The US energy storage market saw record-breaking deployment last year, according to a new report by the American Clean Power Association (ACP) and industry analysts Wood Mackenzie.
More than 12.3GW and 37GWh of energy storage was deployed across all segments last year, according to the U.S. Energy Storage Monitor report.
Last year’s record breaking numbers represent a 33% increase of megawatts and 34% increase in megawatt-hours deployed, year-on-year.
Grid-scale storage deployment
Despite the record growth, grid-scale energy storage deployments were down 20% in Q4 last year, compared to the same time in 2023.
Of the deployed capacity in Q4, 61% was installed in Texas and California; the remaining capacity was installed across 13 states. Growth is expected to continue this year, with grid-scale storage installations forecast to reach 13.3GW.
Kelsey Hallahan, ACP Ssenior Director of Market Intelligence, said: “We are increasingly seeing the industry’s growth diversified across geographic regions, with 30% of storage capacity additions in Q4 2024 represented by New Mexico, Oregon, and Arizona.
“With a robust pipeline, and forecasted sustained growth, the industry is on a path to surpass 100GW of grid-scale storage deployed by 2030.”
Record year for residential and CCI installations
More than 1.2GW of residential storage was deployed last year – marking a record year for the market sector with 57% more installations than in 2023, according to the report.
This was helped by a record-breaking 380MW of residential storage installed in Q4 of last year.
In the community-scale, commercial and industrial (CCI) market, 145MW of capacity was installed last year, a 22% increase on the previous year.
The US states of California, Massachusetts, and New York accounted for 88% of installed CCI capacity.
Growth forecast to continue
If forecasts prove right, 2025 will be another record-breaking year for energy storage deployment.
Across all segments, the market is expected to see 15GW of storage come online this year.
Analysts at Wood Mackenzie predict 81GW of total installations will be deployed up to 2029 – although they do express caution citing uncertainties around policy that could slow down growth.
Allison Weis, global head of storage of Wood Mackenzie, said the caution was because of the uncertainty around tax incentives continuing and what the implementation of tariffs would mean for the industry.
“The combination of new tariffs on China and other countries with continued 45x and domestic content bonus adder incentives would make US-based systems more competitively priced,” she said.
“However, many domestic providers are not set up to meet quick demand. If higher pricing is combined with ITC tax incentives phasing out beginning in 2028, it could lower our five-year deployment outlook by as much as 19%.”
