The U.S. energy storage market achieved a new milestone in Q3 2024, driven by strong growth in grid-scale deployments. According to the latest U.S. Energy Storage Monitor report from the American Clean Power Association (ACP) and Wood Mackenzie, the quarter recorded 3,806 megawatts (MW) and 9,931 megawatt-hours (MWh) of energy storage installed across all market segments—marking an 80% and 58% increase compared to the same quarter last year.
Grid-Scale Installations Lead the Way
Grid-scale energy storage accounted for the majority of installations, with 3,431 MW and 9,188 MWh deployed in Q3. Texas and California led the segment, reflecting their increasing focus on storage solutions to enhance grid reliability:
- Texas: Installed nearly 1.7 GW, tripling its Q2 installations.
- California: Added close to 6 GWh, prioritizing longer-duration energy storage systems.
Other states, including Arizona, Colorado, Florida, and Vermont, also contributed to Q3 installations, highlighting growing adoption of grid-scale energy storage across the U.S.
Residential Storage Hits Record High
The residential energy storage market achieved its best quarter on record, with 346 MW installed—63% higher than Q2 2024. Leading states included:
- California: Up 56% quarter-over-quarter.
- Arizona: Grew 73% compared to Q2.
- North Carolina: Doubled installations with a 100% increase.
Despite challenges related to residential battery supply, demand remained strong.
Community-Scale, Commercial, and Industrial (CCI) Storage Steady
The community, commercial, and industrial storage sector saw 29 MW installed in Q3, a slight 4% decline compared to the same period last year.
Market Outlook and Projections
The report forecasts continued growth in the grid-scale and residential segments:
- Grid-Scale Storage: Expected to more than double by 2028, reaching 63.7 GW of cumulative capacity.
- Residential Storage: Projected to install 10 GW of capacity by 2028.
Although the U.S. energy storage market is expected to grow by 30% in 2024, Wood Mackenzie analysts anticipate a slowdown in growth to an annual average of 10% between 2025 and 2028, citing early-stage development challenges.
Policy and Industry Considerations
The long-term trajectory of energy storage may be influenced by future policy changes. Potential adjustments to tax credits and tariffs under the new Presidential administration could create uncertainties for developers and manufacturers. However, these shifts may also present opportunities for domestic manufacturing to increase competitiveness.
"Energy storage is playing an increasingly important role in supporting grid reliability, affordability, and sustainability," said John Hensley, Senior Vice President of Markets and Policy Analysis at ACP. "The market’s continued growth demonstrates its value in addressing rising energy demands and supporting economic development across the country."
