The Department of Energy recently warned that two-thirds of the U.S. is at risk of losing power this summer. It’s an increasingly common refrain: Homeowners want to be less reliant on the aging power grid and don’t want to be at the mercy of electric utilities due to rising energy costs and dwindling faith in the power grid’s reliability.

And it makes sense. While the inflated price of eggs and butter made headlines earlier this year, electricity prices quietly increased at twice the rate of overall inflation in 2022, and homeowners have taken notice. In fact, according to Aurora Solar’s Industry Snapshot, 62% expect energy prices will continue to rise.

Homeowners aren’t just frustrated that electricity is pricey when they need it, they’re also worried it won’t be available at all when they feel the most vulnerable. Nearly half (48%) of homeowners are concerned about power outages stemming from weather events, followed closely by outages due to cyberattacks on the power grid.

These concerns around reliability and cost are creating a deep lack of confidence in the power grid. Yet, despite these growing concerns, homeowners are increasingly using electricity to displace other fuel sources.

The electrification of everything

From electric heat pumps to electric stoves and clothes dryers, homeowners are accelerating the electrification of their homes. Perhaps the most exciting example is electric vehicle (EV) adoption and the need for home charging. With major vehicle makers committing to ambitious electric vehicle targets and even going all-electric in the future, EVs are primed to make an even bigger splash in the years to come.

The by-product of this electrification movement is, of course, higher electric bills because of increased consumption. Homeowners also risk paying more for every unit of energy they use if they’re part of a tiered pricing utility structure, in which customers are charged different rates based on the total amount of energy they use. Many new electric vehicle owners don’t realize this until they are deep into purchasing their new vehicle, or even when they open that first electric bill after the car is in their driveway.

Sure, this electrification movement can feel counterintuitive given the power grid concerns. But it’s actually the first step toward energy independence.

Balancing conflicting movements

The fact is that electrification is moving forward quickly, even among homeowners who are concerned about electricity prices and power grid reliability. This has the potential to lead to even more discontent with electric utilities and growing anxiety over access to electricity in extreme situations. There is a third trend, though, that can help reconcile these two conflicting movements: the growth of solar.

The popularity of solar is likely higher than you think: Nearly 77% of homeowners either have solar panels on their homes or are interested in purchasing solar. The Aurora Solar Industry Snapshot report also showed a nearly 40% year-over-year increase in residential solar projects across the U.S. in 2022, aligning with the Solar Energy Industries Association’s (SEIA) Solar Market Insight Report, which found, “Residential solar had a record year [in 2022] with nearly 6 GWdc of installations, representing 40% growth over 2021.”

It makes sense that finding ways to tamp down—even eliminate—growing bills caused by the electrification of homes is accelerating interest in solar, and residential solar installers are seeing this firsthand. The link between EVs and solar is a great proof point: Almost 80% of solar professionals said EV adoption often drives new interest in solar.

It helps that the price of solar continues to drop. SEIA estimates that the total cost of a residential solar system decreased by over 65% in the past decade. New legislation is also contributing to solar’s affordability and popularity. The Inflation Reduction Act (IRA), signed into law on Aug. 16, 2022, has been hailed as “the most substantial federal investment in history to fight climate change.” The biggest benefit for homeowners considering solar or battery storage, and installers trying to sell to them? The solar Investment Tax Credit (ITC) was restored to its original 30% credit, extended until 2032, and clarified to include battery storage.

In fact, the IRA already made a meaningful impact on both solar installers and homeowners. More than 45% of residential solar installers say they have seen increased interest in solar thanks to the IRA, and another 40% expect to see increased interest in the future.

The pursuit of energy independence

Solar adoption alone can help address increased electricity demand caused by the electrification of homes, but it doesn’t fully address the desire for energy independence and security. Homes that only have solar panels must immediately consume or sell the electricity they generate. This is where residential battery storage plays a key role: decoupling when electricity is generated from when it is consumed, giving more control to the homeowner. This is even more valuable for homeowners who have already embraced the electrification of key appliances, systems, and vehicles. Storage lets them save the solar energy they generate and use it when it’s most valuable.

It’s not surprising, then, that 82% of solar professionals noticed an increased interest in battery storage from homeowners. This combination of solar plus storage helps homeowners achieve various levels of independence from the power grid and peace of mind that they’ll have power when they need it most, whether that’s in an emergency situation or simply when the cost of electricity is at its highest.

The home electrification trend may seem to be out of step with the concerns homeowners have with the costly and unreliable electricity grid. But homeowners are smart. As home electrification continues to gain steam, solar (and storage) installs will continue to go through the roof.

Chris Hopper is the CEO and cofounder of Aurora Solar.

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