March 27, 2025: US installations of energy storage systems set a new market record in 2024 of more than 12GW, new analysis published on March 19 revealed.
Meanwhile, BESS installations across the country are projected to rise by 25% this year — with grid storage installations forecast to hit 13.3 GW — according to the US Energy Storage Monitor report, released by the American Clean Power Association and Wood Mackenzie.
In 2024, a total of more than 12,000MW and over 37,000MWh were deployed, representing increases of 33% and 34% respectively over the previous year.
Texas and California continue to spearhead BESS developments, with 61% of the total installed capacity in the fourth quarter. The remainder was installed across 13 other states.
The residential storage market exceeded 1,250MW in 2024, marking its highest year on record and 57% above 2023 figures, the report said.
A record-breaking 380MW of residential storage was installed in the fourth quarter, marking an increase of 6% over the year ago period.
Meanwhile, 145MW of community-scale, commercial and industrial (CCI) storage was installed in 2024, a 22% increase over the previous year. California, Massachusetts, and New York accounted for 88% of installed CCI capacity.
ACP vice president of energy storage Noah Roberts said: “Energy storage is solidifying its place as a leading solution for strengthening American energy security and grid reliability in a time of historic rising demand for electricity.”
However, Allison Weis, global head of storage for Wood Mackenzie, cautioned that uncertainties surrounding the continuation of existing tax incentives and the Trump administration’s implementation of tariffs could change the long-term outlook.
“The combination of new tariffs on China (the dominant supplier in the global battery market) and other countries, with continued 45x and domestic content bonus added incentives would make US-based systems more competitively priced.”
But Weis said many domestic providers are not set up to meet quick demand. If higher pricing is combined with investment tax credit incentives phasing out beginning in 2028, it could lower the five-year deployment outlook by as much as 19%.
Last October, the US Department of Energy announced nearly $2 billion of funding for 32 projects to protect the US power grid against growing threats of extreme weather and help pave the way for the integration of renewable generation and large-scale BESS.
In a Zoom meeting, attended by Batteries International, former US secretary of energy, Jennifer Granholm, said the Biden administration’s Investing in America agenda had provided the largest grid investment in US history.
