March 19, 2025
The American market for energy storage is meteoric rise. Last year the implementations of energy storage saw a new record with 12.3 GW of installations in all segments, according to the latter US Energy Storage Monitor report released by the American Clean Power Association (ACP) and Wood Mackenzie.
The report shows a total of 12,314 MW and 37.143 MWh deployed, which represents an increases of 33% and 34% respectively over 2023 figures.
“After another year of record entry, energy storage has been strengthened as a leading solution for strengthening American energy security and grid reliability in a time of historical rising demand for electricity,” said Noah Roberts, VP of energy storage for ACP. “The energy storage industry is quickly scaled to meet the moment and to deliver reliability and cost savings for American communities, to play a crucial role and to disturb and to balance cheap renewable energy sources and to improve the efficiency of thermal power plants.”
Record growth for storage on grid -scale
According to the report, storage places on the application -oriented energy storage have been particularly robust. Although the implementations in the field of energy storage on the quarterly scale fell by 20% compared to Q4 2023, this was mainly due to the delay of 2 GW of projects in the development of the beginning of Q4 2024 to 2025.
Texas and California continue to lead the market, with 61% of the total installed capacity in Q4, while the remaining 39% was installed in 13 states, which extended the storage implementation beyond the leading markets. It is predicted that storage installations will reach 13.3 GW in 2025.
“Energy storage has entered into a new phase of growth agents with the first year of double -digit implementation. We are increasingly seeing the growth of industry diversified in geographical regions, with 30% of the additions of storage capacity in Q4 2024 represented by New Mexico, Oregon and Arizon,” “ said Kelsey Hallahan, senior director of Market Intelligence for ACP. “With a robust pipeline and predicted persistent growth, the industry is on its way to surpass 100 GW of storage on Grids scale that will be deployed in 2030.”
Strong year for residential, CCI sectors
The residential storage market exceeded 1,250 MW in 2024, which was the highest year on record and 57% above 2023 totals. A record -breaking 380 MW of residential storage was installed in Q4 2024, an increase of 6% compared to the previous quarter.
In addition, 145 MW was installed in 2024 on the storage of community scale, commercial and industrial (CCI) storage, an increase of 22% compared to the previous year. California, Massachusetts and New York accounted for 88% of the installed CCI capacity.
Continued growth predicted for 2025
Predicted installations for 2025 increased by 7% compared to the prediction of the past quarter. All segments are expected to install 15 GW storage this year, which marks an increase of 25% compared to 2024.
“The activity has been strong and our prediction for this year is extensive,” says Allison Feeney, research analyst at Wood Mackenzie. “Because of policy security, however, growth will probably slow down this year and in the following years. Growth will go back to the end of the decade, with a projected 81 GW total installations from 2025 to 2029.”
Uncertainties surrounding the continuation of current tax stimuli and the implementation of rates can change the long -term prospects, according to Allison Weis, Global Head of Storage for Wood Mackenzie.
“It is still too early to determine the final form of IRA tax stimuli in the coming year,” said Weis. “The combination of new rates for China and other countries with constant 45x and domestic content bonusadder stimuli would make established systems competitive in the US, however, many domestic providers are not set up to meet the rapid demand. If higher prices are combined with ITC taxes that are portrayed in 2028, can be the fifth-year-old-laid-out as the losses of the Fifth-year-olds were canceled as the Fifth-year-olds were canceled as the Lasts Lostenlagen.”
Tags: Bess, Energy Storage, Nuts scale