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OpenAI boasts enterprise win days after internal ‘code red’ on Google threat | TechCrunch

OpenAI boasts enterprise win days after internal ‘code red’ on Google threat | TechCrunch

OpenAI released new data Monday showing enterprise usage of its AI tools has surged dramatically over the past year, with ChatGPT message volume growing 8x since November 2024 and workers reporting they’re saving up to an hour daily. The findings arrive a week after CEO Sam Altman sent an internal “code red” memo about the competitive threat of Google.

The timing underscores OpenAI’s push to reframe its position as the enterprise AI leader, even as it faces mounting pressures. While close to 36% of U.S. businesses are ChatGPT Enterprise customers compared to 14.3% for Anthropic, per Ramp AI Index, the majority of OpenAI’s revenue still comes from consumer subscriptions — a base that’s being threatened by Google’s Gemini. OpenAI also must compete against rival AI firm Anthropic — whose revenue comes mainly from B2B sales – and, increasingly, open-weight model providers for enterprise customers.

The AI giant has committed  $1.4 trillion to infrastructure commitments over the next few years, making enterprise growth essential to its business model. 

“If you think about it from an economic growth perspective, consumers really matter,” Ronnie Chatterji, OpenAI’s chief economist, said during a briefing. “But when you look at historically transformative technologies like the steam engine, it’s when firms adopt and scale these technologies that you really see the biggest economic benefits.”

OpenAI’s new findings suggest that adoption among larger enterprises is not only growing but becoming more integrated into workflows. Employees aren’t only sending more messages — organizations using OpenAI’s API (its developer interface) are consuming 320 times more “reasoning tokens” than they were a year ago, suggesting companies are using AI for more complex problem-solving. That, or they are experimenting heavily with the new tech and burning through tokens, without necessarily getting long-term value. 

That increase in reasoning tokens, which correlates with increased energy usage, could be expensive for companies and therefore not sustainable in the long term. TechCrunch has asked OpenAI about enterprise budget allocation for AI and the sustainability of this growth rate. 

Image Credits:OpenAI

Beyond raw usage metrics, OpenAI is also seeing changes in how companies deploy its tools. Use of custom GPTs — which companies use to codify institutional knowledge into assistants or automate workflows —  jumped 19x this year, now accounting for 20% of enterprise messages, the report found. OpenAI pointed to digital bank customer BBVA, which it says regularly uses over 4,000 custom GPTs.

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“It shows you how much people are really able to take this powerful technology and start to customize it to the things that are useful to them,” said Brad Lightcap, OpenAI’s chief operating officer, during the briefing.

These integrations have led to meaningful time savings, according to OpenAI. Participants reported saving 40 to 60 minutes per day with OpenAI’s enterprise products — though that may not include time spent learning the systems, prompting, or correcting AI output. 

The report found that enterprise workers are also increasingly leveraging AI tools to expand their own capabilities. Three quarters of those surveyed say AI enables them to do things, including technical tasks, they couldn’t do before. OpenAI reported a 36% increase in coding-related messages outside of engineering, IT, and research teams. 

While OpenAI drove home the idea that its technology is democratizing access to skills, it’s important to note that more vibe coding could lead to more security vulnerabilities and other flaws. When asked about this, Lightcap pointed to OpenAI’s recent release of its agentic security researcher Aardvark, which is in private beta, as a potential way to detect bugs, vulnerabilities, and exploits. 

The gaps are widest between frontier and median workers for writing, coding, and analysis. Image Credits:OpenAI

OpenAI’s report also found that even the most active ChatGPT Enterprise users aren’t using the most advanced tools available to them, like data analysis, reasoning, or search. During the briefing, Lightcap mused that this was because fully adopting AI systems requires a mindset shift and deeper integration with enterprise data and processes. Adoption of advanced features will take time, he said, as companies retool workflows to better understand what’s possible. 

Lightcap and Chatterji also stressed a report finding that showed a “growing divide in AI adoption,” with some “frontier” workers using more tools more often to save more time than the “laggards.”

“There are firms that still very much see these systems as a piece of software, something I can buy and give to my teams and that’s kind of the end of it,” Lightcap said. “And then there are companies that are really starting to embrace it, almost more like an operating system. It’s basically a re-platforming of a lot of the company’s operations.”

