The energy storage market in the USA will see another increase in 2025.
The energy storage market in the United States continues to grow, although forecasts for 2025 indicate a slowdown in the expansion pace. According to the latest “US Energy Storage Monitor” report, the total capacity of new installations is expected to reach 15 GW. This represents an increase compared to the record level of 12.3 GW in 2024.
Record Year 2024
In 2024, the US added 12,314 MW and 37,143 MWh of energy storage, which was a growth of 33% and 34%, respectively, compared to the previous year. According to the American Clean Power Association (ACP) and Wood Mackenzie, the energy storage sector entered a new phase of dynamic growth, recording double-digit increases in installations.
“We are seeing greater geographical diversification of energy storage industry growth. In the fourth quarter of 2024, 30% of new installations came from New Mexico, Oregon, and Arizona,” said Kelsey Hallahan, Senior Director of Market Analysis at ACP.
Market Segment Development
The market changes were not uniform across all segments. The residential segment saw a 57% increase (1.25 GW in 2024), marking its highest result to date. Energy storage in the commercial, industrial, and community-scale sectors grew at a slower pace. Their total installed capacity was 145 MW (a 22% increase). In this segment, California, Massachusetts, and New York accounted for 88% of the total installed capacity.
Despite these impressive results, it is important to note that in the fourth quarter of 2024, the grid-scale energy storage segment saw a 20% decrease in deployments compared to the previous year. This was mainly due to project delays, which were pushed to 2025. Texas and California still dominate this part of the American energy landscape, accounting for 61% of the total storage capacity installed in the fourth quarter of 2024. The remaining 39% was spread across 13 other states.
Forecast for 2025 and the Impact of Policy
According to Wood Mackenzie’s forecasts, energy storage deployments will reach 15 GW in 2025, a 25% increase compared to the record-breaking 2024. It is expected that by 2030, more than 100 GW of grid-scale energy storage will be deployed in the US.
However, experts emphasize that given the political uncertainty, the future of the market is unclear. Allison Feeney, an analyst at Wood Mackenzie, notes that sector growth may slow down in the coming years, only to pick up pace again by the end of the decade. For 2025-2029, 81 GW of new installations are expected.
Uncertainty primarily stems from the future of tax incentives under the Inflation Reduction Act (IRA). Allison Weis, global head of energy storage at Wood Mackenzie, emphasizes that it is still unclear in what final form these incentives will be maintained.
An additional challenge is the potential for new tariffs on imported batteries and the limited ability of domestic producers to meet the growing demand. If prices rise, and tax incentives start to expire in 2028, the five-year deployment forecast could drop by as much as 19%.
The US Focuses on Energy Storage
Despite the potential challenges, the energy storage market in the US remains a key element of the country’s energy transition. This technology plays an increasingly important role in stabilizing renewable energy sources and improving the efficiency of thermal power plants.
“The energy storage industry is growing rapidly, providing reliable and cost-effective solutions for American communities,” said Noah Roberts, Vice President of Energy Storage at American Clean Power.
The future will depend on government policies, the development of local battery production, and the growing integration with the renewable energy market.
Source: https://www.ess-news.com/