Power system reliability is often in the news, driven by projections of rising demand alongside warnings of the risks of aging infrastructure. Recently, a U.S. Energy Information Administration (EIA) report stated that, in 2024, the nation’s electric utility customers experienced an average of 11 hours of power outages.

This data point deserves some unpacking—an increase in average outage times was driven by three major storms, rather than a nationwide reliability crisis. 

But the number of severe weather events seems to be increasing, meaning 2024 might not be an outlier moving forward. And, with the average years-in-service of utility equipment also on the rise, consumer interest in residential backup-power systems is growing.

Today’s customers are seeing new options beyond traditional home generators. Battery-based systems—even without connected rooftop solar panels—are gaining attention. Costs have come down significantly—as much as 90% since 2010. Utility incentives and time-of-use rate programs are also encouraging consumers to think about home-based power systems as more of an energy-­management tool than an emergency resource.

As a result, generator manufacturers are rethinking their marketing approaches. They’re adding batteries to their product lineups and developing hybrid generator-plus-storage solutions to support buyers’ increasingly electrified lifestyles all year long.

Stormy weather

In 2024, hurricanes Beryl, Helene and Milton did so much damage to regional grids that related outages drove up average outage times across the United States. The EIA attributed 80% of customer outage hours for the year to just those three storms. While this triple threat might have been an anomaly in a single year, there is a pattern of major storms increasing in severity.

For example, analysts with the meteorological research group Climate Central have noted that warming water temperatures drove up maximum wind speeds for Atlantic Basin hurricanes between 2019 and 2023 by an average of 18 miles per hour. And inland locations are seeing severe weather, such as tornadoes and extreme rainfall events, shift eastward into more densely populated areas.

Whether they’ve experienced such events themselves or simply witnessed news or social media coverage, consumers are looking for ways to keep their homes up and running should their local grid go down.

“On the psychological side, concern about outages and grid reliability is very high,” said Sean Grasby, senior vice president and general manager, construction and energy solutions for Wesco, Pittsburgh. “Power outages have increased over time, in part due to aging infrastructure and more frequent extreme weather events.”

As a result, Grasby said, backup power is shifting “from a discretionary purchase to a proactive investment in home resilience and energy independence.”

Energy storage comes home

A major factor enabling this shift in how consumers think about backup power, of course, is the emergence of modern home energy storage systems. Off-grid homeowners have had their own batteries for decades, but these were based on old-school lead-acid products that were time-consuming to maintain and impractical for broad adoption.

In 2015, Tesla introduced its Powerwall, the first lithium-ion based product specifically geared to residential applications. Since then, manufacturers, including Tesla, have continued to innovate, with inverters that more easily connect to rooftop solar arrays and homes’ grid-tied panels.

Additionally, software-based controls and connectivity now enable real-time participation in specialized utility rate offerings. These include rebates or lower rates for switching home electrical loads to batteries during peak demand periods. In some regions, these advantages can help storage systems pay for themselves, even without connected solar panels. As a result, according to Sequoya Cross, vice president of energy storage for Briggs & Stratton Energy Solutions, Wauwatosa, Wis., the customer profile for buyers of battery products is expanding beyond renewable energy enthusiasts.

“I think more people are interested in energy storage as a quiet way to back up their home, with or without solar,” she said, noting how residential solar power's economics have shifted with the elimination of federal tax credits. “The utility incentives just make it that much more attractive, especially when we have the residential credit going away.”

Briggs & Stratton has expanded from home generators into the home energy-­storage market. Generac, Waukesha Wis., has also made this move. Both companies purchased home battery startups to get into the business, with Briggs & Stratton buying SimpliPhi Power in 2021 and Generac acquiring Pika Energy in 2019. These moves have allowed both manufacturers to expand their brand identities beyond emergency power and incorporate energy solutions consumers can turn to every day.

Weighing options

Utilities and state power regulators are increasingly seeing battery systems as a “no wires” way to build peak capacity without adding new grid infrastructure. Unsurprisingly, California is a leader in this regard. In 2023, the focus of its generous solar incentives shifted to encourage home battery installations. These enable residents to use the electricity generated by their rooftop panels during the day later in the afternoon and evening. This relieves pressure on utilities, which had previously faced demand spikes when solar output faded.