OpenAI’s leadership — which certainly feels the pressure of the firm’s $1.4 trillion in infrastructure commitments — framed this as an opportunity for laggards to catch up. For workers training AI systems to replicate their work, “catching up” might feel more like a countdown.

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#OpenAI #boasts #enterprise #win #days #internal #code #red #Google #threat #TechCrunch


If you were thinking of seeing Minions & Monstersor at least taking your kid to see it, here’s something to sweeten the pot: George Lucas is in it.

Illumination head Chris Meledandri broke the news in a recent Collider interview, where he revealed the Star Wars creator is secretly a fan of Despicable Me’s chatty champions. “It was such a thrill to learn and share that with the team,” said Meledandri, “He’s among a very small group of people who the entire studio shares a level of respect for that is just off the charts.” Given Lucas’ affection for funny little guys, it makes sense that he loves the biggest little guys of our current movie era.

Now that they knew they had Lucas in their corner, the team decided what the hey, get him to do a voice for the movie. Meledandri said an “idea for a character” was born that fit the bill, and they got “a fast yes” when it was pitched. At time of writing, Illumination’s quiet on who Lucas will be, but it’s worth noting that Minions & Monsters takes place in the 1920s as the crew try to make their own movie. Lucas’ love for older films is apparent in Star Wars and Indiana Jones, so maybe he’ll be a director that ends up getting trampled by the Minions. Maybe he’ll even be one himself who just looks like a little yellow George Lucas, that’d be fun.

Look for Minions & Monsters to hit theaters on July 1.

Want more io9 news? Check out when to expect the latest Marvel, Star Wars, and Star Trek releases, what’s next for the DC Universe on film and TV, and everything you need to know about the future of Doctor Who.

#George #Lucas #Minions #MonstersGeorge Lucas,Illumination,Minions,Minions and Monsters,Star Wars">George Lucas Will Be In ‘Minions & Monsters’
                If you were thinking of seeing Minions & Monsters, or at least taking your kid to see it, here’s something to sweeten the pot: George Lucas is in it. Illumination head Chris Meledandri broke the news in a recent Collider interview, where he revealed the Star Wars creator is secretly a fan of Despicable Me’s chatty champions. “It was such a thrill to learn and share that with the team,” said Meledandri, “He’s among a very small group of people who the entire studio shares a level of respect for that is just off the charts.” Given Lucas’ affection for funny little guys, it makes sense that he loves the biggest little guys of our current movie era. Now that they knew they had Lucas in their corner, the team decided what the hey, get him to do a voice for the movie. Meledandri said an “idea for a character” was born that fit the bill, and they got “a fast yes” when it was pitched. At time of writing, Illumination’s quiet on who Lucas will be, but it’s worth noting that Minions & Monsters takes place in the 1920s as the crew try to make their own movie. Lucas’ love for older films is apparent in Star Wars and Indiana Jones, so maybe he’ll be a director that ends up getting trampled by the Minions. Maybe he’ll even be one himself who just looks like a little yellow George Lucas, that’d be fun. Look for Minions & Monsters to hit theaters on July 1.  Want more io9 news? Check out when to expect the latest Marvel, Star Wars, and Star Trek releases, what’s next for the DC Universe on film and TV, and everything you need to know about the future of Doctor Who.      #George #Lucas #Minions #MonstersGeorge Lucas,Illumination,Minions,Minions and Monsters,Star Wars

Minions & Monstersor at least taking your kid to see it, here’s something to sweeten the pot: George Lucas is in it.

Illumination head Chris Meledandri broke the news in a recent Collider interview, where he revealed the Star Wars creator is secretly a fan of Despicable Me’s chatty champions. “It was such a thrill to learn and share that with the team,” said Meledandri, “He’s among a very small group of people who the entire studio shares a level of respect for that is just off the charts.” Given Lucas’ affection for funny little guys, it makes sense that he loves the biggest little guys of our current movie era.

Now that they knew they had Lucas in their corner, the team decided what the hey, get him to do a voice for the movie. Meledandri said an “idea for a character” was born that fit the bill, and they got “a fast yes” when it was pitched. At time of writing, Illumination’s quiet on who Lucas will be, but it’s worth noting that Minions & Monsters takes place in the 1920s as the crew try to make their own movie. Lucas’ love for older films is apparent in Star Wars and Indiana Jones, so maybe he’ll be a director that ends up getting trampled by the Minions. Maybe he’ll even be one himself who just looks like a little yellow George Lucas, that’d be fun.

