Homeowners' interest in solar power is driving a boom in the U.S. residential energy storage market, and Goldman Sachs believes wider adoption will drive upside for companies in this nascent industry.
The firm said this market is still in the early stages, but that thus far its growth has exceed expectations.
"Deployment volumes have moved up in almost linear fashion over the past couple of years, and we expect the trends to continue in the near-medium term," Goldman said in a recent note to clients. The firm expects the market to cross $1 billion for the first time in 2022.
Goldman's call comes as grid operators in Texas and California have asked residents to cut electricity usage for fear of blackouts as temperatures soar. Each state has experienced devastating natural disasters over the last year, exacerbating issues for an already fragile grid.
Consumers are turning to solar plus storage options as a way to ensure power reliability.