At Karma Wallet, we make it our mission to partner with companies that are changing the world. And with the shift to renewable energy more pressing than ever, we’ve teamed up with EnergySage to help our community make more confident energy decisions.

Each year, EnergySage releases their Intel Solar and Storage Marketplace Report which analyzes millions of data points from homeowners shopping on EnergySage for solar panels, inverters, and batteries from solar companies across the US. They bring together insights and education – so you can learn about the dynamics of the US solar industry today.

We interviewed the EnergySage team to get the full scoop on their 2024 report. Let’s dive in!

About EnergySage 

What inspired the creation of the EnergySage Intel Solar and Storage Marketplace Report, and what are the primary goals for sharing this data with the public?

Making solar and clean energy more transparent is one of the key parts of our mission at EnergySage. We do that through our Solar & Storage Marketplace, which allows homeowners to receive and compare custom solar and storage quotes online. But making our data more transparent is key to living our mission of transparency. Rooftop solar is a first-time purchase for most homeowners, so by publishing our data, we can help shoppers better understand what they can expect to pay for solar, how much solar they will need, and provide some confidence to invest in brands that may be new to them. 

Were there any significant challenges or surprises you found when compiling the data for this 19th edition?

The biggest surprise in our most recent Marketplace Report was the uptick in storage attachment rates, which is the percentage of solar adopters who decide to buy a battery at the same time. Historically, we’ve seen a nationwide battery attachment rate of about 10%.

We anticipated that it would increase in California as a result of the transition away from net metering, and the results in our Marketplace proved that hypothesis right: 70% of California solar adopters added a battery to their installation on EnergySage in the first half of the year. But what was really surprising was the increase in attachment rate outside of California, as the average attachment rate in non-CA states rose to 22%, a record on EnergySage.

The report highlights that residential solar prices are near an all-time low. What are the main factors driving this trend, and do you expect it to continue? What key factors contributed to the recent decline in both solar and battery storage prices in 2024?

In the first half of 2024, we saw solar prices drop to $2.69 per watt, which are close to the all-time lows we observed in the middle of 2021. From our perspective, this represents a return to a baseline more than it does a notable price decline.

Prices shot up in 2022 as the impact of the pandemic extended to supply chain and labor shortages, and as inflation hit the solar industry. So it’s good to see prices back to where they were before a few higher-priced years. 

Despite a low price being offered, many EnergySage shoppers opt for higher-priced quotes. The report notes that 60% of shoppers didn’t select the lowest-priced quote. What are the primary non-price factors influencing these decisions?

Solar shoppers on EnergySage are not just looking at price. They’re also looking at the quality of the equipment included in their quotes, as well as the overall quality and experience with the solar installer. For equipment, homeowners look to find the best value by looking at both performance and price. They’re also interested in warranties to ensure they’re protected if something goes wrong with the system.

To decide on an installer, homeowners typically look at ratings and reviews, ask for references, and place importance on how communicative installers are. However, once homeowners are sure that they’re paying a fair price for the right system, the cost often doesn’t matter as much as those other factors. 

Looking to the Future

Given the rapid changes in the solar and storage industries, how do you foresee the evolution of the marketplace in the next few years? What future trends do you expect in solar financing and consumer behavior as interest rates fluctuate?

The biggest change we see in the industry from a consumer perspective is that we’ve truly moved into a “solar-plus” era. Solar is no longer a single purchase, but rather a part of a broader electrification journey for homeowners, whether it includes a battery, an electric vehicle, heat pumps, or any other new electrified appliance. That means a more complex journey for shoppers, which we hope to help them to navigate with an expanded EnergySage Marketplace.

In terms of solar financing, that’s hard to predict. The majority of solar shoppers finance their project with a loan, so interest rates coming back down is a win-win for solar and homeowners. The big thing is that the less homeowners pay for solar (whether financed or otherwise), the more capital they’ll have available to invest in other energy-saving, emission-reducing electrification projects. 

How do you see the integration of whole-home energy solutions evolving over the next few years?

Whole-home energy solutions are taking off! We expect 2-3 million heat pump systems to be installed per year, and nearly 1 million level 2 EV chargers installed per year through the end of this decade. And we expect residential solar installations to double as a result. As more homeowners electrify more aspects of their lives, the integration of the products and the sequencing decisions around what to buy and when all become more complex, which means there’s an opportunity for educating and helping consumers to build the right whole-home energy solution for their needs.

Are there any upcoming regulatory or policy changes on the horizon that you think could significantly affect solar adoption nationwide?

A lot could change with the election, and not just at the federal level. It will take a while to see how the impact of those results shake out to the energy industry.

But the biggest regulatory challenge to solar is in reducing net metering credits. Some states, like California and Illinois, have already reduced the value of solar sent back to the grid, and we expect other states to follow. This will make it more financially important to consume as much of the solar your panels generate on site, either by shifting demand or by adding a battery to hold the solar generation until you need it in the evening or overnight. 

How do you think supply chain issues and global energy crises have influenced solar and storage market trends in recent years?

Our understanding is that supply chain issues have driven an uptick in the cost of solar in the US over the last couple of years which is only now beginning to resolve. Global energy crises, on the other hand, can drive interest in and adoption of clean, distributed resources, like solar and storage. Those crises demonstrated just how interconnected our global energy infrastructure is, and belied the need for independence and resiliency from spikes in energy pricing. 

How does EnergySage plan to continue expanding its marketplace across all 50 states, and what challenges do you foresee in scaling further?

As of July 2024, EnergySage is working with installers in all 50 states and Washington, D.C., which is a huge milestone. There’s demand for solar everywhere, and now we’re working hard to ensure we–and our installer partners in those areas–can meet it.

One of the biggest challenges moving forward is to continue to get EnergySage in front of other types of consumers. Solar shoppers generally have higher-than-average incomes and we as an industry need to do a better job of helping to educate and design products for all types of consumers throughout the country. 

Karma Wallet & EnergySage 

How does EnergySage identify which partners, like Karma Wallet, it wants to collaborate with?

EnergySage identifies potential partners like Karma Wallet by seeking those who are mission-aligned with our goals of protecting the planet and building a future powered by clean energy. We prioritize collaboration with trusted, reputable organizations that span brands, utilities, nonprofits, and state agencies, among other industries, all dedicated to helping their audiences take meaningful climate action at home.

Often, employees are seeking ways their employers can become more involved in combating climate change and end up proactively introducing our team as a solution for their employer to highlight for all its employees.

Ready to start your journey with EnergySage? Get started below!