Look for Minions & Monsters to hit theaters on July 1.

Want more io9 news? Check out when to expect the latest Marvel, Star Wars, and Star Trek releases, what’s next for the DC Universe on film and TV, and everything you need to know about the future of Doctor Who.

#George #Lucas #Minions #MonstersGeorge Lucas,Illumination,Minions,Minions and Monsters,Star Wars">George Lucas Will Be In ‘Minions & Monsters’George Lucas Will Be In ‘Minions & Monsters’
                If you were thinking of seeing Minions & Monsters, or at least taking your kid to see it, here’s something to sweeten the pot: George Lucas is in it. Illumination head Chris Meledandri broke the news in a recent Collider interview, where he revealed the Star Wars creator is secretly a fan of Despicable Me’s chatty champions. “It was such a thrill to learn and share that with the team,” said Meledandri, “He’s among a very small group of people who the entire studio shares a level of respect for that is just off the charts.” Given Lucas’ affection for funny little guys, it makes sense that he loves the biggest little guys of our current movie era. Now that they knew they had Lucas in their corner, the team decided what the hey, get him to do a voice for the movie. Meledandri said an “idea for a character” was born that fit the bill, and they got “a fast yes” when it was pitched. At time of writing, Illumination’s quiet on who Lucas will be, but it’s worth noting that Minions & Monsters takes place in the 1920s as the crew try to make their own movie. Lucas’ love for older films is apparent in Star Wars and Indiana Jones, so maybe he’ll be a director that ends up getting trampled by the Minions. Maybe he’ll even be one himself who just looks like a little yellow George Lucas, that’d be fun. Look for Minions & Monsters to hit theaters on July 1.  Want more io9 news? Check out when to expect the latest Marvel, Star Wars, and Star Trek releases, what’s next for the DC Universe on film and TV, and everything you need to know about the future of Doctor Who.      #George #Lucas #Minions #MonstersGeorge Lucas,Illumination,Minions,Minions and Monsters,Star Wars

If you were thinking of seeing Minions & Monstersor at least taking your kid to see it, here’s something to sweeten the pot: George Lucas is in it.

Illumination head Chris Meledandri broke the news in a recent Collider interview, where he revealed the Star Wars creator is secretly a fan of Despicable Me’s chatty champions. “It was such a thrill to learn and share that with the team,” said Meledandri, “He’s among a very small group of people who the entire studio shares a level of respect for that is just off the charts.” Given Lucas’ affection for funny little guys, it makes sense that he loves the biggest little guys of our current movie era.

Now that they knew they had Lucas in their corner, the team decided what the hey, get him to do a voice for the movie. Meledandri said an “idea for a character” was born that fit the bill, and they got “a fast yes” when it was pitched. At time of writing, Illumination’s quiet on who Lucas will be, but it’s worth noting that Minions & Monsters takes place in the 1920s as the crew try to make their own movie. Lucas’ love for older films is apparent in Star Wars and Indiana Jones, so maybe he’ll be a director that ends up getting trampled by the Minions. Maybe he’ll even be one himself who just looks like a little yellow George Lucas, that’d be fun.

Look for Minions & Monsters to hit theaters on July 1.

Want more io9 news? Check out when to expect the latest Marvel, Star Wars, and Star Trek releases, what’s next for the DC Universe on film and TV, and everything you need to know about the future of Doctor Who.

#George #Lucas #Minions #MonstersGeorge Lucas,Illumination,Minions,Minions and Monsters,Star Wars

With electricity costs soaring, home batteries have never looked so attractive. Whether you want to store the excess generated by your solar panels or simply buy electricity at the cheapest possible rate to use later when power is most expensive, a home battery can help. It’s never been easier to get a home battery installed, but this rapidly expanding market can be confusing, and there are several things to consider before you buy.

I’ve spent months researching home batteries, chatting to folks who use them, and then having one installed myself, and I have tips for anyone interested in getting a home battery of their own.

Why Would You Want a Home Battery?

There are several reasons you might want to invest in a home battery, and they are not mutually exclusive:

  • You want to store excess power from your solar panels.
  • You want to live off-grid.
  • You want to guard against power outages.
  • You want to buy electricity at a cheap rate and store it for use later.