Similar programs with varying combinations of rebates, rate structures and ongoing participation payments are now proving popular in about a dozen states. And, according to Cross, falling battery costs mean consumers can afford to support more—if not all—of their home’s energy needs with a battery system.

“As the price comes down for the equipment, you can add more capacity to support more load or longer duration—we’ve seen a decrease in price between 50% and 70% in the last five years for battery storage,” she said. “$1,200 dollars per kilowatt-­hour was not unheard of five years ago. We’re now at $250.”

Even with incentives and falling prices, though, traditional generators still rule the residential backup-power market. These buyers are looking for solutions that will keep fridge and furnace (or air conditioning) running and connected electronics online. 

“For extended, whole-home backup, generators tend to be the most dependable option that will be there as long as there is fuel,” said Jim Dawe, senior vice president of sales, marketing and strategy for Generac Home. However, he added, he’s now seeing a shift among some consumers away from backup power as simply a sort of outage insurance policy. Many also are looking for home-based energy systems that provide options for taking advantage of shifting utility rate structures. Hybrid approaches combining generators and batteries can meet this interest.

“Homeowners are thinking more holistically about reliability, energy costs and long-term flexibility,” Dawe said. “Installing both a generator and battery storage delivers an uncompromised backup experience for longer outages while unlocking the savings and incentives that come with storage. It’s not one or the other.” 

Grasby sees hybrid installations as an emerging trend for consumers who want to maximize the benefits offered by generators and batteries. 

“More customers are recognizing that batteries provide everyday value, while generators provide event-driven value,” he said. “That’s shifting decision-making—especially in regions with high electricity prices or strong electrification trends.”

How it works

Such hybrid systems provide more than just belt-and-suspenders outage security, according to Cross and Dawe. While they might not meet the technical definition of a microgrid—that’s actually a pretty wonky threshold to cross—functionally, a hybrid approach enables a home’s electrical system to ride out a multiday outage and manage peak-period pricing without interrupting household activities.

Such designs also can allow for smaller generators and reduced fuel use by making the battery system the primary load carrier. 

“You can prioritize battery backup and bring the generator in only as needed, either to support the home or recharge the battery,” Dawe said, which is especially helpful when a gas hookup isn’t available. “If the generator runs less because storage is helping, it can reduce fuel consumption, which matters if fuel is limited to what’s in the tank.”

A new entrant to the hybrid generator-­plus-storage market debuted at this year’s Consumer Electronics Show in January. Seattle-based Anker SOLIX’s E10 combines a stripped-down generator that feeds DC power to a dedicated, modular battery system with a built-in inverter that then connects through either a proprietary power dock or manual inlet box to a home’s main panel.

“This DC-to-DC approach eliminates the energy loss of AC conversion, allowing the generator to run at its most efficient constant rate,” said Sean Tan, the company’s public relations manager. 

“The result is roughly five times the fuel efficiency of a traditional AC standby generator, giving homeowners effectively unlimited backup duration during extended outages,” he said.

Anker SOLIX is going direct to consumers with this offering. Customers are referred to local contractors for installation from a network the company is establishing across the country.

Continuing integration

One trend Grasby expects to become more significant is the growing interest in supporting more of a home’s electrical load with whatever backup solution is chosen. As a result, system capacities are on the rise, along with the adoption of more sophisticated load controls. 

“This shift is driven by two factors: increased reliance on electricity as gas appliances are replaced, and a growing expectation that backup systems should maintain a normal lifestyle, rather than only essential loads,” he said. “This is also leading more consumers to choose higher capacity or hybrid systems.”

With greater complexity comes new opportunities for electrical contractors. “It’s not just the technology that evolves—it’s the role of the contractor,” Dawe said. “Dealers are moving beyond installing individual products and stepping into the role of whole-home energy adviser. Homeowners aren’t looking for more products, they’re looking for confidence in comfort, cost control and resilience.”

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