovations, examines the market for residential generation and storage technologies and how they are reshaping the future of the residential power industry.