Home batteries are a win-win, potentially benefiting power companies too, because battery storage is an essential part of grid balancing and can help manage and make the most of the intermittent power generated by renewables (solar, wind, waves).

How Do Home Batteries Work?

Image may contain Appliance Device Electrical Device and Refrigerator

Photograph: Simon Hill

A home battery is like a big power bank for your home. But rather than lithium-ion, they tend to be lithium iron phosphate (LFP or LiFePO4), because it is safer, more durable, and less prone to thermal runaway. In other words, less likely to overheat and burst into flames. There are a few manufacturers working with sodium-ion (Na-ion) batteries, which are potentially cheaper, more environmentally friendly (they don’t require lithium), and perform better in the cold, but they are also larger and don’t last as long.

Home battery technology is often the same as you’ll find in electric vehicles. Some folks have even suggested employing EV batteries as home batteries. But there are potential issues with that, not least finding your car battery drained in the morning. EVs are also driving the technology forward toward solid-state batteries, which are smaller for the same capacity, safer as they don’t have liquid electrolytes inside, and longer lasting.

Many home batteries come in modular systems, so you can add the capacity you want, but they require an inverter to convert the DC (direct current) power stored to AC (alternating current) power you can use. Folks with solar panels, or those who plan to add them in the future, should opt for a hybrid inverter, which can also convert the power from the panels for use or storage.

Inverters have different power ratings in kilowatts (kW) that dictate how much power you can draw at any given moment. Households with modest needs may get by with a 3.6-kW inverter, but that limits your continuous draw to 3.6 kW. They usually have a peak load capability that goes higher, enabling you to pull more for a brief period. If you have high-demand appliances like an EV charger or heat pump, you will want at least 5 kW, and folks with larger demands or larger batteries will want to go higher (6 to 10 kW).

What Should I Look For?

There are several things to watch out for when buying a home battery:

  • Capacity: Measured in kilowatt-hours (kWh), this tells you how much total energy the battery can hold.
  • Power output: Measured in kilowatts (kW), this shows how much energy the battery and inverter can deliver at any moment.
  • Depth of discharge: This is how much of the battery’s capacity you can safely use without damaging it.
  • Efficiency: This is the percentage of the power you put into the battery that you can actually use, because some energy is always lost in the storage process.
  • Warranty: This is a guarantee about the minimum performance you can expect before a battery degrades (they all degrade over time), and it’s often stated in years and charging cycles (whichever comes first). For example, EcoFlow promises at least 70 percent capacity after 15 years or 6,000 charging cycles.

How Much Home Battery Do You Need?

Image may contain Electronics Mobile Phone Phone Computer Hardware and Hardware

EcoFlow via Simon Hill

It can be tricky to calculate how much battery capacity you need, and it depends on your use case. If you want to guard against outages or live off-grid, you must consider how much power you use over time and also the sum of your maximum power usage at any given moment to ensure your capacity in kWh and output in kW are enough. If the output is not high enough you may not be able to run power-hungry appliances at the same time, so you’ll have to think about how you use your power.

For folks like me, simply looking to buy at a cheaper rate to use when power is more expensive, any capacity will benefit you. But if you have a cheap six-hour rate overnight, for example, then you ideally want it to last for the other 18 hours. It makes sense to get as much as you can up-front because the installation costs are high. Even adding to modular systems later often requires professional installation to avoid voiding your warranty.

Do You Need Upgrades or Permission?

The home battery will connect to your main electrical panel via a cable, and it may require some upgrades. There was no room on my fuse board when I got a home battery installed, so they had to install a second breaker box.

Some inverters may require permission from your electric distribution utility or local distribution company. Here in Scotland, the distribution network operator must approve your inverter, but you can install and then notify up to 3.6 kW, whereas larger inverters require prior approval.

