German automaker Daimler will go into the nascent U.S. market for home batteries via a collaboration with residential rooftop solar installer Vivint Solar, the two companies confirmed this week.
The unique partnership, Vivint’s first venture into energy storage, will enable the companies to rival against comparable offerings from Tesla Inc, solar installer Sunrun Inc, battery maker LG Chem Ltd and more.
The market for energy storage is little, but proliferating as the expenses of lithium-ion batteries drop. Last year the industry generated $320 million in income in the United States, though domestic systems comprised just 4 percent of the overall.
Home battery systems allow customers to keep solar power created throughout the day for use after sunset, a time when they may charge an electrical vehicle. Ultimately, as utilities transfer to charging greater rates for power used in the evening, when demand is greatest, the batteries could bring clients significant savings. They can likewise provide backup power.
Daimler will offer the batteries through its Mercedes-Benz Energy subsidiary established in 2016, bringing its aspirational vehicle brand to the home energy market in similar way Tesla has with its Powerwall batteries.
The head of Mercedes-Benz Energy Americas, Boris von Bormann, stated that getting in the home storage market was a natural development for the luxury automobile brand.
“In the future when someone enter a dealer and they are planning to purchase an EV, they are asking for a number of solutions and storage will be among them,” he stated.
Vivint CEO David Bywater said solar consumers are progressively requiring an energy “ecosystem” that consists of home energy management, storage and electric automobile charging.
Mercedes-Benz “will assist us both on the home storage in addition to the EV charging stations gradually,” Bywater stated.