Solar Roofs, Battery Garages
Fred Wilson
@fredwilson
−2.2%
since Jul 29
The idea
I believe solar-plus-battery becomes the default home energy setup over the next decade, with falling hardware costs and rising utility rates feeding each other even though the sector is out of favor right now. I own the whole stack instead of picking one winner: equipment makers, battery and lithium suppliers, electrification infrastructure, and the surviving rooftop installers, with large-cap names for ballast next to the cheaper, riskier ones.
What it owns
- Solar-plus-battery homes require new electrical infrastructure, panels, wiring, meters, and switchgear, creating steady demand for industrial equipment makers regardless of which installer or battery brand wins. · Eaton CorporationManufactures breaker panels, switchgear, and power-management systems that every solar-plus-battery retrofit requires, large-cap stability that wins on electrification even if solar adoption is slower., Hubbell IncorporatedSupplies grid-edge hardware needed as millions of homes begin exporting power back to a grid originally built for one-way flow., Wesco InternationalIt serves as the primary distribution channel through which electricians source equipment, so the take benefits from electrification demand regardless of which equipment manufacturer gains market share., Itron Inc.Smart meters and grid-edge software enable utilities to manage millions of solar-and-battery homes, essential infrastructure for bidirectional grid operations.25%
- Inverters, home batteries, and backup generators get installed as a system regardless of which company wins the rooftop, the picks-and-shovels layer of residential solar expansion. · Enphase EnergyDominant US microinverter maker expanding into home batteries and EV charging, it controls the brains of the solar-plus-storage home and gets paid by every installer., Generac HoldingsThe brand homeowners trust for grid backup, now expanding into home batteries and energy management, plays both the reliability and storage halves of residential electrification., SolarEdge TechnologiesInverter maker in early recovery with revenue stabilizing on European demand and battery segment share gains, leveraged to any residential solar reacceleration.22%
- Home battery adoption is accelerating faster than rooftop solar itself, every battery installed in a garage or basement represents direct unit growth for these companies. · Tesla Inc.Powerwall is the world's most recognized home battery and its energy storage business is growing faster than its core automotive revenue., EnerSysProfitable industrial battery maker expanding into residential and distributed storage, provides steady earnings within the most volatile segment of this theme., Fluence EnergyPure-play battery storage integrator that sells the same core technology to utilities at grid scale as residential customers install at home scale.19%
- The residential solar sector has been structurally beaten down, and surviving installers stand to capture significant upside if home adoption accelerates. · Sunrun Inc.Largest US residential solar installer with a structural cost advantage through third-party ownership models that qualify for federal tax credits, the consolidation winner as weaker installers fail., Invesco Solar ETFDiversified exposure across the global solar supply chain without single-company risk in a sector still consolidating.14%
- Millions of home batteries require raw lithium, material suppliers win across all battery brands and installer models. · Albemarle CorporationLargest Western lithium producer survives commodity price downturns that eliminate smaller competitors, and home batteries structurally increase long-term demand., Sociedad Química y Minera de ChileOne of the lowest-cost lithium producers via Chilean brine operations, survives margin compression and amplifies gains if home storage demand tightens supply.10%
- Cash10%