#Home #Batteries #Arent #Doomsday #Preppers #Heresshopping,energy,batteries,how-to,smart home,power">Home Batteries Aren’t Just for Doomsday Preppers. Here’s Why You Might Want OneWith electricity costs soaring, home batteries have never looked so attractive. Whether you want to store the excess generated by your solar panels or simply buy electricity at the cheapest possible rate to use later when power is most expensive, a home battery can help. It’s never been easier to get a home battery installed, but this rapidly expanding market can be confusing, and there are several things to consider before you buy.I’ve spent months researching home batteries, chatting to folks who use them, and then having one installed myself, and I have tips for anyone interested in getting a home battery of their own.Why Would You Want a Home Battery?There are several reasons you might want to invest in a home battery, and they are not mutually exclusive:You want to store excess power from your solar panels.You want to live off-grid.You want to guard against power outages.You want to buy electricity at a cheap rate and store it for use later.Home batteries are a win-win, potentially benefiting power companies too, because battery storage is an essential part of grid balancing and can help manage and make the most of the intermittent power generated by renewables (solar, wind, waves).How Do Home Batteries Work?Photograph: Simon HillA home battery is like a big power bank for your home. But rather than lithium-ion, they tend to be lithium iron phosphate (LFP or LiFePO4), because it is safer, more durable, and less prone to thermal runaway. In other words, less likely to overheat and burst into flames. There are a few manufacturers working with sodium-ion (Na-ion) batteries, which are potentially cheaper, more environmentally friendly (they don’t require lithium), and perform better in the cold, but they are also larger and don’t last as long.Home battery technology is often the same as you’ll find in electric vehicles. Some folks have even suggested employing EV batteries as home batteries. But there are potential issues with that, not least finding your car battery drained in the morning. EVs are also driving the technology forward toward solid-state batteries, which are smaller for the same capacity, safer as they don’t have liquid electrolytes inside, and longer lasting.Many home batteries come in modular systems, so you can add the capacity you want, but they require an inverter to convert the DC (direct current) power stored to AC (alternating current) power you can use. Folks with solar panels, or those who plan to add them in the future, should opt for a hybrid inverter, which can also convert the power from the panels for use or storage.Inverters have different power ratings in kilowatts (kW) that dictate how much power you can draw at any given moment. Households with modest needs may get by with a 3.6-kW inverter, but that limits your continuous draw to 3.6 kW. They usually have a peak load capability that goes higher, enabling you to pull more for a brief period. If you have high-demand appliances like an EV charger or heat pump, you will want at least 5 kW, and folks with larger demands or larger batteries will want to go higher (6 to 10 kW).What Should I Look For?There are several things to watch out for when buying a home battery:Capacity: Measured in kilowatt-hours (kWh), this tells you how much total energy the battery can hold.Power output: Measured in kilowatts (kW), this shows how much energy the battery and inverter can deliver at any moment.Depth of discharge: This is how much of the battery’s capacity you can safely use without damaging it.Efficiency: This is the percentage of the power you put into the battery that you can actually use, because some energy is always lost in the storage process.Warranty: This is a guarantee about the minimum performance you can expect before a battery degrades (they all degrade over time), and it’s often stated in years and charging cycles (whichever comes first). For example, EcoFlow promises at least 70 percent capacity after 15 years or 6,000 charging cycles.How Much Home Battery Do You Need?EcoFlow via Simon HillIt can be tricky to calculate how much battery capacity you need, and it depends on your use case. If you want to guard against outages or live off-grid, you must consider how much power you use over time and also the sum of your maximum power usage at any given moment to ensure your capacity in kWh and output in kW are enough. If the output is not high enough you may not be able to run power-hungry appliances at the same time, so you’ll have to think about how you use your power.For folks like me, simply looking to buy at a cheaper rate to use when power is more expensive, any capacity will benefit you. But if you have a cheap six-hour rate overnight, for example, then you ideally want it to last for the other 18 hours. It makes sense to get as much as you can up-front because the installation costs are high. Even adding to modular systems later often requires professional installation to avoid voiding your warranty.Do You Need Upgrades or Permission?The home battery will connect to your main electrical panel via a cable, and it may require some upgrades. There was no room on my fuse board when I got a home battery installed, so they had to install a second breaker box.Some inverters may require permission from your electric distribution utility or local distribution company. Here in Scotland, the distribution network operator must approve your inverter, but you can install and then notify up to 3.6 kW, whereas larger inverters require prior approval.#Home #Batteries #Arent #Doomsday #Preppers #Heresshopping,energy,batteries,how-to,smart home,power

having one installed myself, and I have tips for anyone interested in getting a home battery of their own.

Why Would You Want a Home Battery?

