Booming U.S. Energy Storage Market
The article examines the U.S. energy storage market and its role in clean energy, grid stability, and project economics. It cites a Wood Mackenzie and American Clean Power Association report and says the market is expected to reach $8.9 billion by 2026.
What Energy Storage Does
- Balances variable renewable generation from solar and wind.
- Supports grid stability.
- Integrates solar, EV charging, and other assets at customer sites.
- Improves ROI for renewable projects by shifting stored energy to the grid when needed.
Why It Matters
- Helps address intermittent renewable generation.
- Makes buildings more flexible grid resources.
- Can reduce energy costs.
- Can lower carbon footprint.
Programs and Incentives
- California Self-Generation Incentive Program (SGIP).
- New York Value of Distributed Energy Resources (VDER) tariff.
- Federal investment tax credit (ITC) when storage is paired with solar.
- Push for a standalone storage ITC.
Commercial and Industrial Uses
- Utility bill savings.
- Participation in energy markets.
- Power outage mitigation.
- Greenhouse gas emissions reduction.
- ESG leadership opportunities.
Recent Market Data
| Metric |
Value |
| U.S. energy storage added in Q2 2023 |
1,680 MW / 5,597 MWh |
| Grid-scale added in Q2 2023 |
1,510 MW / 5,109 MWh |
| Year-over-year industry growth |
20% |
| CCI quarterly decline |
53% |
| CCI year-over-year growth |
25% |
| Projects pushed to later years |
Over 2 GW |
Forecasts
- Between 2023 and 2027, the U.S. market is projected to install close to 66 GW.
- Grid-scale installations are expected to account for 55 GW, or 83%.
- Residential annual installations are forecast to reach 2.2 GW by 2027.
- CCI is projected to add just under 1 GW in 2027.
Market Challenges
- Supply chain issues.
- Interconnection queue delays.
- Project pipeline delays.
Article Details
- Author: Audree Grubesic
- Date: Dec 27, 2023
- Read time: 3 min