I don’t know much about backups but if you don’t have enough space on dom0 home directory, increase it:
% df -Th /home/user
Filesystem Type Size Used Avail Use% Mounted on
/dev/mapper/qubes_dom0-root ext4 50G 33G 15G 70% /
I don’t think you need to increase to the size of your home dir to be the same as the backup size, try just increasing to 50G first and see how it goes. Don’t extend too much if you don’t have too much disk available, as LVM volumes can’t shrink safely.