There are several reasons you might want to invest in a home battery, and they are not mutually exclusive:

  • You want to store excess power from your solar panels.
  • You want to live off-grid.
  • You want to guard against power outages.
  • You want to buy electricity at a cheap rate and store it for use later.

Home batteries are a win-win, potentially benefiting power companies too, because battery storage is an essential part of grid balancing and can help manage and make the most of the intermittent power generated by renewables (solar, wind, waves).

How Do Home Batteries Work?

Image may contain Appliance Device Electrical Device and Refrigerator

Photograph: Simon Hill

A home battery is like a big power bank for your home. But rather than lithium-ion, they tend to be lithium iron phosphate (LFP or LiFePO4), because it is safer, more durable, and less prone to thermal runaway. In other words, less likely to overheat and burst into flames. There are a few manufacturers working with sodium-ion (Na-ion) batteries, which are potentially cheaper, more environmentally friendly (they don’t require lithium), and perform better in the cold, but they are also larger and don’t last as long.

Home battery technology is often the same as you’ll find in electric vehicles. Some folks have even suggested employing EV batteries as home batteries. But there are potential issues with that, not least finding your car battery drained in the morning. EVs are also driving the technology forward toward solid-state batteries, which are smaller for the same capacity, safer as they don’t have liquid electrolytes inside, and longer lasting.

Many home batteries come in modular systems, so you can add the capacity you want, but they require an inverter to convert the DC (direct current) power stored to AC (alternating current) power you can use. Folks with solar panels, or those who plan to add them in the future, should opt for a hybrid inverter, which can also convert the power from the panels for use or storage.

Inverters have different power ratings in kilowatts (kW) that dictate how much power you can draw at any given moment. Households with modest needs may get by with a 3.6-kW inverter, but that limits your continuous draw to 3.6 kW. They usually have a peak load capability that goes higher, enabling you to pull more for a brief period. If you have high-demand appliances like an EV charger or heat pump, you will want at least 5 kW, and folks with larger demands or larger batteries will want to go higher (6 to 10 kW).

What Should I Look For?

There are several things to watch out for when buying a home battery:

  • Capacity: Measured in kilowatt-hours (kWh), this tells you how much total energy the battery can hold.
  • Power output: Measured in kilowatts (kW), this shows how much energy the battery and inverter can deliver at any moment.
  • Depth of discharge: This is how much of the battery’s capacity you can safely use without damaging it.
  • Efficiency: This is the percentage of the power you put into the battery that you can actually use, because some energy is always lost in the storage process.
  • Warranty: This is a guarantee about the minimum performance you can expect before a battery degrades (they all degrade over time), and it’s often stated in years and charging cycles (whichever comes first). For example, EcoFlow promises at least 70 percent capacity after 15 years or 6,000 charging cycles.

How Much Home Battery Do You Need?

Image may contain Electronics Mobile Phone Phone Computer Hardware and Hardware

EcoFlow via Simon Hill

It can be tricky to calculate how much battery capacity you need, and it depends on your use case. If you want to guard against outages or live off-grid, you must consider how much power you use over time and also the sum of your maximum power usage at any given moment to ensure your capacity in kWh and output in kW are enough. If the output is not high enough you may not be able to run power-hungry appliances at the same time, so you’ll have to think about how you use your power.

For folks like me, simply looking to buy at a cheaper rate to use when power is more expensive, any capacity will benefit you. But if you have a cheap six-hour rate overnight, for example, then you ideally want it to last for the other 18 hours. It makes sense to get as much as you can up-front because the installation costs are high. Even adding to modular systems later often requires professional installation to avoid voiding your warranty.

Do You Need Upgrades or Permission?

The home battery will connect to your main electrical panel via a cable, and it may require some upgrades. There was no room on my fuse board when I got a home battery installed, so they had to install a second breaker box.

Some inverters may require permission from your electric distribution utility or local distribution company. Here in Scotland, the distribution network operator must approve your inverter, but you can install and then notify up to 3.6 kW, whereas larger inverters require prior approval.

#Home #Batteries #Arent #Doomsday #Preppers #Heresshopping,energy,batteries,how-to,smart home,power">Home Batteries Aren’t Just for Doomsday Preppers. Here’s Why You Might Want One

With electricity costs soaring, home batteries have never looked so attractive. Whether you want to store the excess generated by your solar panels or simply buy electricity at the cheapest possible rate to use later when power is most expensive, a home battery can help. It’s never been easier to get a home battery installed, but this rapidly expanding market can be confusing, and there are several things to consider before you buy.

