More and more energy storage companies are entering the residential energy market and by 2020 this market is anticipated to be a multibillion-dollar business. There are several business models that industry players employ in order to increase their market share and increase their profits.
One model is the national installer model. Some companies like Tesla and Sunrun use their residential solar market to expand into energy storage. Initially batteries were sold or leased to customers just to provide backup power, but as costs fall energy storage will become more financially justified and new business models will evolve.
Some companies like SunPower use service-oriented dealer model, where the company sells its equipment and services, but is in a partnership with market dealers to perform the installations.
One popular model is the third-party energy storage model, when energy storage is an independent service, not tied to a solar system’s financing. The industry leader in Germany – Sonnen has installed worldwide thousands energy storage systems that can both work with a solar system and can also collect excess energy from a community energy program.
Worth noting – all these models right now rely on big companies in order to generate the most value from the energy storage systems.