The booming U.S. energy storage market continued its growth trend in 2024, with 3,341 megawatts (MW) and 9,188 megawatt-hours deployed in the grid-scale energy storage segment through Q3 of 2024, according to the latest U.S. Energy Storage Monitor, a quarterly joint report from the American Clean Power Association and Wood Mackenzie. This is a new record for third-quarter installations.
Grid-scale storage—technologies connected to the power grid that can store energy and then supply it back to the grid at a more advantageous time—are a vital cog in the International Energy Agency’s Net Zero Emissions by 2050 scenario. This December 2024 report is met with excitement by industry officials.
According to John Hensley, senior vice president of markets and policy analysis for the association, “We are seeing the energy storage industry fill a real need across the country to provide reliability in an affordable and efficient manner for communities.”
The want of grid-scale energy storage systems was highest nationwide in Texas, where installs were tripled in successive quarters, and California, which added nearly 6 gigawatt-hours, the largest of Q3 installations.
Arizona, Colorado, Florida and Vermont also added installations.
While commercial and industrial growth remained steady with 29 MW installed, record-breaking growth was happening in the residential market with 346 MW or residential storage installed, a 63% increase over Q2.
California, Arizona and North Carolina led the way with 56%, 73% and 100% more storage added, respectively.
“The rapid energy storage deployment we’re seeing in the United States not only enhances reliability and affordability, but also drives economic expansion,” said Noah Roberts, vice president of energy storage for the American Clean Power Association.
Grid-scale and residential segments are expected to continue leading the market, with new installations expected to double by 2028. However, proposed changes in tax credits and protectionist measures instituted by the new administration could affect potential new projects.
“We have seen consistent growth in the market this year, especially in the grid-scale segment,” said Nina Rangel, senior research analyst for Wood Mackenzie. “Overall, storage installations will grow 30% in 2024, signaling the industry’s strongest year yet. However, it will be difficult to keep this pace. Between 2025 and 2028, we are projecting an annual average growth rate of 10%, as early-stage development constraints continue.”