I’ve spent months researching home batteries, chatting to folks who use them, and then having one installed myself, and I have tips for anyone interested in getting a home battery of their own.

Why Would You Want a Home Battery?

There are several reasons you might want to invest in a home battery, and they are not mutually exclusive:

  • You want to store excess power from your solar panels.
  • You want to live off-grid.
  • You want to guard against power outages.
  • You want to buy electricity at a cheap rate and store it for use later.

Home batteries are a win-win, potentially benefiting power companies too, because battery storage is an essential part of grid balancing and can help manage and make the most of the intermittent power generated by renewables (solar, wind, waves).

How Do Home Batteries Work?

Image may contain Appliance Device Electrical Device and Refrigerator

Photograph: Simon Hill

A home battery is like a big power bank for your home. But rather than lithium-ion, they tend to be lithium iron phosphate (LFP or LiFePO4), because it is safer, more durable, and less prone to thermal runaway. In other words, less likely to overheat and burst into flames. There are a few manufacturers working with sodium-ion (Na-ion) batteries, which are potentially cheaper, more environmentally friendly (they don’t require lithium), and perform better in the cold, but they are also larger and don’t last as long.

Home battery technology is often the same as you’ll find in electric vehicles. Some folks have even suggested employing EV batteries as home batteries. But there are potential issues with that, not least finding your car battery drained in the morning. EVs are also driving the technology forward toward solid-state batteries, which are smaller for the same capacity, safer as they don’t have liquid electrolytes inside, and longer lasting.

Many home batteries come in modular systems, so you can add the capacity you want, but they require an inverter to convert the DC (direct current) power stored to AC (alternating current) power you can use. Folks with solar panels, or those who plan to add them in the future, should opt for a hybrid inverter, which can also convert the power from the panels for use or storage.

Inverters have different power ratings in kilowatts (kW) that dictate how much power you can draw at any given moment. Households with modest needs may get by with a 3.6-kW inverter, but that limits your continuous draw to 3.6 kW. They usually have a peak load capability that goes higher, enabling you to pull more for a brief period. If you have high-demand appliances like an EV charger or heat pump, you will want at least 5 kW, and folks with larger demands or larger batteries will want to go higher (6 to 10 kW).

What Should I Look For?

There are several things to watch out for when buying a home battery:

  • Capacity: Measured in kilowatt-hours (kWh), this tells you how much total energy the battery can hold.
  • Power output: Measured in kilowatts (kW), this shows how much energy the battery and inverter can deliver at any moment.
  • Depth of discharge: This is how much of the battery’s capacity you can safely use without damaging it.
  • Efficiency: This is the percentage of the power you put into the battery that you can actually use, because some energy is always lost in the storage process.
  • Warranty: This is a guarantee about the minimum performance you can expect before a battery degrades (they all degrade over time), and it’s often stated in years and charging cycles (whichever comes first). For example, EcoFlow promises at least 70 percent capacity after 15 years or 6,000 charging cycles.

How Much Home Battery Do You Need?

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EcoFlow via Simon Hill

It can be tricky to calculate how much battery capacity you need, and it depends on your use case. If you want to guard against outages or live off-grid, you must consider how much power you use over time and also the sum of your maximum power usage at any given moment to ensure your capacity in kWh and output in kW are enough. If the output is not high enough you may not be able to run power-hungry appliances at the same time, so you’ll have to think about how you use your power.

For folks like me, simply looking to buy at a cheaper rate to use when power is more expensive, any capacity will benefit you. But if you have a cheap six-hour rate overnight, for example, then you ideally want it to last for the other 18 hours. It makes sense to get as much as you can up-front because the installation costs are high. Even adding to modular systems later often requires professional installation to avoid voiding your warranty.

Do You Need Upgrades or Permission?

The home battery will connect to your main electrical panel via a cable, and it may require some upgrades. There was no room on my fuse board when I got a home battery installed, so they had to install a second breaker box.

Some inverters may require permission from your electric distribution utility or local distribution company. Here in Scotland, the distribution network operator must approve your inverter, but you can install and then notify up to 3.6 kW, whereas larger inverters require prior approval.

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