The US energy storage market has reached a new record high, with 12.3 GW of installations across all segments in 2024, according to the latest US Energy Storage Monitor report by the American Clean Power Association (ACP) and Wood Mackenzie. This represents a 33% year-over-year increase, with the majority of installations occurring in Texas and California. However, the fourth quarter saw a 20% decrease in grid-scale deployments, largely due to delays in projects.
The residential and commercial/industrial (C&I) sectors also experienced significant growth, with residential storage installations reaching a record-breaking 380 MW in the fourth quarter, and C&I installations increasing by 22% compared to the previous year. The report predicts a 7% installation growth in 2025, with the US expected to install 15 GW of storage across all segments, a 25% year-over-year increase.
However, the report notes that growth will likely slow down due to policy uncertainties, with the possibility of tax incentives phasing out and tariffs on Chinese imports being implemented. This could lead to a decrease in deployment by as much as 19% over the next five years. The report calls for continued policy support to achieve the goal of 1.5 TW of energy storage by 2030, in line with the COP28 goal of deploying 11 TW of renewables by the same year.
Overall, the US energy storage market is diversifying across geographical regions, with New Mexico, Oregon, and Arizona representing 30% of storage capacity additions in the fourth quarter. The industry is on a path to surpass 100 GW of grid-scale storage deployed by 2030, driven by a robust pipeline and forecasted sustained growth.