In recent years, the U.S. energy storage market has continued to grow rapidly. According to a report released by the American Clean Power Association (ACP) and Wood Mackenzie, the newly installed energy storage capacity in the United States reached 3.8GW/9.9GWh in the third quarter of 2024, a significant year-on-year increase of 80% and 58%. Among them, grid-side energy storage projects accounted for more than 90%, household energy storage accounted for about 9%, and commercial and industrial (C&I) energy storage accounted for about 1%.
Energy storage market segmentation performance
In the third quarter of 2024, the United States added 3.8GW/9.9GWh of energy storage, and the installed capacity increased by 60% year-on-year. Specifically, the grid-side energy storage installed capacity was 3.4GW/9.2GWh, an increase of 60% year-on-year, and the investment cost remained high, about 2.95 yuan/Wh. Among them, 93% of the projects are concentrated in Texas and California.
Household energy storage added 0.37GW/0.65GWh, an increase of 61% year-on-year and 51% month-on-month. California, Arizona, and North Carolina performed particularly well, with new installed capacity increasing by 56%, 73%, and 100% respectively from the second quarter. Although the United States faces a shortage of household energy storage batteries, which hinders the simultaneous installation of photovoltaic energy storage systems, market demand in these regions remains strong.
In terms of industrial and commercial energy storage, 19MW/73MWh were added in the third quarter of 2024, a year-on-year decrease of 11%, and market demand has not yet fully recovered.
Growth in residential and commercial energy storage demand
As more households and businesses choose photovoltaic energy storage systems to increase energy self-sufficiency, reduce electricity bills, and provide backup power, the U.S. residential and commercial energy storage market is showing a rapid growth trend.
Policy drives market development
The U.S. government has played a key role in the rise of the energy storage market. Through incentive policies such as the solar investment tax credit (ITC), the installation cost of photovoltaic energy storage systems has been greatly reduced. In addition, subsidies and tax incentives from state governments have further stimulated market development. It is expected that by 2028, the installed capacity of grid-side energy storage will double to 63.7GW; during the same period, the new installed capacity of household energy storage and industrial and commercial energy storage is expected to reach 10GW and 2.1GW respectively.
Challenges
Despite the bright prospects, the US energy storage market still faces multiple challenges. The high initial investment cost has constrained some consumers and companies; with the widespread application of energy storage systems, the treatment and recycling of waste batteries has become more prominent. In addition, the outdated grid infrastructure in some areas restricts the access and dispatch of distributed energy, affecting the deployment and utilization of energy storage systems.
Post time: Jan-10-2025
