Guidehouse Insights Estimates Global Market for Distributed Energy Resources Installed at Residences Will Grow to $69 Billion by 2031

Barriers to adoption include a complicated buying process, uncertain financial returns, and mercurial legislation

BOULDER, Colo., Oct. 18, 2022 /PRNewswire/ -- A new report from Guidehouse Insights analyzes the market for residential distributed energy resources (DER).

The simplest and most common approach homeowners take to their energy supply is to depend on the local grid and hope it is reliable, but increasingly homeowners are adding residential DER to their homes. In most cases, they intend to supplement power from the grid, but some are also seeking to reduce or eliminate any reliance on grid power. According to a new report from Guidehouse Insights, the residential DER market is expected to grow at a compound annual growth rate (CAGR) of 6.1% from $40.5 billion in 2022 to $68.8 billion by 2031, which shows solid growth over the coming decade.

"Two primary reasons for installing DER are to minimize the inconvenience and damage from power outages and to generate renewable power from sunlight and wind that would otherwise be untapped," says William Hughes, principal research analyst with Guidehouse Insights. "Ultimately, homeowners who invest in residential DER will do so to minimize the consequences of grid power outages or to participate directly in increasing the amount of renewable energy generated, or perhaps both."

The buying process for acquiring and installing DER technologies is complicated for most homeowners. Several critical variables are unique to each home and homeowners must decide among numerous options without full information on how they will impact the price. This slows faster adoption. Other factors influencing the buying decision are local regulations and regional tariffs, according to the report.

The report, Residential Distributed Energy Resources, examines the adoption of residential DER including solar panels, home standby generators, and residential wind turbines. Guidehouse Insights estimates that the residential DER market will grow at a compound annual growth rate of 6.1% from $40.5 billion in 2022 to $68.8 billion by 2031. The estimated growth for solar panels is the fastest growing technology, showing a 7.0% CAGR. The growth rate for fossil fuel gensets is small but will likely continue to remain a significant percentage of capacity. Wind turbines for residences will likely grow but remain a small percentage of overall DER capacity. An executive summary of the report is available for free download on the Guidehouse Insights website.

Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today's rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.

Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has approximately 16,000 professionals in over 50 locations globally. Guidehouse is a Veritas Capital portfolio company, led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit www.guidehouse.com.

* The information contained in this press release concerning the report, Residential Distributed Energy Resources, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.

For more information, contact:

Cecile Fradkin
+1.646.941.9139
[email protected]

SOURCE Guidehouse Insights